DOOR NOT CLOSED

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

DOOR NOT CLOSED

FBBTHER BRITISH NOTE

FACTORS TO CONSIDER

EFFECTS OF PAYMENT

WORLD-WIDE SACRIFICES

By Telegraph—Press Association —Copyright (Received November 21, 10.55 p.m.) LONDON. Nov. 21 Mr. Hoover's statement on war debts is not regarded in British Government circles as unsatisfactory. It is realised that the door is not closed to further tliseus-

sion. It is understood that a further British Note will be prepared and despatched immediately, giving facts and figures in support of the British case. 1 lie position is regarded as open until this document is considered at Washington.

It will be necessary for tho United States Government to consider tho international effects of the transfer of £28.000,000 across tho Atlantic, while tho British Government must study the reaction from such a transaction on tho

financial position here, seeing that provision for payment was not made in the last Budget. Tho Times says: " It is clear that the decisive word rests with Congress and tho outlook at present is not favourable. If America insists upon the payment of the December 15 instalment it goes almost without saying that it will bo made. Any other course, supposing payment is humanly possible, would be contrary to British tradition and deal a fatal blow to the quaking edifice of international credit.

" If Britain were to repudiate her obligations her example, would bo followed by every debtor country, possibly even by private debtors." The paper proceeds to recount, the consequences and sacrifices entailed if the payment must be made, affecting the British taxpayer, the Empire and America herself, besides the Lausanne settlement.