WAR DEBTS.

New Zealand Herald, Volume LXIX, Issue 21163, 21 April 1932, Page 9

WAR DEBTS.

PAYMENT WANTED. AMERICA'S ATTITUDE. "NO CANCELLATION" CRY. REPARATIONS QUESTION. SETTLEM ENT DEMANDED. By Telecraph—Press Association—Copyright. (Received April 20, 15.45 p.m.) NEW YORK, April 19. Despatches from Washington state that the failure of the new British Budget to specifically provide for war debt and reparation payments next year evoked a speedy declaration to-day from Mr. D. A. Reed, Republican metnber of the Senate for Pennsylvania, a Government spokesman. He said the United States Government expected to collect its debts. Foreign nations would not have to make any deb! payments to the-United States, under the one-year moratorium, until next December. If there was any hint, of a continuation of that moratorium Mr. Reed said he did not know of it. Mr. Peed said he had expected Mr. Chamberlain to include in his Budget the European debts payable on the termination of the moratorium and to remove them after the Lausanne Conference if arrangements were made. Arguments Against Cancellation. The Washington correspondent of the New York Times says the fact, that Mr. Chamberlain's Budget statement did not. provide for the next financial year's debt payments to the United Slates provoked sharp and varying reaction to-day in official Washington. The Treasury Department professed to regard the omission as an expected move, whereas the State Department indicated that no such definite statement was expected at least before the Reparations Conference at Lausanne in Juno.

"White House maintained complete, silence. However, Mr. W. I*'. Borah, chairman of the Foreign Relations Committee of the Senate, in a caustic speech in that House reiterated his opposition to any cancellation or revision of war debts until tho peace treaties aro revised and armaments reduced.

At the same time Air. Borah attacked Mr. A. Smith's proposal for :i 20-vear moratorium as unsound and not calculated to increase America's export trade or benefit anyone in the United States except the holders of private European securities. Hoover Moratorium Disappointing. After outlining tho routine of the anticancellation arguments, such as the burden of the American taxpayer, the £1,400,000.000 already cancelled, etc., "Mr. Borah declared ho was anxious to do anything to help stabilise Europe. However, the result of the Hoover moratorium was disappointing. That was not tho fault of the United States, but by reason of the conduct of oilier nations clearly revealing that they had no desire, to see Germany relieved. Mr. Borah declared that the funding of the Allied debts after the war, in which great reductions wero made, had completely failed in tho avowed object, namely, to produce economic stabilisation. He asserted that the complete cancellation of (he debts would not. have the slightest effect on the economic recovery of the world if the policies now obtaining in Europe and the. programme, now offered the world from that, continent continue to obtain. Separations the Key of Position. Continuing, Mr. Borah said 1918 marked the starting point of the great economic war, which was still being continued. He outlined in detail European war budgets and debt obligations, insisting that payment could be made by arms curtailment. Ho characterised tho reparation question as one which Europo must settle. Tho key to tho European situation, for gocd or bad, was reparations. If Europe could not solve the problem it was useless to talk to the American taxpayer about cancellation of debts.