REV LEW OF WAR DEBTS

Manawatu Standard, Volume LIII, Issue 17, 17 December 1932, Page 7

REV LEW OF WAR DEBTS

INDICATIONS IN AMERICA. SUGGESTED COMMISSION. CONGRESSMEN AND DIPLOMATS. (United Press Association—By Electric Telegraph.—Copyright.) NEW YORK, Dec. 15. “There are indications to-dav that President Hoover will soon consult the President-elect, Mr Roosevelt, regarding an ‘Appropriate Agency’ for a review of the war debts in anticipation of such a request from Britain in response to tho suggestion in Mr Hoover’s last Note,” says the New York Times’s Washington correspondent.

“It is believed that Mr Hoover favours a bi-partisan commission consisting of Congressmen and diplomats. Although it would be primarily formed to consider Britain’s case, it is assumed that it would be extended to cover other nations in connection with which the first difficulty lias arisen.

“Leading Democrats who would be sure to figure in an>- such commission have indicated that they believed Mr Roosevelt would not consent to such dealings with Franco and other defaulters ; they would not serve in such a capacity even if lie requested it. On the other hand, they declined to comment definitely in the case of Britain and other paj’ers, but indicated considerable sympathy in her favour.

“It lias been noted that cases where foreign affairs are negotiated with Congressional representation are usually successful while -without it they are failures, notably- President Wilson’s negotiation of the Treat3’ of Versailles and the League of Nations, which the Senate, having been without representation on the negotiating body, rejected.” STEPS TO BE TAKEN.

The correspondent outlines the steps which are expected to develop, as follow :

(1) Receipt of a Noto from Britain offering the idea of a commission which vrill be acceptable to Congress, Mr Roosevelt and Mr Hoover, it being noted that . the first two have already registered opposition to the recreation of the Debt Funding Commission.

(2) Mr Hoover will communicate with Mr Roosevelt outlining a diplomatic and Congressional commission authorised to. hear separately in Washington the case for revision of those debtors who paid to-da3\ (3) If Mr Roosevelt approves of the idea, Mr Hoover will dispatch a message to Congress outlining the facts and giving the names of commissioners who will then proceed to have as early a meeting with Britain as that country desires.

(4) Should Mr Roosevelt decline co-operation, Mr Hoover’s message wil merely outline tlie facts and leave the entire matter to Mr Roosevelt’s forthcoming Administration. LIKELY COMMISSIONERS.

Those mentioned as likely commissioners include Air H. L. Stimson, Secretary of State; Mr O. Mills, Secretary of the Treasury; Mr A. Mellon, Ambassador to Britain; Senators Reed and Harrison; Representatives Collier, Treadway, Owen and Young. If chosen on the basis of seniority in the Foreign Affairs 1 Committee ; Senators Swanson and Johnson are likely- candidates. An alternative-suggestion is that Mi* Hoover will recommend Congress ta form its own commission. In either event he will recommend trade concessions in exchange for debt revision at» the proposed AA’orld Economic Conference.

The President is represented ad being prepared to make recommendotions to Congress even if Britain fails to request a revision agency. He feels that any plans offered should take cognisance of the fact that ho will soon be leaving office, and the problem will certainly overlap into the Roosevelt Administration.

The question will be taken on to the floor of the Senate to-morrow, .. when Senators Borah and Harrison are expected to make addresses. The French default has certainly helped to preclude any action regarding the AVorld Court this session. The Democrats have indicated that they would object to holding any executive session, which would be necessary _ to handle the Court matter. Ostensibly they wish ta defeat confirmation of any of Mr Hoover’s recent nominations to various offices, although many have admitted that their opposition to the Court is due to a fear that the debts question might be placed before it.

PRESIDENT’S MESSAGE TO CONGRESS. REQUEST FOR DEBT COMMISSION. Received December 16, 8.55 a.m. WASHINGTON, Dec. 16. President Hoover is preparing a message to Congress on the debts, which is expected to be submitted on Monday, probably renewing his request for the creation of a Debt Commission. The proposed speech on war debts was withheld to-day by Senator Harrison, Democrat, of Mississippi, with the announcement to the Senate that certain circumstances have arisen that make it seem best to defer the discussion.

BRITISH PRESTIGE ENHANCED.

Received December 17, 8.55 a.m. LONDON, Dec. 15. Financial authorities say that the City envisages a flight to the pound on the theory that recent events have tended to enhance British prestige and credit. Sterling continued to display firmness and would have closed substantially higher but for the official intervention. • The Times.says: “The payment must be regarded ns ending a chapter of the long history of the war debts and - marks the beginning of the second, which must bring the story to an end. The preparation of the British case and the choice of its exponents cannot be taken in hand too soon. In the meantime there must be no bickering. Nothing will be gained by harking back to the past.”

PRICE OF GOLD

Received December 17, 11.10 a.m. LONDON, Dec. 16. Gold is quoted at £6 4s 9Jd per fine ounce.