REPLY TO AMERICA.

Manawatu Standard, Volume LIII, Issue 52, 28 January 1933, Page 7

REPLY TO AMERICA.

DISCUSSION ON AVAR DEBTS. EFFECT OF BRITISH NOTE. ' NEAV YORK, Jan. 26. “An intensive study of the British Note to America in official circles today resulted in a general opinion that the British in effect have rejected the Roosevelt-Hoover proposals and that the ‘score is again zero,’ ” states the New York Times’s AVasliington correspondent. Observers noted that the invitation to discuss war debts was qualified by an invitation to a simultaneous study of economic problems. In view of this some observers believe that Britain’s willingness at present only to discuss the debts has served to disrupt Mr Roosevelt’s programme. The best-informed members of Congress believe that, unless Mr Roosevelt formulates a new thesis or extends the moratorium there will be a series of defaults on June 15. It is held to be certain that Mr Roosevelt, even if he wishes, cannot induce the next Congress to remit any part _of the British debt unless accompanied by. substantial concessions. A message from AVarm Springs, Georgia, states that a new game in international relations will be played by Mr Roosevelt in taking up individually and separately with European heads the war debts question in March. Abandoning the commission idea, the President is determined to take full and lone responsibility for the outcome. Mr Roosevelt lias clamped down the lid on any discussion whatever about what he proposes. No one knows what he has. in mind. Silence even greeted the announcement by Britain accepting the Roosevelt counter-bid for the discussion of world economics in connection with war debts. There was, of course, gratification at the response, but the same secrecy, covering the war debts plans, applies to tlie Economic Conference.

Silence also met the declaration by Representative Rainedt against revision or reduction of debt payments. The State Department contends that the British memorandum is a step in the “game” and not necessarily final. It thinks that the British are merely seeking to reassure France that they will not be a party to setting up an Anglo-American economic bloc against the world. Persons so interpreting the British Note read with pleasure a dispatch from AA’arm Springs which represented Mr Roosevelt as considering tlie British move a strategic one and therefore he was determined to maintain a “poker face.”

One of his advisers, Professor Moley, who came direct from AVarm Springs, conferred with the Secretary of State concerning debts. Neither would reveal whether a new Note to Britain was imminent or contemplated.

CAPITAL PAYMENT SUGGESTED. LONDON, Jan. 26. The Daily Herald’s city editor says: “It is pretty certain that the settlement with the United States' must be in the form of a capital payment to clear all future payments on war debt account. On the basis of tbc Lausanne settlement, the British debt to the United States would be funded at about £60,000,000 in gold, hut such a sum is obviously too low to be acceptable. On the contrary, it is arguable that a capital sum equalling ten years’ purchase of the loan instalment might be reasonable. This would mean a capital payment of £360,000,000 in gold, or £470,000,000 sterling, but it is essential that it should be raised in the form of a loan in the United States; otherwise it would he impossible to transfer the money. It is unlikely that such a loan could be successfully issued in New York. A more reasonable figure is £325,000,000 sterling, which might he raised in New York at 4 per cent-., which would mean the payment of £13,000,000 sterling interest annually.