DEBTS TO U.S.A.

Press, Volume LXIX, Issue 20881, 14 June 1933, Page 9

DEBTS TO U.S.A.

AWAITING FORMAL OFFER. ATTITUDE OF CONGRESS. (UKITED PRESS ASSOCIATION —TIT ELECTBIC TKLEGBAPH—COPYEIGHT.) (Received June 13, 7. p.m.) WASHINGTON, June 12. Although officially silent as to the war debts issue as placed before the World Economic Conference at London, the, Roosevelt administration to-night is represented as awaiting a formal British debt proposal, which is reported to be an offer to pay a portion of the instalment due on Thursday. An accompanying offer is expected to be a request for an extensive downwards revision of the debts.

Meanwhile speculation has been increased as to the attitude of President Roosevelt toward accepting partial payment. It is known that the legality of any such action has been given close study bv the President and his advisers. Any request for extensive reduction of the debts is considered as certain to arouse an immediate and emphatic protest from the members of Congress whether they are still in session or not. UNABLE TO PAY FULL AMOUNT. THE BRITISH ATTITUDE. SUSPENSION ALTERNATIVE TO TOKEN PAYMENT. (Received June 13, 7.50 p.ivi.) LONDON, June 13. The '"Daily Telegraph" says that the Cabinet has considered a dispatch from Sir Ronald Lindsay (British Ambassador at Washington) indicating that President Roosevelt is unable to signify his general acceptance of token payment of Ihe debt instalment.

The political correspondent of the "News-Chronicle" says the British Cabinet will default in the current debt instalment to America if President Roosevelt refuses token payment.

The Cabinet earlier definitely agreed that Great Britain could not pay the full instalment while receiving nothing from her debtors. The purpose of the second Cabinet meeting was to decide the terms, and not to expi'ess the intentions of the Government.

"The Times" says: "Some of the leading" Ministers favour complete suspension of the June payment if token payment is not accepted." The diplomatic correspondent of the "Daily Telegraph" says the raising of the debt issue by Mr Ramsay Mac Donald in his speech at the opening of the World Economic Conference caused surprise and even some resentment among the American delegation, but his initiative in this matter is approved by other circles. HURRIED MEETING .OF CABINET. WASHINGTON DISPATCHES. AMERICAN DELEGATE DEFERS HIS SPEECH. (Received June 13; 7 p.m.) LONDON, June 13. Information which reached Mr Ramsay Mac Donald during the dinner at the Grosvenor House Hotel decided him to call a special Cabinet meeting immediately afterwards. It is understood that the receipt of a dispatch from the British Ambassador at Washington (Sir Ronald Lindsay) regarding war debts occasioned his decision.

Although the meeting of the Cabinet lasted until midnight, it assembled again at 9 a.m. and considered the war debts position. It is believed that further urgent exchanges of views with Washington are occurring, as a preliminary to the statement of Mr Neville Chamberlain (Chancellor of the Exchequer) in the House V Commons this afternoon. The war debts crisis is overshadowing every other issue. There was little sign of an agreement being reached at midday.

Mr Cordell Hull (United States Secretary of State) postponed his speech to the conference as a result of dispatches from Washington.