CHANGING VIEWS

Dominion, Volume 26, Issue 69, 14 December 1932, Page 9

CHANGING VIEWS

America and War Debts REALISATION uUMES Consequences of Payment SYMPATHY. WITH BRITAIN (By Telegraph.—Press Assn.—Copyright.) (Received Dec. 13, 9.30 p.m.). New York, Dec. 12.

“In this Jate hour of the international discussions of the foreign debt instalments due on Thursday it appears to bo dawning on Congress that on that date this nation, will be the most unpopular community in the world,” telegraphs the "New York Times” chief Washington correspondent.

“The last British Note and M. Herriot’s speech in the French Chamber of Deputies to-day seem finally to have brought a realisation that friendly admonitions from moderates abroad and repeated warnings from the domestic press have failed to convey,” he says. “The general attitude of Congress when it . assembled was that the debtors were bluffing; . that they had the money and were simply following the ancient trading tradition of trying to get out .of paying it. “Although it cannot be said that the attitude of the majority of Congressmen is softening, they seemed surprised to learn that the payments may really involve serious economic difficulties Many are becoming convinced that the December 15 payment will be the lastunder the existing agreement and that under the leadership of Mr. Roosevelt, the great Democratic majority will.be obliged to lay new foundations before June 15 of 1933.”

The correspondent declares 1 that there is no sign of a yielding of any written bond for the December payment and that Mr. H.. L. Stimson’s statement to that effect received unanimous approval in Congressional cloakrooms.

“The spread of a feeling, however, that many Europeans will execrate the United States next Thursday has impelled most of the Democrats and many Republicans to seize with much satisfaction on M. Herriot’s declaration and to blame President Hoover for the view of the debtor Governments that we had at last accepted the existence of a link between debts and reparations.”

The correspondent also says that the Hoover moratorium is becoming increasingly unpopular. Many Congressmen publicly repent their assent and now warmly welcome M. Herriot e statement that Germany should be required to take the initiative. Sympathy with Britain, he declares, is increasing and the previous flow of adverse Congressional statements has practically ceased, but the feeling still exists that her pooling of her case with France was not adroit. The dispatch concludes: “Not the least unfortunate incident in an unhappy week for European America is the fact that the date selected for President' Hoover’s annual reception of foreign diplomats is Thursday.”

NOT SERIOUS ISSUE

Differing Viewpoints (Received Dec. 13, 7.55 p.m.) London. Dec. 13. The “Morning Post’s” political writer says that the United States Note is not regarded as raising a serious issue. It is expected that the British reply accompanying the formal payment will merely record the differing views of the two Governments. AMERICAN REPLY Consideration in London CABINET -MEETINGS Official Wireless. Rugby, Dec. 12. The Prime Minister reached London from Geneva this afternoon. He was soon in consultation with his colleagues, among the matters receiving consideration being the United States reply to the Note in which the British Government notified its intention to pay in gold on Thursday, and that the payment was to be considered as a capital sum of which account should be taken in a final settlement which should be concluded before June 15. The American reply was that the Secretary of the Treasury was without power to concur in the British proposal, and was bound to regard the gold as an instalment. It- is anticipated that Cabinet will meet to-morrow, when the question of i whether a further communication should be sent to the United States is expected to be considered. In response to a request by the. Leader of the Opposition that a Government statement relative to the American debt payment should be made to the House of Commons before Thursday under conditions enabling the House to discuss it. the Acting-Prime Minister. Mr Stanley Baldwin, announced that the Government had arranged to devote the whole of Wednesday to a debate on this subject, and that an appropriate statement would be made probably by the Chancellor of the Exchequer. The Government would not put down a motion and the House won't! have a perfectly free debate. enabling the subject to be discussed from every viewpoint. BRITAIN’S BURDEN Basis of Payments to U.S. CHANCELLOR’S FIGURES Official Wireless. Rugby, Dec. 12. In a written reply to a Parliamentary question regarding British receipts and payments on account of reparations and war debts, the Chancellor of the Exchequer, Mr. Neville Chamberlain. has given details showing that Britain’s receipts in war debts amounted to £71,100,000, and in reparations £121,300.000. making a total of £192.400.000. Her payments to the United States for war debts amounted ... * to £326.200.000. thus exceeding her total receipts from war debts and reparations by £133,800,000. The Chancellor in further written replies to questions says that if the British war debt, to the United States had from the outset been settled on the same basis as French war debts to the

United States, the amount which the British Government had already paid would exceed the amount due on such a basis by 795 million dollars, and no further payments would be due until 1940. Similarly, if the British war debts had been settled on the basis of the Italian settlement, no further payment would be due until 1955. If, however, past payments were ignored and future payments in respect of the actual capital debt now outstanding were made on the basis of the French settlement the amount payable by the British Government on December 15 would be 22 million dollars instead of 954 million dollars, and, similarly, if future payments were made on the basis of the Italian settlement, the amount payable on December 15 would be 2J million dollars instead of 954 million dollars. Approximately 29 per cent, of the British debt to the United States would have been paid off by the payments which Britain-bad already made If the settlement had been made on the same basis as either the French, or Italian settlement. Under the terms.of existing settlement only 4 per cent, of the capital debt had been repaid. MORE CHEERFUL VIEW Chancellor’s Statement NO NEED TO QUARREL London, Dec. 12. “I don’t , think we need quarrel over Mr. Stimson’s reply,” said the Chancellor of the Exchequer, Mr. Neville Chamberlain, at Birmingham. Me don’t ask for the acceptance of our proposal for capital payment at this stage, but we have reserved the right to advance it when discussions begin. If the discussions are treated in the usual friendly spirit we believe it will be possible to reach a conclusion satisfactory to Britain and America. Referring to Lausanne, he said that the - question of asking payment from Britain’s debtors did not arise: at present. but if the Lausanne agreement were not ratified owing to. the impossibilitv of making a settlement with America, Britain’s claims upon her debtors would be revived in-full forceHe added: “I take, a more cheerful view of Britain’s prospects than for many months.” . - - HERRIOT’S POLICY Payment With. Reservations HOSTILITY IN CHAMBER Paris, Dec. 12. “France will pay America with reservations,” summarises M. .Herriot’s statement on the war debts policy, delivered to. a thronged, and excited Chamber of Deputies, resembling a theatre on a fashionable first night. M. Herriot refused to spgeify the reservations as he . wished to act unitedly with Britain, which had ghowu ad- l mirable loyalty, uprightness, and confidence. Deputies loudly cheered the statement that “Britain on all sub-

jects, but particularly on money matters”. irreproachably was upright and refused to be treated differently from France over the payment on December 15. France, said M. Herriot, had three alternatives: — (T) Payment unreservedly, which was unacceptable. (2) Refusal to pay, which was also unacceptable. France’s signature must be honoured. All hopes of international peace were based on the sanctity of contracts. The Chamber’s feelings against payment were understandable in view of France’s sacrifices, but the Government had to rise above temporary passions and consider France’s permanent, interests. Refusal to pay would intensify the ahti-French propaganda in America and jeopardise any future settlement. (3) The third alternative was to pay with reservations.. “This is the only possible course.” the. Premier said. “If we don’t honour our signature, I do not see how we can resume negotiations.” The Chamber adjourned until tomorrow. Prior to the speech, a meeting of Socialists, on whom M. Herriot relies for his majority,. unanimously rejected payment in any form pending summoning a general debts conference. As the Right is uncompromisingly opposed to payment and the Centre is also believed hostile, the Government’s position is considered critical despite the favourable impression created by M. Hcrriot’s speech. HIGH-PRICED U.S. GOODS No Need for an Embargo Montreal. Dec. 12. “Britain will not need to put a specific embargo against the United .States goods, if war debts payments continue, as the pound will depreciate still further, and it will not be possible to buy American goods in the United Kingdom on account of their high price.’’. Sir Norman Angell. British author ’ and economist, stated in an interview here to-day. REVISION OF DEBTS Vatican Organ’s Insistence Rome. Dec. 12. The “Osservatore Romano,” organ of the Vatican, in an inspired article, says that the sacrifices demanded of American must not be disconnected with peace. War debts, reparations, and disarmament are interdependent in Europe. The paper insists on revision' of war debts, because' they cannot be dissociated from reparations. The United States must insist, on the relation between revision and'disarmament.