ANGLO-AMERICAN DEBTS

Manawatu Standard, Volume LIII, Issue 14, 14 December 1932, Page 9

ANGLO-AMERICAN DEBTS

FURTHER BRITISH NOTE, PREVIOUS STATEMENT EXPLAINED. CHANCELLOR ON LAUSANNE AGREEMENT. (United Press Association —By Electric Telegraph.—Copyright.) (British Official Wireless.) Received December 14, 11.56 a.m. RUGBY, Dec. 13.

Following a Cabinet meeting this morning, a Note was addressed to the United States explaining that it was not the intention of the British Note of December 11 to touch upon a matter affecting the constitutional position of the United States Government. It should, therefore, be read solely as relating to the British Government s own position, which they have taker* after mature consideration, namely, that they are prepared to make payment on December 15 in the light of the considerations set out in the Note of December 11, and they must reserve the right to revert to these considerations in tho examination of the wholequestioiv to which the United States Government have agreed. A statement regarding war debt payments and their relation to the Lausanne agreement was- made in the House of Commons by the Chancellor of the Exchequer, Mr Neville Chamberlain. He was asked by Mr Churchill for an assurance that the Government would, in no circumstances, consent to tho preferential discrimination of France and Italy in favour of their war debt payments to tho United States as against their payments of similar debts due to Britain, and whether he would demand equality and simultaneity of treatment for Britain from these two countries in order to prevent all payments by bill countries to the United States on December 15 being made at the sole expense, of Britain. Replying Mr Chamberlain said the letter which he had addressed to the French Finance Minister at Lausanne in July, 1932, stated that the United Kingdom Government would have been glad if it had been possible to accept the French war debt as part of an alt round cancellation, but in the actual circumstances they could not enter into any definite commitments modifying tho existing war debt funding agreement. They agreed, however, that the annuities due under the agreement should he suspended until tho coming into force of the Lausanne agreement, or until it was decided not to ratify it. The British Government earnestly trusted that the examination of the whole question of war debts in relation to world recovery, which the United States Government had agreed to, would result in a settlement which would enable the Lausanne agreement to be ratified. Meantime, the British Government considered it was of the utmost importance that no decision should be taken at present to effect tlie Lausanne agreement, which could not be ratified. Consequently, the suspension of reparations and war debts would remain in force, but all the rights of the British Government under the existing agreements would bo in.tegrally reserved. i Answering a question as to whether France had agreed to pay Britain 12 millions a year irrespective of the payments from Germany, i the Chancellor of the Exchequer said the agreement with France provided that the payments were due to Britain quite irrespective of any payments received from Germany by France. He added: “We are entitled, and we intend if so able, to make a separate settlement with the Upited States.”

UNPOPULARITY OF AMERICA. SERIOUS ECONOMIC DIFFICULTIES. SYMPATHY WITH BRITAIN. NEW YORK, Dec. 12. _ “In this late hour of the international discussions of the foreign debt instalments due on Thursday it appears to be dawning on Congress that on that date this nation will be the most unpopular community in the world,” telegraphs the New York Times’s chief Washington correspondent.

_ “The last British Note and M. Herriot’s speech in the French Chamber of Deputies to-day seem finally to have brought a realisation that friendly admonitions from moderates abroad and repeated warnings from the domestic press have failed to convey,” he says. “The general attitude of Congress when it assembled was that the debtors were bluffing; that they had the money and were simply following the ancient trading tradition of trying to get out of paying it. “Although it cannot be said that the attitude of the majority of Congressmen is softening, they seemed surprised to learn that the payments may really involve serious economic difficulties. Many are becoming convinced that the December 15 payment will be the last under the existing agreement and that under the leadership of Mr Roosevelt the great Democratic majority will he obliged to lay new foundations before June 15, of 1933.” The correspondent declares that there is no sign of a yielding of any written bond for the December payment and that Mr H. L. Stimson’s statement to that, effect received unanimous approval in the Congressional cloakrooms.

“The spread of a feeling, however, that many Europeans will execrate the United States next Thursday has impelled most of the Democrats and many Republicans to seize with much satisfaction on M. Herriot’s declaration and to blame President Hoover for tho view of the debtor ‘Governments that wo had at last accepted the existence of a link between debts and reparations.” The correspondent also says that the Hoover moratorium is becoming increasingly unpopular. Many Congressmen publicly repent their assent and now warmly welcome M. Herriot’s statement that Germany should bo required to take the initiative. Sympathy with Britain, lie declares, is increasing and the previous flow of adverse Congressional statements has practically ceased, hut the feeling still exists that her pooling of her case with France was not adroit. The dispatch concludes: “Not the least unfortunate incident in an unhappy week for European America, is the fact that the date selected for President Hoover’s annual reception of foreign diplomats is Thursday.”

SUGGESTED IMPEACHMENT OF PRESIDENT. LITTLE SUPPORT RECEIVED. Received December 14, 11.5 a.m. WASHINGTON, Dec. .13. The House of Representatives by a

vote of 361 to 8 to-day rejected a move by Representative MoFadden, a Republican, of Pennsylvania, for tho impeachment of President Hoover on the ground that he betrayed the country in the war debts moratorium. Mr McFadden said that the President had usurped the powers of Congress- in proclaiming a debts moratorium. He contended that that action led to the present situation, involving the United States and its foreign debtors. „ Mr McFadden has long been a foe of tho Administration. Tho Pennsylvania Republicans in the House later demanded the resignation of Mr McFadden as secretary of their delegation. In Juno, 1931, President Hoover made an offer to the world of one year’s suspension of inter-governmental debts. ADVANCE IN VALUE OF POUND. Received December 14, 11.5 a.m. NEW YORK, Dec. 13. Advancing after an early decline, the Eound closed one and a-quarter cents igher at 327$ cents for cables. The Canadian dollar closed threesixteenths stronger at 86 3-16 cents. “NOW UNDERSTAND EACH OTHER. UNITED STATES TO ACCEPT PAYMENTS. Received December 14, 10.5 a.m. WASHINGTON, Dec. 13. Tho United States will send no reply to the latest British Note. After repeated conferences between President Hoover and Messrs Stimson and Mills the impression in informed quarters was distinctly that Britain and the United States now understand each other’s position and no reason is seen in official circles for the United States to reject the payment expected on Thursday. PRICE OF GOLD. Received December 14, 10.30 a.m. LONDON, Dec. 13. Gold is quoted at £6 6s 5d p-er fine ounce. DIFFERENT POINTS OF VIEW. LONDON, Dec. 13. The Morning Post’s political writer says that the United States Note is not regarded as raising a serious issue. It is expected that the British reply accompanying the formal payment will merely record the differing views of the two Governments. SUGGESTED NEW MONETARY SYSTEM. (British Official Wireless.) RUGBY, Dec. 12. The council of the Bank of International Settlements, at its monthly meeting to-day, decided to abandon its intention to establish a new monetary system based on gold until the debts question has been settled between the Governments interested. PROTEST AGAINST PAYMENT. LONDON, Dec. 13. The Daily Mail’s correspondent in Paris says that hundreds of ex-soldiers and civilians traversed the Paris streets last night to the Washington statue, where Colonel la Roque laid a wreath in protest against the debt payment. There were 460 arrests, but all were subsequently released. Colonel la Roque afterwards went to the American Embassy and delivered to the Ambassador the ex-servicemen s letter protesting against payment.