WAR DEBTS TO AMERICA.

New Zealand Herald, Volume LXIX, Issue 21136, 19 March 1932, Page 11

WAR DEBTS TO AMERICA.

SUGGESTED REVISION. OPPOSITION BY DEMOCRATS. NO FRESH NEGOTIATIONS. By Telegraph—Preps Association—Copyright. WASHINGTON. March 17. 'I he Slate Department asserted that there was no foundation for the suggestion (hat the United States Government intended to reopen negotiations for the settlement, of debts. This statement was followed by a Democrat attack in the Senate against a revision of tho British war debt. Mr. 1). A. Reed (Republ ican—Pennslvvania), on behalf of the President, Mr. Hoover, denied that the subject had been under consideration. He said the question had not been discussed with the United States Ambassador (o Britain, Mr. A. W. Mellon, who was about to sail for London. Mr. J. 'l'. Robinson (Democrat leader, Arkansas) had quoted <x newspaper story published in Washington saying that Mr. Mellon was favourably disposed toward a revision. He issued a warning that any revision would be very carefully considered by Congress. After Mr. T. Connally (Democrat — Texas) had challenged the Government to state its position, Mr. Reed, who had just returned to the floor of the House, said: "I am authorised to say that there is not a word of truth in the newspaper article." President and America's Interests. Continuing, Mr. Reed said the debts should not be reduced or forgiven because America already had been generous and should not be asked to go further. Congress had decided plainly, ho said, and it had been practically unanimously agreed by both Houses that the burden of war debts must rest where it properly belonged—on the people who got the money. Replying to a question bv Mr. Connally, Mr. Reed reiterated that he was speaking with the authority of the President. Mr. Connally said that Mr. Reed was aware that the President wanted to scale the debts down. "He does not want anything of the kind," replied Mr. Reed. "He is just as opposed to sacrificing America's interests in that way as some of us who talk much more about it." Cancellation Might be Advisable. Mr. C. Glass (Democrat —Virginia), who was secretary to the Treasury when some of tho war loans were made, sharply disagreed with both the Democrat and Republican Speakers. He suggested that it might very soon become an advantage to the United States to modify, even to cancel, the debts. " I can see circumstances arising, if they have not already arisen," said Mr. Glass, " which will make it imperative in our interests to revise the debts. The very practical question is, or may be, involved whether it will be to the advantage of this country to readjust European indebtedness, or rather to insist upon our pound of flesh. " If those circumstances present themselves, what are you going to do about ! it ? America Not Going to War. ■" Suppose the European nations tell us in plain terms that they are n<*f able to pay, are you going to accept their statement or are you going to war ? I am convinced that Mr. Hoover sees the circumstances and that Mr. Reed does not accurately represent tho views of the President." Mr. Reed hastened to say he did not presume to speak for tho President, except to deny this nowspaper story. "Obviously we arc not going to war," Mr. Reed continued, " but I cannot conceive a combination of circumstances which would warrant the cancellation of debts. Already wo have waived a large part of the debts in our settlements."