CHANCELLOR’S STATEMENT

Grey River Argus, 16 June 1933, Page 5

CHANCELLOR’S STATEMENT

j Government Prepared — TO ENTER NEGOTIATIONS. (Au<. & NZ Cable Assn.) LOXPOX. June 14. The British American Notes on th? debt instalment have been issued in a White Paper. Tn the Commons, Mr Chamberlain, speaking on the motion for the ad joiirninent, explained it had been ITtr •possible hitherto to arrange for a simultaneous announcement in London and Washington. He said that when the December > aymen* was made. Britain had sought an early exchange of views, with a view to tbe conclusion of the discussion before the .Tune instalment. If Britain had paid the full June instalment, she felt it would appear there was no reason why she should not pay indefinitely. This seemed impossible in view of the Lausanne provisional agreement I suspending the debts due to Britain., Further payments would therefore, be necessitated ending the Lausanne agreements, the reopening of vexed questions of reparations ami war debts, and plunging the world again into the certainty of despair, from which it was rcseured by Lausanne. Those considerations seemed to out* weigh all others. On the one hand the British Government felt the strongest objection to any course placing it in a position of having to repudiate obligations. “Its view of the I roper way to treat the June in stalment was to consider it merged in tho body of debt, whereupon the Government was prepared to enter formal negotiations as soon as can bo arranged.’’ ‘' W(> therefore decided to make it e'.enr that the suspension of the June instalment did not, an-l was not, intended to prejudice the ultimate settlement. We proposed to make a payment of ten million dollars in silver, which the I’nited States informed us she would accept at the rate of fifty ) cents per fine ounce. Wo acquired this silver from tho Government of India. ' I am sure Mr Roosevelt’s statement appreciating the spirit in which our proposal was made will give general sat-1 isfmtion. This settlement of a difll-* cult and delicate problem is a good augury for tho success of tho World Conference an] may provo the first step towards a complete final settle meat of the whole question of wai 1 debts. APPRECIATIVE SPEECHES. Sir Stafford Cripps, en behalf of the Labour Party, congratulated Mr Roosevelt on the realism with which he had faced the situation, and also congratulated the Government on the satisfactory agreement. Sir Herbert Samuel said the Liberals joined in the congratulations. It would have been lamentable if Britain had' been forced into the position of repudiation. Sir Robert Horne said the settlement represented a considerable alleviation of the country’s burden, as he was sure Mr Chamberlain had acquired the silver below the price which America was allowing. Mr Churchill ex pressed admiration for Mr Roosevelt’s wise and generous words, which would give a message of hope to tho whole world Mr James Maxton (Labour) declared that things must bo put in a proper prospective. We had simply induced our creditor to take something on account. and had obtained six months’ time in which the debt could be fully discussed. He hoped a real settlement would be found in that period.

SUPPLEMENT TO BRITISH CABINET.

(British Official Wireless). RUGBY, June 14. In the supplement to the British note to America it is not stated that ‘ ‘ treatment of inter-Governmental obligations must closely affect the solution of problems with which the World Conference has to deal, because they cannot be separated from tho influences which have brought the world to its present plight. For instance, it is generally agreed that one of the first and most essential aims should bo to increase the general level of commodity prices. It may bo recalled that after the Lausanne Conference, there was a marked tendency for prices to rise, but this tendency was reversed when the prospects of a final settlement of inter-Governmental obligations re-1 ceded, while the December payment' was accompanied by a sharp tall in prices, which was felt in America at least as much as in Europe. The experience therefore appears to show that the effect of these payments upon prices i s very direct. The United Kingdom Government had hoped that the United States Government would have been able to accede to the request to postpone payment of the June instalment, pending the discussion of War Debts as a whole Siner* this does not appear to have boon possible His Majesty’s Government is obliged to- decide its course of action, and such decision must in any case be of an extremely difficult character. In considering it His Majesty’s Government has felt its deep responI sibility not only to its own people, but to the whole world, which is awaiting the deliberations ami recommendations of the Conference with the utmost anThe conclusion at which His Majesty’s Government has arrival is that, payment of the Juno instalment could, not be made at this juncture, without gravely imperilling the success of tho

Conference and involving widespread political consequences of a most serious character. In its view the instalment should be considered and discussed as part of the general subject of the war debts, upon which they are anxious to resume conversations as soon as can be ;iirangeil. in order to make it per feeds char that it did not regard tho suspension ns prejudicing the ultimate set I loment. The Government then submitted tho proposal, which Mr Roosevelt accept-

MATTERS FOR

(British Official Wireless). RUGBY, June 14. The (‘xchan.o of views between the British and United States Govern' merits is now completed. The Chan cellor was abb* to announce in the Commons to-night that with tfio full assent of Mr Roosevelt, the pay ment of ton million dollars would be made as an acknowledgment of debt, [lending a final settlement. A White Paper was simultaneously issued, containing papers relating tu the ques t ion. Mr Roosevelt in his statement from Washington adds: ‘‘The Economic Conference does not include the con* sideration. of war d<d»ts in tho progranrme. Tho American delegates jWerr instructed not to discuss them ’with the representatives of debtor Governments. ’Phis is in accordance with the principle that the debts should be considered on their merits, and separate from other international economic questions.’’ A WASHINGTON CONFERENCE. WASHINGTON, June 14. Mr Roosevelt announced to-day. a. ten million dollars payment by Britain. as an ‘‘acknowledgment, debt ponding a final settlement.” Britain had asked fur a review of the debt agreement, and he had suggested she should send representatives to Washington to discuss this as soon as con-