CASE FOR WAR DEBT REDUCTION

Dominion, Volume 27, Issue 15, 12 October 1933, Page 9

CASE FOR WAR DEBT REDUCTION

British Attitude Stated by Sir F. Leith-Ross

DISCUSSIONS AT WASHINGTON

How France and Italy Gained at Expense of Britain

By Telegraph.—Press Assn. —Copyright.

(Received October 11, 10.15 p.m.)

Washington, October 10. A plea of radically altered world economic conditions, unforeseen when the war-debt settlements were made,, was advanced by Britain as a justification for the reduction she hopes to gain from the United States at the war-debt discussions. . The British delegates requested a reduction m the billion dollars of the total interest and principal payments scheduled for the next 51 years. A 1 The United States Under-Secretary to the Treasury, Mr. Acheson, described the American attitude as one of sympathetic listening, but they were alert to the insistence of Congress that the debts be paid in full as funded.

Sir Frederick Leith-Ross said Britain had made extensive purchases of American goods during the war amounting roughly to more than twelve billion dollars before the United States entered the conflict. Just before America entered the war the British capacity to make additional purchases here was virtually exhausted, but afterwards Britain secured loans from the United States Treasury. These were used to pay for materials already bought and to buy additional war supplies, largely munitions. These were put to their intended destructive use, so they could not be said to have any continuing value. The loans made after the armistice were for the purpose of settling war contracts and the payment of interest on loans previously existing.

Sir said on the basis of the 1923 funding agreement Britain would be repaying 99 per cent, of all the money advanced, while the French were let off with 62 per cent, and the Italians with 34 per cent.

Forty per cent, of tihe American advances to the Allies went to the British Government, while 80 per cent, of what the United States has received in payment came from Britain.

SOME SPECULATIONS Washington Correspondent New York, October 10.

The “New York Evening Post’s” Washington correspondent, reporting on the British-American debt negotiations, states that it is understood that the British policy will be to offer first a 10 per cent, payment of the total debt as a settlement in full, that being consonant with the Lausanne agreement, but the probabilities are that the offer will be firmly refused. The British delegation will then be prepared to discuss the payment of about one billion dollars, which would be a little less than a quarter of the total debt. On this proposal the real discussions will occur. However, it is seriously open to question whether President Roosevelt will be ready to accept even such an amount, and whether he would he a willing sponsor of the offer to Congress.

To-day’s session was devoted to the British presentation of the picture of their general fiscal situation to prove their inability to pay the debts in full.