DEBTS TO AMERICA.

New Zealand Herald, Volume LXIX, Issue 21233, 13 July 1932, Page 9

DEBTS TO AMERICA.

REVISION RESISTED. SENATORS' OPPOSITION. ALLEGED SECBET PACT. SCORNFUL DEFERENCE. / MR. BORAH'S INQUIRIES. By Telegraph—Press Association—Copyright. ' (Received July 12, 5.15 p.m.) NEW YORK. July 11. The Washington correspondent of the New York Times states that the Secretary of State, Mr. W. L. Stimson, in a gtf.tement- to-day, emphatically asserted that he had no information concerning a " gentlemen's agreement" among the debtor nations that the reparations settlement should be contingent upon the United States scaling down Europe's war debts.

Mr. Stimson said no representative oi the State Department had taken part in the agreement, nor had foreign Envoys; Bounded out the United States as to her willingness to make debt concessions. The chairman of the Foreign Relation!! Committee of the Senate, Mr. W. E, Boraji, refused to comment, but his colleagues say h 6 is seeking more definite information about the circumstances surrounding the agreement on reparations. Subsequently,' Mr, Borah proposes to make a speech in the Senate severely arranging America's foreign debtors and reviewing the "generous treatment" already accorded to them by the United States.

Mr. R. Smoot, Republican Senator for Utah, a member of the Debt Commission, declared that the reported secret agreement appeared to him to be evidence of bad faith on the part of the debtor nations and "an attempt to " club the United States into paying Europe's war debts." , Mr. Smoot asserted that the effect would be to, make the United States rigidly resist even the granting of a further moratorium.