THE WAR DEBTS

Manawatu Standard, Volume LIII, Issue 9, 8 December 1932, Page 7

THE WAR DEBTS

DISCUSSION IN PARIS. BRITISH AND FRENCH MINISTERS. EXCHANGE OF VIEWS. . i/ilso. el ■' )r AIY Cobbe said that when he had d( appointed commissions ho had been ig- y< nornut of tlio political leanings of any w of the men, apart from two or three, tl Political influences had not weighed fl with him one iota. d< After a further discussion, Air A. a Af. Samuel declared: “Of course, all these appointments are political. It m is no use playing blind man’s bluff vc with two holes in the handkerchief. We know that if the Labour Party were in power, appointments would be made in a similar manner. Labour members (emphatically) : No! Afr Samuel: Of course they would, and if they were not made in a similar manner, the Labour Party v

not be playing the gam© vlti'day statsupporters. .miSay AiacDonald and jlr. -WivUle Chamberlain will discuss ' I with MAI. Ilerriot and Germain Alartin (tho French Finance Alinister) the status of the Lausanne agreements in ’ tho event of continued refusal by the ~ United States to postpone the war • " debt instalments due on December 15. The British Government is extremely anxious that the work done at LausV anno ,in devising a settlement of recl parations should not bo disturbed.

PREPARING AAIERICAN REPLY

Received December 8, 12.50 p.m. WASHINGTON, Dec. 7. Tire Secretary of State, Air H. L. Stimson, has practically completed the reply to tho second British Note, which will probably ho delivered to tho British Ambassador in a day or two. Air Stimson is also working on the reply to tlio second French Note.

CONCERN IN FRANCE.

PAYMENTS DUE TO BRITAIN

LONDON, Dec. 7. “Tt is no secret,” the Daily 'telegraph says, “that tho French Premier, AI. Herriot, is deeply concerned at the possibility that Britain and Italy may decide to pay their war debt instalments to America on December 10, whereas tho French Chamber will in all probability decide not to pay. AL Herriot is anxious to know, if I ranee pays America, will Britain expect payment simultaneously from France, while if Franco does not pay America will Britain still expect payment from Franco in order to facilitate her own payments to America in accordance with the Balfour formula?” The Daily Herald says that Air AlacDonald is informing Al. Herriot that Britain Will not expect France to resumo payments. Al. Herriot is threatened with defeat in tho Chamber in Friday’s war debt debate, but the pending visit of Air Ramsay AiacDonald and Air Neville Chamberlain may save the situation. The Times says: “President Hoover’s message to Congress has finally dispelled any hope that tho United States would not insist on payment on December 15. The only alternative to payment in goods services is to pay in gold. This will deplete our gold reserve, depreciate tlio gold price of commodities and the dollar value of the pound and close the door for a long time to any possibility of Britain’s return to the gold standard. The consequences, however, will not be so disastrous as would bo those of default.. By the time tho next payment is due tlie whole situation may be changed. There is every reason for Air Roosevelt to realiso the necessity of international co-operation. The outlook therefore is not completely discouraging.”

LAUSANNE SETTLEAIENT.

REGARDED AS PROVISIONAL.

(British Official Wireless.) RUGBY, Dec. 6. Tho recent British Note to the United States points out that “it was in the nature of tilings inevitable that the Lausanne settlement was provisional and that its completion was dependent upon a satisfactory settlement in respect of the debts for which the creditor Powers themselves were indebted to the United States Government.” It is emphasised that the Anglo-French conversations on this aspect of the question do not in any way imply a united front on the war debt issue.

It is expected that Air AiacDonald will return to Geneva and Air Chamberlain to London on Thursday night.

Askccl in the House of Commons today whether the French Government had indicated any intention as to the instalments of its debt to Britain due next March, the Chancellor pointed out that it was arranged at Lausanne that the payment of war debts should bo suspended until the coming into force of the Lausanne Agreement or until it had been decided not to ratify it. SIGNOR MUSSOLINI’S POLICY. ROME, Dec. G. The Fascist Grand Council, Signor Mussolini presiding, resolved that Italy should pay her war debt instalment due on December 15, which amounts to £250,000 at par but no more. Signor Mussolini reaffirmed his cleanslate policy regarding war debts, asking for immediate revision.