BRITAIN'S CONCLUSION

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

BRITAIN'S CONCLUSION

"The conclusion at which his Majesty's Government has arrived is that a payment of the June instalment could not be made at this juncture without gravely imperilling the success of the Conference, and involving widespread political consequences of the most serious character. In its view, the instalment should be considered, and discussed as part of the general subject of war debts upon which it is anxious to resume conversations as soon as these can be arranged. .. ■

"In the meantime in order to make it perfectly clear that it does not regard the suspension of the June payment as in any way prejudicing the ultimate settlement, his Majesty's Government proposes to make an immediate payment of ten million dollars as acknowledgment of debt pending final settlement. If, as they trust, the Government of the United States is thereafter prepared to enter upon formal negotiations for an ultimate settlement of the whole war debt question, his Majesty's Government would be glad to be informed of the time and place at which the United States Government would desire such negotiations to be begun." , FINAL DECISION WITH CONGRESS The United States Government, in its reply* takes note of the British. Government's observations, and the President points out to the British Government the well-known fact that it is not within his discretion to reduce or cancel die existing debt or alter the schedule of payments. Such a power rests with Congress. The President further suggests that the Bfitish Government should provide for representations to be made as soon as convenient in Washington regarding a further discussion of the entire debt question.

A statement is also issued at Washington tonight by President Roosevelt, in which it is pointed out that the payment of ten million dollars as acknowledgment of debt does, not in any sense, prejudice the freedom of-either Government in any subsequent discussion of the entire debt question which will, take account of this and other debt payments. The discussions, including those with the Prime Minister during his visit to America, are recalled, in which, however, time and circumstances-did not permit any definite cpnclusions. j

The President proceeds:. "Meanwhile the World Economic Conference is beginning under, most favourable auspices, and it is vitally necessary that during the opening days of the Conference difficult and possibly protracted discussion of debt be avoided. In the spirit of co-operation, I have, as executive, noted' the representations of the British Government with respect to the payment of June 15 instalment, inasmuch as the payment made is accompanied by a clear acknowledgment of the debt itself. In view of those representations and of the payment, I have no personal hesitation in saying that I do not characterise the resultant situation as default. Beyond this, the law and constitution do not permit me to go-"' NO WAR DEBTS AT CONFERENCE Continuing, President Roosevelt remarks that the "Economic Conference does not include in its programme any consideration of debts owed by various Governments to the United States. The American delegates have been instructed not to discuss debts with representatives of debtor Governments. This is in accordance with the further principle which I have felt important,that the debts be considered on their merits and separate from other international economic questions."