WAR DEBT ISSUE

Evening Post, Volume CXI, Issue 41, 18 February 1931, Page 10

WAR DEBT ISSUE

SEARCHING QUESTIONS

AUSTRALIA AMD ALLIES.

SXOWDEN'S ItEPLIES

United Tress Association—By Electric Telegraph—Copyright. (Kcciuvetl 18th February, 2.30 p.m.) LONDON, 17th February. In the House of Commons tho Chancellor of tho Exchequer, Mr. Snowden, had a busy quarter of an hour answering questions in relation to the abatement of Australia's war debt f« Britain. In answer to the query as to what proposals had reached him :for revision of the terms, Mr. Snowdcfli said: "I have not received any conimujadcatioii on the matter." Mr. Mander (L.): "Will you p.oint out to the Australian Government that if the question arises Britain is hi no position to make any concession'?' Sir N. Gratton Doyle (C): *Will you also remember that these questions are most mischievous?" Mr. Snowden did not repily. Mr. Wise (Lab.) questioned Mr. Snowden relative to receipts of war debts from the Allies and the Dominions, and also Britain's payments to America. Air. Snowden, amplifying his reply, said: "Our payments to. tho United States for the year 1981-32 will be £33,550,000, aud our receipts from the Dominions £7,053,000." Mr. Wise: "Arc we to assume that the Balfour formula regarding repayments of Allied war debts did not includts the amounts paid us from the Dominions?" Mr. Snowden: "The portion of the Balfour Note on which the debt .repayment and settlements was made provided that there sliouM be correspondence between what we pay to America and what we receive from our debtors. That has been fulfilled." Mr. Wise: "Is it not the case that wo on the balance receive five or seven millions more than wo pay to America?" Mr. Snowden: "I don't think so. Of course, such correspondence varies from year to year." Replying further to Mr. Wise, Mr. Snowden said: "Australia will receive £520,000 on aocount of reparations in 1931-32. Australia is duo to pay Britain £5,548,809 war debt in the same period." Mr. Wise: "As every £1 paid in war debt is £1 less for Australia to spend in purchases, in this country, would it bo worth while in view of the unfortunate position of Australia to reconsider the basis of repayments?" The Speaker intervened, and the question was unanswered. Mr. Wise then sought a comparison of the percentage of Allied repayments and our payments to America in 1931-32. Mr. Snowden: "Our payments to America are 3.04 per cent, of tho capital sum outstanding at the beginning of tho year. The corresponding figure of Australian repayments to Britain is 6.0G per cent. It was impossiblo in tho case of the French and Italian war debts to Britain to express a distinction between capital and interest." Mr. Wise: "Is it not a fact that we are expecting Australia to pay four or five times as much per annum correspondingly as France and Italy pay us ? " i Mr. Snowden: "What we expect from Australia and what Australia is paying is tho sum due under the AngloAustralinn agreement."