WAR DEBT HOLIDAY

Grey River Argus, 26 June 1931, Page 5

WAR DEBT HOLIDAY

! BRITAIN’S WELCOME j Prosperous Era Hoped I ITALY AGREES. I FRANCE’S RESERVATION. | (Aus, & N.Z. Cab’c Assn.) LONDON, June 21. | Britain, Germany and Italy have accepted without qualification the propopal of America for a year’s suspension of payments °* principal and interest |cn the war debts. France accepts with a reservation as to the unconditional payments due from Germany. The Dominions and India are to share in the reservations. ROME, June 24. ■ Premier Mussolini has telegraphed to the Italian Ambassador at Washington, instructing him to announce Italy’s readines s to accept Mr Hoover ’s proposal. LONDON. June 24. “The Times’s” Rome correspondent I states: Signor Mussolini says that Mr Hoover’s declared proposal involves notable Italian sacrifices, which he proposes, subsequently, to bring to America’s notice. BRITISH CHANCELLOR. AFFIRMS ACCEPTANCE. DOMINIONS CAN POSTPONE PAYMENTS. (Aus. & N.Z. Cable Assn.) RUGBY. June 24. 1 Au important statement was- made in the Commons by Mr Philip Snowden. who stated that the British Government ’s policy was to give practical effect to Mr Hoover’s proposal. The Government was offering the Dominions and India the same war debts 'concessions as Mr Hoover had proposed tor foreigners. He felt he was interpreting the countr/’s wishes freely i.i deciding to offer tin* Dominions the < ption of postponing the whole of their war debt payments to Britain for a year, beginning on July Ist next. (Loud cheers.) This would mean a budgetary loss of approximately eleven millions, but it wa s hoped that the revival of confidence and prosperity would more than justify the sacrifice. Mr Snowden said: “As the Prime Minister informed the House on June 22, the Government of the United Kingdom subscribe whole-heartedly to the principle of Mr Hoover's proposal, and is prepared to cooperate in elaboration of the details, with a view to giving it practical •effect without delay. I should like to tak* this opp rtunity to explain the steps we decided to take for thi s purpose. The nitre consideration we give to the President’s declaration the more it seems to us that having regard particularly to the history of the matter, that the declaration constitutes a very great gesture on the part of the United States and it will be a thousand pities if Europe does not respond to it in the same spirit. The beneficial effect of the pr posal may be lost unless steps are taken by all the countries concerned to give it prompt and practical effect. This is particularly the case as regards Germany, which after all. is the essential difficulty. We agree with tire view expressed by the United States Government that there

is no time for a conference. More prompt method must bp found for putting into operation the proposal of the United States Government for a complete and immediate suspension of German payments to the creditor Governments. The procedure which we would favour is that creditor Governments should forthwith notify the Bank for International Settlements that they agree to the proposal for suspension for one year of all German payments due to them. The decision does not rest with n s alone, and we are awaiting the view* of the other creditor Governments, but we hope it may be possible to secure an agreement on these lines as soon as possible. Mr Hoover’s proposal applies, however, to all inter-government debts, reparation and relief debts. The British Government for their part accept this proposal in spirit as well as letter. They accordingly will be ready to suspend fop one year all such inter-gov-ernmental debts due to them as soon as Mr Hoover’s proposal had been gonerallv accepted, and in the meantime, as from July 1. they will refrain from claiming instalments that may fall due. A s regards relief debts. His Majesty’s Government, at once, are taking steps to inform the other European Governments which hefld relief bonds, of thei r action, and will invit-e them to co-operate. Mr Baldwin, on behalf of the Conservatives, said hp would content himself with saying that the Government had taken a course fully consistent with the dignity and reputation of our country.

Air Lloyd George said he was very glad the Government had given this complete courageous and unequivocal answer to the very noble gesture of the United States.

Replying to Sir Austen Chamberlain, the Chancellor said he would make a statement later, as to how the budgetary proposition in the country would be affected by the Government’s policy.

“Nobody in this country will grudge such a gift to our great for such a cause.” says the “Daily Mail,” referring to Air Snowden’s statement.

The “News Chronicle” says: Air Snowden’s courageous, wise announcement will be received with satisfaction and relief in the Dominions, and will be endorsed here. At the same time it is necessary to recognise that it will involve a new burden on the British taxpayer. ITALY’S ATTITUDE. NEW YORK, June 25. The State Department has been informed by .the United States Ambassa-

. dor to Italy, Air Garrett, of Italy's acceptance of Air Hoover’s moratorium proposal. Air Garrett states the acceptf ance was cordial and complete and without any reservations of a political ’ nature. Britain’s Welcome VERY HEARTY. LONDON, June 23. The British Government’s cordial acceptance of the broad principle of Air Hoover’s proposals, announced by the Prime Aliaister i n the Commons, was to-day handed to the United States Government by the British Ambassador at Washington (Sir Ronald LindSpeaking at the American Chamber of Commerce luncheon at London, Air Thomas said the magnificent action of Air Hoover showed that he and his people were not only alive to the economic factor, but also the psychological factor. He could do no other at that American gathering than pay u tribute to thb wonderful gesture which wa g the first really practical step towards a world recovery. “But don’t let us fool ourselves.” Mr Thomas continued, “by assuming this is the one key. Do not let us misconstrue the situation by assuming that all is now well. There are still many difficulties to get over. There must be other moves, and those moves I believe are inevitable. ” The U.S.A. Treasurer, Mr Nelson, who visited Cambridge to see his son receive his degree of Bachelor of Arts, was himself the recipient of a distinction. DOMINIONS’ SHARE. (“Times” Cable.) (Received June 25 at 7.25 p.m'.Y ' LONDON. June 25. “The Times,” in a leading article, says:—“Though the internal war debts of the Empire have hitherto been regarded as purely a domestic matter, the Government has very properly refused to treat the Dominions with le*s generosity than foreign debto r s. thus making the total sacrifice one of eleven millions. This is a notable example to set to the debtor nations.” A Hitch FRANCE’S TERAIS. UNSUITABLE TO U.S.A. (Aus & N.Z. Cable Assn.) PARIS, June 24. France has accepted the moratorium, with reservations on unconditional annuities. The atmosphere was appreciably eased by the American Ambassador assuring the Premier that urgency o* the German crisis forced Air Hoover’s hand. There is no intention to overlook France, who was actually the first country consulted from Washington. Meanwhile, the press unanimously insists that France must not agree to the violation of unconditional payments. which are sacrosanct under the Young Plan. AL Briand. in the forenoon, had a conference with the German Ambassador. after which the French reply was cabled to Washington. WASHINGTON. June 24.

Secretarv Stimson, in a formal statement to-day. said the broadoutline 3 of Air Hoover’s debt moratorium would not be departed from. He said that substantial headway was being made in the diplomatic negotiations to work out the many . details, which must necessarily be adjusted in so large a subject. (Received June 25 at 7.45 p.m.) WASHINGTON, June 24.

A French Note on the reparations has been received to-day. It has s o modified President Hoover's proposals ?.s to appear to be disappointing and not acceptable in its present form.

It is understood that France wants thp non-postponable reparations to bo paid into a World Bank and the money loaned back to Germany.

France wi-hes .that no precedent shall be set for the suspension of th# Young Plan.

I President Hoover’s advisers, however, are inclined to believe that a compromise will be reached, assuring the 1 putting into effect of a moratorium. The Secretary of State, Air Stimson, made a statement to-day that is re- ' garded as a friendly gesture towards ■ France, ind’eating that America will » agree to some change in the details if 1 the basic nature of the Hoover proposal is accepted. GERMANY’S INDEAINITY. LENT BY CREDITORS! LONDON, June 25. The “Daily Telegraph” says:—Th© Banks of England and of France, the American Federal Reserve Bank, and the International Bank have lent the Reichs Bank (Germany) twenty millions sterling to meet the German payments due at .tin? end of this month. BERLIN, June 24. | Chancellor Bruening, broadcasting, expressed the Government’ s gratitude fo r Air Hoover’s proposal, but warned the German nation that the American plan would not end all its troubles. The Government had resorted to hard measures a'nd wou’d stick to them, beI cause even without reparation payments exceptional efforts would be required to get through the next eighteen months. He would welcome the opportunity of discussing the whole •position with French statesmen.

French Optimism STOCKS SOARING. (Received June 25 at 10 p.m.) PARIS, June 25. The quotations on the Paris Bourse continue to soar. The explanation of this appears to lie in a confident belief that the French reply to Mr Hoover will not invalidate the. Young Plan, and also that a real era of prosperity is .about to dawn. Advices from Berlin indicate that that has been only slight surprise at France’s conditional acceptance of the Hoover proposal. This was fully anticipated by the press.