WAR DEBTS

Hauraki Plains Gazette, Volume VLI, Issue 3421, 18 December 1935, Page 8

WAR DEBTS

Great Britain has notified the United 'States that she will not meet her war debt payment due on December 15. On December 15, 1934, all European Governments except Finland defaulted as they had on June 15, 1934. At December 15, 1934, the total of the indebtedness from European States to the United States on account of war debts was 11,704,487,464 dollars and the instalments due, 629,795,963 dollars, Britain’s portion being 379,461,776 dollars. The British Government, on June 4, 1934, announced the suspension of all war debt payments to the United States until a final settlement had been reached, and declared that it was prepared to make an additional token payment on June 15, 1934, if it could thereby avoid the stigma of default. President Roosevelt, in a message to Congress on June 1, 1934, said: “We are using every means to persuade each debtor nation as to the sacredness of the obligation and also to assure them of our willingness, if they so request, to discuss frankly and fully the special circumstances relating to means and methods of payment. On May 10, 1934, the United States Department of State ruled that any token payment in the future would constitute a default. On March 31, 1934, there was owing to Great Britain from other countries on account of war loans the sum of £2,445,581,000, of which £1,182,992,000 was the uncollectable Russian debt.