POSTPONEMENT REQUEST

New Zealand Herald, Volume LXIX, Issue 21349, 25 November 1932, Page 11

POSTPONEMENT REQUEST

POSITION OF BRITAIN

STRONG JUSTIFICATION

STATEMENTS IN COMMONS

By Telegraph—Press Association—Copvright British "Wireless RUOIiY, Nov. '23 An important statement on Britain's request to the Unit Of! States for a provisional suspension of war do,(its payments pending a discussion, was made l>v Mr. Neville Chamberlain, Chancellor of the Exchequer, in the House of Commons tofla v.

Mr. Chamberlain said there was no doubt that the similar suspension of reparation payments which was agreed upon by the delegates of the creditor Governments at Lausanne bad the immediate effect of steadying public opinion in all the financial centres of Europe, and that it had assisted to create conditions favourable for the final agreement reached there.

"Since then the confidence' born of that settlement and the knowledge that 110 further transfers across exchanges in respect of reparations would bo required in tho near future lias continued to increase," said the Chancellor. "It seems to bo important in the interests, not only of this country, but- of the world generally, that it should nut bo disturbed at the beginning of a discussion which wo hope may prove advantageous to both parties engaged in it. " W'o have not yet received any reply from America, but I have no doubt that in replying to our proposal the American Government will bear in mind the considerations I have mentioned."

Britain's Penalty for Good Faith Mr. Winston Churchill, ex-Chancellor of the Exchequer, in his first speech in the House since bis recent illness, said he deeply regretted that the war debts question had been largely removed from the high circles of American statesmen who understood the world position, and was now to a large extent in the bands of obdurate assemblies, newly-elected, the members of which had given specific pledges to their constituents.

Without attempting to anticipate the British Government's decision, in the face of this torturing problem, said Mr. Churchill, he agreed that "if wo alone among all the combatants of the Great War, victors or vanquished, arc to be condemned, without receiving anything from our debtors, to pay for nearly two generations a vast overseas indemnity as a punishment for the exertions we made in tho war, and as a penalty for good faith afterwards, that it would be a situation which would indeed bo intolerable."

Mr. Amery Suggests Solution The former Dominions Secretary, Mr. L. S. Amery, said: " It is not beyond our capacity to meet our obligations to the United States if we have tho courage necessary to take unpleasant steps. We are free both of free trade and tho gold standard and could, pay three years' payments to the United States in the shape of £100,000,000 iri gold which is kept in the Bank of England only as a tribute to an old superstition. " Then we could give notice <o terminate the Anglo-American commercial treaty in order to impose a year benco special tariffs on United States goods payable in gold or dollars. Or we could listen to counter-proposals."

BURDEN INCREASED

SITUATION NOT FORESEEN

BRITISH SACRIFICE

British "Wireless RUGBY, Nov. 23 A reference to the war debts situation was made by the Marquess of Reading, who lias just returned from a visit to the United States, in an address to tho Eng-lish-Speaking Union. He said Britain's proposals for a postponement of the payment to America on December 15 was as important for America as for Britain. From what lie had seen, read and heard, the stale of feeling in America was that Britain had had a hard deal in the debt settlement. He believed the people of America were quite ready to revise that settlement.

" When the war debt agreement was made," said Lord Reading, "no one foresaw that 14 years from the Armistice wo would be in our present position. Under tho Anglo-American debt arrangement Britain paid more than any other countiy. She forwent greater portions of the debts due to her from other countries, claiming onlv that she should receive from them sufficient to enable payment to be made to the United States." The debt could only be. paid by gold or goods, and the services of gold were scarce, save in the localities where it was quietly and safely accumulated. If payment could not be made in gold the problem arose of payment by goods services. and there (hoy met with manifold difficult ics. If they took the value of goods and commodities at the time the settlement, was made it would take at least twice tho amount of goods to-day to pay the same amount of money. Therefore the burden was at least twice as great to-day as it was then. When the debt, was fixed at. a certain sum it was believed that Britain would be receiving reparations and would be paving America what she received. 'J here was now no question of getting reparations Lord Heading asked America to remember that Britain was receiving no payments at all.