Will Britain Repudiate War Debts ?

Manawatu Times, Volume LV, Issue 6839, 21 April 1932, Page 7

Will Britain Repudiate War Debts ?

America Alarmed At Budget Omissions SENATOR BORAH’S CAUSTIC ATTACK t/nited I’ress Association. —By Electric Telegraph.—Copyright. Eocoived Wednesday, 7 p.m. WASHINGTON, April 19. The failure of the new British Budget to specifically provide for war debt and reparations payments next year brought a quick declaration from Senator Eeed, an Administration spokesman, that his Government expected to make the debt collection. “Foreign nations will not have to make any debt payments to the United States under the one-year moratorium until next December, and if there is any hint of a continuance of that moratorium,” Senator Eeed said, “I do not know of it.”

The New York Times’ Washington correspondent states that Mr. Chamberlain's Budgot message to Parliament to-day in not providing for next fiscal year’s debt payment to the United States provoked a sharp and varying reaction in official Washington. The Treasury Department, professed to regard the omission as an expected move whereas tho State Department indicated that no such definite statement was expected at least before the Reparations Conference at Lausanne in June. White House maintained complete silence.

However, Senator Borah (chairman of tho Foreign Delations Committee), in a caustic speech in the Senate, reiterated his opposition to any cancellation revision “until the peace treaties arc revised and armaments reduced.”

After outlining the usual anti-cancel-lation arguments, such as the burden on the American taxpayer of the seven billion dollars already cancelled, etc., Senator Borah declared that America was anxious to do anything to help stabilise Europe. However, the result of the Hoover moratorium was disappointing, which was not tho fault of tho United States, but “by reason of tho conduct of other nations clearly revealing that they had no desire to see Germany relieved.”

Senator Borah declared that the funding of the Allied debts following the war, in which great reductions were made, completely failed in their avowed object to produce economic stabilisation and he predicted that complete cancellation would not have the slightest effect on economic recovery, “if the policies now obtaining in Europe and the programme now offered the world from that Continent continue to obtain.” He said 1918 marked the starting of a great economic war which was still continuing. He outlined in detail the European war budgets and debt obligations and insisted that payment could bo made by arms curtailment. Senator Borah concluded by characterising tho reparations question as one Europe must settle. “The key to the European situation for good or bad is reparations. If Europe cannot solve the problem it is useless to talk to the American taxpayer about conccllation. ”