WAR DEBTS

Hokitika Guardian, 12 October 1933, Page 5

WAR DEBTS

BRITAIN AND TJ.S.A.

FORMER SEEKING REDUCTION.

(United Press Association—By Electri* Telegraph—Copyright) ' 1

WASHINGTON, October 10

A plea of radically altered world economic conditions unforeseen when (the war debt settlements were made, £s advaned by Britain as a jtistificafion for a reduction that she hopes to fcain front the Unites States at the war debt discussions. The British delegates requested a reduction 'in the nine and a-half billion dollars total of the interest and principle payments scheduled for the next fifty-one years. •Mr Acheson described the Americans’ attitude as one of sympathetic listening, but they adhere to an insistence of Congress that the debts shall be paid J.n full.

Sir Leith Boss said that British purchases of American goods during the Avar amounted roughly to more than twelve billion dollars before the United States entered the conflict. Just before' America entered, the British capacity to make additional purchases here was virtually exhausted, but afterwards Britain secured loans Hr cm the ftMted Spates /Treasury. These were . used to pay for materials already bought, and to' buy additional war supplies, largely munitions. These were put to their intended destructive use, and so could not be said to have any continuing value. The loans obtained after the Armistice hero were for the settling of war contracts, and payments of interest on loans previously existing. On the basis of the 1923 funding agreement, Britain would be repaying ninety-nine percent, of all the money advanced, while the French were let off with sixty-two per cent.,’and the Italians with thirtyfour per cent. Forty per cent, of the American advances to the Allies went to the British Government, while eighty pet cent. of what the United States received in paymeint came from Britain.

INABILITY TO PAY IN FULL • ,' -NEW YORK; October 10. The “New York Evening Post’s” Washington correspondent, reporting on the British-American debt negotiations states:— , Tt is Understood that the ‘ British policy will be to offer, first,'ten per cent, payment of the total debt, as a settlement in full, that being consonant with the' Lausanne 'Agreement, but the probabilities are that offer will be firmly refused, whereon the delegation will then be prepared to discuss the payment of about one billion dollars, which would be a little less than a quarter of the total debt. On thin proposal, the real discussions will occur. " However,' it is seriously open to question whether Mr Roosevelt will be ready to accept even such an amount, •and whether hp is willing to sponsor it to Congress. To-day’s session was devoted to the British presentation of the picture of their general fiscal situation, to prove inability to pay the debts in full.