WAR DEBTS

Grey River Argus, 14 June 1933, Page 5

WAR DEBTS

BRITAIN WILL DEFAULT If Token Refused (Aus. & N.Z. Cable Assn.) LONDON, June 13. Information reaching Air AlacDonald during dinner decided him to call a special Cabinet meeting immediately afterwards. It is understood that a dispatch had been received from tho British Ambassador nt Washington, regarding the war debts which occasioned the decision. Air Neville Chamberlain will make a statement in the House of Commons to-morrow aftornoon. LONDON, June 13. The T.ondon “Chronicle’s” political correspondent says that Cabinet will default if President Roosevelt refuses tho proffered token payment. Token Payment Declined DEFAULT FAVOURED. i Received June 13 at 9.15 p.m.) LONDON, June 13. The ‘‘Daily Telegraph’s’’ correspondent says that Cabinet has considered a despatch from Air Lindsay indicating that President Roosevelt is unable to signify a general accep tance of the token payment. Earlier, Cabinet has definitely agreed that Groat Britain cannot pay thp ful l instalment while receiving nothing from her debtors. The purpose of the second Cabinet meeting was to decide terms, and not for expressing tho intention of the Government. The- “Timles” correspondent says that some leading Alinistors favour a complete suspension of tho June pa.v pent of thp token payment is not accepted. Tho “Telegraph’s’’ diplomatic cor respondent, says that Air AlacDonald raising the debt issue in his speech at tho Conference caused surprise, and even some resentment, among the American delegation, but his initiavo was approved by thp other circles. America’s Expectancy AGAINST DEBT REDUCTION. (R< reived June .13 at 9 p.m.) WASHINGTON, June 12. Although officially silent as to the war debts issue to be placed before the London Economic Conference, tho Administration was represented as awaiting the formal British debt proposal. which is reported to be an offer to pay a portion of the instalment duo on Thursday. Accompanying tbp offer is expected to be a request for an extensive downwards revision of the debts Meanwhile speculation has been increased a s to the attitude of Mr Roosevelt toward accepting a partial payment.

It is known that the legality of such an action has been given a close study by tho President and his advisers, and that any request for extonsivc debt reduction would be considered certain to arouse immediate emphatic protest from members of the Congcss whether still in session or not.