BRITAIN'S DEBT TO U.S.

New Zealand Herald, Volume LX, Issue 18292, 8 January 1923, Page 5

BRITAIN'S DEBT TO U.S.

FUNDING NEGOTIATIONS. BRITISH OFFER REPORTED. FIFTY. YEARS AT 3| PEE. CENT. By Telegraph— Association— Copyright. (Received 8-5 p.m.) A. and N.Z. WASHINGTON, Jan. 6. The first business meeting of the- British and United States Debt -Filriding Commissions has been announced for January 8. The British Ambassador at Washington, Sir Auckland Geddes, gave a dinner ,to members of both commissions to-night. The British commission, having made it, known that.* the 'breakdown of the Paris Conference will . necessarily reflect upon the debt negotiations, Col. George Harvey, United States Ambassador to Britain, and Mr. Reed Smoot, member of the United States Debt Funding Commission, conferred on the situation on Friday. Mr. Smoot is preparing an amendment to the Debt Funding Act providing for extension of the powers of the United States commission, but he will not present it to Congress until the British commission leaves. Mr. Smoot stated that he believed that the sentiment of the country favoured modification of the terms' of funding of the British debt, which was fixed by Congressional legislation, but the sentiment among members "of Congress shows considerable opposition to modification of tho terms. The Washington correspondent of , the New York Times reported on Friday that the British commission visited the President. It is understood that the commission is prepared to submit a plan for the funding of the British debt for a period of 50 years, with interest at the rate of 3£ per cent. Acceptance of this plan would require Congressional action, since the funding legislation already passed provides for interest at not less than 4£ per cent, for a funding period of 25 years. The correspondent adds that the American and British commissions will hold negotiations, where suggestions 'will be received, and after tho British commission departs the American commission will make a report to the President, who will submit it to Congress. The British commission will confer with Mr. Hughes to-morrow.