AUSTRALIA'S WAR DEBT

Evening Post, Volume CXI, Issue 71, 25 March 1931, Page 9

AUSTRALIA'S WAR DEBT

HINT AT CANCELLATION

(From "Tho Post's" Representative.) SYDNEY, 15th March.

It will not occasion great surprise in Australia if there is found to be somo justification for a statement by Mr. Eldridge, M.H.K., in Sydney, last week-end, that a. simultaneous announcement by the Commonwealth and Imperial Governments would bring Australia rolief from the payment of her war debt. Mr. Eldridge said that he had been in communication with members of the Imperial Parliament on the question, and events had recently moved in a manner which suggested that his efforts and the efforts of others would be successful. He hoped that the people of Australia would soon receive a pleasant surprise. Australia's war debt to Britain amounts to £89,000,000, and the annual interest and sinking fund charges total £5,000,000. According to the story, of which a few of the members of Parliament claim to have knowledge, Australia would have been relieved of this war debt last year but for the fact that provision for the payment of interest and sinking fund had been made in the last British Budget. Ono Federal member, a staunch supporter of Mr. Scullin, said the other day that one of the Primo Minister's chief regrets over the repudiation policy adopted by the Labour Government in Hew South Wales was that it had complicated the negotiations with tho British Government.

The negotiations so far have- been carried oui with the greatest secrecy, according to well-informed circles, and it is not expected here that Australia will receive preferential treattnont over New Zealand and the other British Dominions. Mr. Seullin may fear the effect of the East Sydney by-olection, but it does not seem likely that this Labour victory, which was expected, could influence a decision on such a vast issue. It is more likely that both Governments aro waiting a convenient time to an-, nounee the far-reaching decision. It is held hero that the attitude of the British Press towards Australia —sympathetic in the extreme—indicates that a concession to Australia is likely.