WAR DEBTS

Hokitika Guardian, 22 November 1932, Page 5

WAR DEBTS

BRITAIN AND U.S.A.

MUCH SENTIMENT IN CONGRESS. (United Press Association—3y Electric Telegraph—Copyright.) . WASHINGTON, November 20. It is authoratiyely intiiiiated that President Hoover, while life probably will be informing the Allies that their j payments due on December 15th must be met, plans to ask the Governor-1 ' elect, Mr Roosevelt, at their eon er-, ence on Tuesday, to join him in urging ! upon the Congressional leaders the recreation of the debt commission. If Mr Hoover fails'"to obtain his ; successor’s . approval for this, 1 he may nevertheless, incorporate such a recommendation in his annual message to Congress on December sth, 1 although the latter body ignored a similar recommendation of his a year ago in the President’s moratorium message. Mr Hoover, it is known,, would like to effect some arrangements-before the end of his term whereby Britain, if | not the other debtors, would obtain an | immediate reduction in the payments due by her to the United States. He feels that such a concession is deserved, j because Britain originally settled on the basis of the debtor mofit able to pay, and is now regarded as-being in much a less favourable economic position than France or other Important debtor nations. much sentiment in Congress echoed by Senator Watson to-night. | favouring a reduction of the "British, debts, but, with the other nations also seeking downward revision, there appears to be little chance of favourable action on any of the proposals from the re-convening .of Congress. ’ Y .

ADVERSE TRADE BALANCE. MAY AFFECT BRITISH PAYMENT. LONDON, November 20. The tep months’ trade figures suggest that Britain is likely to be faced 1 with a heavier adverse balance than at last year. The ‘‘Financial News” ' estimates i the excess of imports of merchandise at £330,000,000, partly offset by in- 1 visible exports,, including shipping, in- ( come from overseas investments and : commissions, £2 1 401,000,000. . The ad- J verse balance is thus likely to be £9O,- 1 000,000 compared with £75,000,000 in urn. The figure reveal the impossibility of a regular resumption of American debt payments. Uncertainty-"in this connection has depressed the markets all the week and caused a renewal in 1 the fall of sterling. The December payment equals four years’ British exports to ~ United States. I

NEWSPAPER SUGGESTION. »' ...LONDON, November 20. The newspaper “Economist” suggests that the existing obligations should be replaced by a fresh issue of bonds, limited to an amount the debtor , Governments - could safely float in America, involving a reduction in the war debts equivalent to the Lausanne reparations and annuities. The paper adds that American financiers, administrators and the Press realise the impossible position. The public alone refuses to face' realities. LEAGUE AND LYTTON REPORT. “JAPAN’S REPLY IS DEFIANCE.” GENEVA, November 21.' The League authorities recognise that Japanese insistence; on the League’s - recognition of Manchukuo as a republic amounts to a rejection of the entire Lyittori report. •Even those who recognise the force of the Japanese arguments admit that the League cannot accept the Japanese thesis without undermining the whole of the League’s structure. It is expected that the Council of the League will be forced to approve of the first eight chapters of the Lytton report, at the same time record- ■ ing the Japanese and Chinese reservations, and that it will ' then forward the document for consideration to the ■ League assembly. The “Daily Herald” says: It would he hard to imagine a more definite defiance of the League of Nations than the Japanese reply, which categorically denie s the right o.f the League Council and the assembly even to discuss Japan’s actions. The issue has widened (beyond’ the Chmese-Japrtne, s e dispute. The whole future of the League and of the peace machinery is. at .stake. JAPAN’S POSITION. LONDON, November 21. The “Morning Post” says : “An impartial reading of the Japanese reply to the Lytton note makes it evident that Japan is legally and morally on stronger ground than her critics are willing to admit.”