DEBT DISCUSSIONS

New Zealand Herald, Volume LXX, Issue 21403, 30 January 1933, Page 7

DEBT DISCUSSIONS

AMERICA AND BRITAIN MR. ROOSEVELT'S ACTION TAKES CONTROL OF MATTER SENDS FOR SIR R. LINDSAY By Tclegrapfi—Press Association—Copyright (Received January 29. 5.5 p.m.) WASHINGTON, Jan. 28 At the request of the British Government its Ambassador at Washington, Sir Ronald Lindsay, will sail for London about January 31 to discuss with the British authorities tho coming negotiations with the Roosevelt Administration on the question of war debts. The opinion in official circles in Washington is that Sir Ronald's journey will have as its object the prevention of a deadlock between Britain and the United States over the preliminaries to the March discussions.

The President-elect to-day assumed personal direction of the negotiations and virtually took over the functions of the Presidency, when he invited Sir Ronald to go to Warm Springs, Georgia, and confer with him on the situation prior to the Ambassador's visit to England to place the matter before the British Government. Sir Ronald flew from Washington to Atlanta and thence, accompanied by Mrs. Roosevelt, he motored to Warm Springs, where he will start discussions with Mr. Roosevelt to-morrow. Objects of President-Elect At a conference with journalists this afternoon Mr. Roosevelt replied to questions as to the nature of tho conference. Ho said he would discuss "debts and economics." It is assumed that the President-elect will inform Sir Ronald of bis views both as to the procedure in the negotiations and what the American attitude can be expected to be. There is much speculation about Mr. Roosevelt's exact motive in inviting Sir Ronald to confer with him. It is known that financial interests in this country are pressing him for sharp reductions in war debts. At the same time there is a considerable difference of opinion among his advisers concerning the extent of the reductions.

Furthermore London despatches indicate a strong objection to Mr. Roosevelt's " bargaining" policy. Informed circles believe that he wishes to take the negotiations out of Mr. Hoover's hand and take full control himself. Also they think he wants to acquaint the British Government, through its Ambassador, with his position in full, in order to avoid possible disappointment. Mr. Hoover Expects Concessions It is generally known that the present Administration is anxious for the British delegates to come to Washington, but it is also understood by unusually authoritative sources that Mr. Hoover disagrees with Britain's view that she has no tangible concessions to offer in exchange for a downward revision of war debts. The feeling is widespread in important Administration circles that no formal answer to London should be made at present, on the grounds that it might discourage Britain from engaging in discussions.

REVISION OPPOSED

INCIDENT IN SENATE FACTOR OF TARIFF INCREASES > (Received January 29, 5.5 p.m.) WASHINGTON. Jan. 28 In the Senate to-day Mr- A. R. Robinson (Republican—lndiana) introduced a motion that the House offer unqualified opposition to a revision of war debts. He assailed Mr. J. T. Robinson (DemocratArkansas) as leader of that party in the Senate for having brought the British Ambassador, Sir Ronald Lindsay, as his guest on to the floor of the House in violation of its rules. Mr. J. T. Robinson apologised, explaining that his action was inadvertent and that the subject of international debts was not even mentioned, much less discussed. Mr. A. R. Robinson rejoined: " I submit that a foreign Ambassador has no right on the floor of this House. Everyone knows his chief interest is to get his nation's debt reduced."

Mr. J. T. Robinson opposed immediate consideration of the motion, which was referred to the Foreign Relations Committee where it is likely to be "killed." The subject of war debts also arose at a meeting of the Ways and Means Committee of the House of Representatives,' which is considering a measure to increase the duties against foreign countries with depreciated currencies. Mr. James A. Farrell, formerly president of the United States Steel Corporation, in testifying before the committee as chairman of the Foreign Commerce Committee of the United States Chamber of Commerce, described the measui'e as the most important thing before Congress and one which would put the United States in a much improved position during the war debts negotiations.

This measure, introduced by Mr. L. Hill (Democrat—Alabama) has been generally ignored by the majority of his Democrat colleagues who desire to keep open the tariff question for the incoming Administration.

However, that the House will vote on (he subject was assured to-day when 145 members signed a petition asking for the discharge of the committee from further consideration of the matter. The vote is to be taken on Monday, February 13. The petition was tiled by Mr. J. C. Schafer (Republican—Wisconsin) and was signed speedily after a Republican conference which favoured this action in connection with a similar bill which would increase the duties automatically in a ratio to be determined by the amount of depreciation