WAR DEBTS

Gisborne Times, Volume LXXIII, Issue 11826, 6 January 1933, Page 5

WAR DEBTS

STTR IN U.S.A. SENATE

HEATED DEBATE ARISES

CAUSE OF FRENCH HE FAULT

BORAH ACCUSES HOOVER

(U.P.A. by Eire. To?. Copyright

(Roe. Jan. 5, 8.10 p.m.) WASHINGTON, Jan. 4

For the first time since the abrupt, discontinuance of the -Hoovei'-Roose-Volb war debts correspondence, ihe subject of debts arose in-day in a heated Senate debate which was brought to a climax by Senator Borah’s charge that Mr. Hoover wn* directly responsible for starting the chain of events culminating in France’s default. Senator Borali alleged that Mr. Hoover, at the conference of Congressional leaders, asked for authority t.o negotiate changes in the French debt settlement, while Mr. Laval was preparing to visit the United States in 10. M.

Senator Watson, who wMr present at the conference, vigorously denied the allegation. Senator Borah continuing, said he did not doubt that France understood when she cancelled the that she would receive a readjustment of post-war problems which, > ll mv judgment, new stand in the way of the normal flow of economic uffairs,” added Senator Borah: ‘ I. am perfectly willing to consider debts as part of that progammo”. Senator Borah stated, however, that he was not convinced the cancellation ■of the debts would settle world economic conditions, because they are "too small an item.’’ BTC CANKERS BLAMED. Senator Johnson, who opened the debate, denounced the Hoover moratorium as causing the debt cancellation and reduction demands. He blamed Mr. Morgan, and other international bankers for the cancellation pro. pagandn. Mr. .Johnson asserted that Franco profiled by 70.000,000 dollars more than all her war debt payments to the United State?. by the sale, alone, of materials purchased from the United States on ihe credit of the 2,000,000,000 dollars included in the debt settlements. He landed AH. Roosevelt for declining to “consent to the appointment of a commission to deal with a. subject which we thought foreclosed. ’’ Senator Robinson declared that he would not ratify any arrangement, negotiated with a nation able to pay but "that they don’t want to pay is obvious from alt that has transpired during the last ten years. ’’ •'bthtatn does not want to PAY.” There is no doubt, Air. Johnson added, that Great Britain is able to pay, and encouraging the course taken by pay. hut which had refused”. I do not believe wo can justify inviting tlie French Government’’, he adoed.

SETTLEMENT MEANS RECOVERY (Press Association.: WELLINGTON. Jan. The opinion that the burden of wa r debts was inextricably bound up with recoverv from the depression. and that a settlement of the debt question would be followed hv the recovery of international trade was expressed by Mr. R. W. Taylor, formerly one of tile general managers of the Midland Rank, London, who arrived on a visit to the Dominion, by the Tamaron,