EXCHANGE OF VIEWS

Evening Post, Volume CXV, Issue 139, 15 June 1933, Page 12

EXCHANGE OF VIEWS

ANGLO-AMERICAN DEBT QUESTION

STRONG CASE FOR FINAL SETTLEMENT

SUSPENSE AFFECTS WORLD PRICES

PRESIDENT'S REI*LY TO BRITISH NOTE

(British Official Wiroless.) (Received June 15, 2 p.m.) RUGBY, June 14. The exchange of views between the British and United States Governments, which has been proceeding for some time regarding the payment of the instalment of the war debt due on June 15,. has now been completed, and the Chancellor of the Exchequer in the House of Commons tonight was able to announce that with the full assent of President Roosevelt a payment of ten million dollars would be made as acknowledgment of the debt pending final settlement. A White Paper was at the same time issued containing papers relating to this question. They included the text of a Note communicated on June 13 to the United States' Government by the British Ambassador at Washington (Sir Ronald Lindsay). SPEEDY CONCLUSION URGENTLY NEEDED The British Note traces the recent history of the negotiations during the past six months, and proceeds: "For reasons not within the control of either Government, however, it has not yet been possible to arrive at a definite conclusion of these negotiations. A speedy conclusion is, however, urgently needed. The treatment of inter-governmental obligations must closely affect the solution of the problems with which the World Conference has to deal, because they cannot be separated from the, influences which have brought the world to its present plight. For instance, it is generally agreed that one of the first and most essential of our aims should be to increase the general level of commodity prices. It may be recalled that after the Lausanne. Conference there was a marked tendency for prices to rise, but that this tendency was reversed, when the prospects of a final settlement of inter-govern-msntal obligations receded, while the December payment was accompanied by a sharp fall in prices, which was felt in America at least as much as in Europe. DIRECT EFFECT ON PRICES "Experience, therefore, appears to show that the effect of these payments upon prices is very direct. In the opinion of his Majesty's Government, it is essential for the success of the Economic .Conference that the delegates should not be hampered and harassed by doubts about the possibility of a satisfactory settlement of war debts. The payment of a further instalment of debt at this juncture would inevitably be judged to mean that no progress whatever had been made towards such a settlement, and would therelore deal a damaging blow at the confidence of delegates.

"In ■ the circumstances and in view of its action last December, his Majesty's Government had hoped that the United States Government would have been able to accede to the request to postpone the payment of the June instalment pending the discussion of war debts as a whole.

"Since this does not appear to have been found possible, his Majesty's Government is obliged to decide, its course of action. Such a decision must in any case be of an extremely difficult character, and in considering it his Majesty's Government has felt its deep responsibility not only to its own people, but to the whole world, which is awaiting the deliberations and recommendations of the Conference with the utmost anxiety?