AMERICA PUZZLED

Evening Post, Volume CXIV, Issue 130, 29 November 1932, Page 7

AMERICA PUZZLED

OPTIMISM IN EUROPE

WAR DEBTOR NATIONS

PERSISTENT IN THEIR HOPE

POSTPONING PAYMENT

United Press. Association—By Electric TeU'

graph—Copyright. (Received 29th November, 11 a.m.) WASHINGTON, 28th November!

In view of the unwillingness of the United States to extend the war debt moratorium, the indications are that debtor nations will meet disappointment in their persistence that some* means of postponing 15th December payments could be found.

. The Administration is puzzled by the degree of optimism which seems to prevail in European capitals, despite the Notes sent to Britain, France, Belgium, Poland, and Czechoslovakia, advising them to meet their obligations. .

In almost identical terms the State Department informed Poland and Czechoslovakia that the President had no authority to extend the moratorium, and no facts had been placed "in our possession which could be presented to Congress for favourable consideration."

BRITISH MINISTERS

BUSY DRAFTING REPLY

GREAT EXPECTATIONS

(British Official Wireless.)

(Eeeeived 29th November, 11 a.m.}

KUGBY, 28th November.

Cabinet Ministers were busily engaged yesterday and will be further occupied to-day considering the terms of the second Note to be despatched to the American Government; The Prime Minister returned from Chequers yesterday afternoon and in. the evening was for nearly three hours in consultation with some of his senior colleagues, including Mr. Stanley Baldwin, Sir John Simon, and the Chancellor of the Exchequer, Mr. Neville Chamberlain. Mr. Walter Kunciman was out of town. Foreign Office and Treasury officials were in. attendance. ,

It is realised that President' Hoover's invitation to state in more precise terms the reasons which led the British Government to suggest a suspension of the next month's instalment of war debts payment gives an opportunity to make < a clear and explicit statement of the grounds for its conviction that it will be against the interests of the whole world, including the United States, to resunie debt payments at this moment. It is felt that an unanswerable case can be presented.

Tho final draft will be submitted to Cabinet for approval, before despatch to Washington. Meanwhile, the Government is taking all . appropriate measures to ensure that its action is supported by the nation as a whole. It is reported that a sounding will be taken as to the.views of the other political parties. Sir Herbert Samuel has already informed the Government of the attitude of his followers and himself. ..! ... ' ■■■■■■■' It should be. noted that the Ministerial discussions at present proceeding are not concerned -with the question •whether the payment duo on 15th December, should or should not be paid. That question lias not yet arisen. President Hoover requires a fuller documentation of Britain's case, and it is being prepared as quickly as possible. , INTEREST AND PRINCIPAL. The Financial Secretary to the Treasury was askea in ,the House of Commons what amount of debt due to the. United States from Britain in December was interest and what amount constituted repayment of the capital exPi'essed in gold pounds and whether1 under tho existing agreement Britain had the right to postpone payment of the latter until a future date: ..Mr. .Hore Belisha, Financial Secretary to the Treasury, stated in reply that the instalment due in December was 30,000,000 dollars in respect of capital and 65,550,000 :in respect of interest. Payment in respect of capital could, under existing '-agreements, be postponed for not more than two years, provided that'not less than ninety.days' advance notice had been given. Such advance notice was not given in the present case. The United btates Treasury may under the agreement waive such notice at their discretion.

Askea. whether the House wouia be consulted before any further payment of the war loan interest was made, the Prime Minister said thai if a request ™a!t £ scnssio\ on this matter was ■made through the usual channels, it would receive careful consideration, but it would not be in the public's interest to have a debate at this moment

THE CONSEQUENCES

DISASTROUS TO ALL

IF'PAYMENT. .IS ■MADE

LONDON, 28th November.

Commenting on the situation, "The Times" says:'"lt is not expected that the British Note will go into the general question of debt revision. , The Government should confine itself to explaining in simple language the disastrous effects which are bound to follow the transfer of 95J million dollars in the present crisis. It must seem irrelevant to the average American to emphasise the strain which the provision of that sum will impose on the overburdened British taxpayer. What concerns America is the effect upon American exchanges ana trade, coupled with the further depreciation of sterling and unsettlement of the whole reparations agreement achieved at Lausanne. It is not easy for the American taxpayer to understand how he will become poorer, not richer by exacting payment of debts legally due. ill ere need be no appeal to sentiment He should morely be asked to refrain from adding to his own burdens." According to nows from Paris, it seems increasingly probable that Franco's decision will depend off Britain's, and that she will refuse to pay if Britain refuses. The Quai d'Orsay is maintaining close touch with Whitehall. France's difficulty lies not in