WAR DEBT ISSUE

New Zealand Herald, Volume LXX, Issue 21515, 12 June 1933, Page 9

WAR DEBT ISSUE

BRITAIN AND AMERICA

CABINET'S NEW PROPOSAL

NOTE SENT TO WASHINGTON POSSIBLE TOKEN PAYMENT By Telegraph—Press Association—Copyright (Received Jan* 11, 5.5 p.m.) LONDON. June 10 The Cabinet has agreed to send a communication to the President of the United States, Mr. Roosevelt, through the British Ambassador, Sir Ronald Lindsay, stating its views on the war debt issue, which were cabled to America last night. It is believed that a conditional proposal was made which may involve nominal or token payment pending a settlement of the whole problem. There is good reason for believing that Mr. MaeDonald's recent visit to Washington was attended by a strong prospect of Mr. Roosevelt recommending a moratorium on the June payment, but it is obvious that Mr. Roosevelt's course of action since then has been seriously affected by minor revolts in Congress.

The Daily mail says it understands the Cabinet lias decided to offer America a token payment of £2,000,000 to cover the June and December payment. It u> hoped this will elicit a prompt indication of Mr. Roosevelt's intentions.

A British official wireless message says it is understood that tho war debt question which was considered by the Cabinet yesterday afternoon is still tho subject of communications with Washington. It is presumed that consideration of the matter will be continued over the week-end, and it is anticipated that thero will bo a further meeting of the Cabinet on Monday or Tuesday morning. A statement in regard to the payment of the next instalment of the debt is to be made in the House of Commons on Tuesday. AMERICAN ATTITUDE NO INDICATION YET PARTIAL PAYMENTS HINTED / (Keseived June 11, 7.25 p.m.) WASHINGTON, June 10 Officials at White House intimated to-night that no formal written proposal has been received from any foreign Government in regard to war debt instalments, and that until they are received tho President will take no action and indicate no opinion. It is reported that partial payments from Britain and Italy appear to be likely. It is conjectured that during Sir ! Ronald Lindsay's visit to Mr. Roosevelt on Thursday a suggestion was made for a part payment by Britain of an amount not to exceed 8,000,000 dollars. Tho Ambassador continued to confer with the State Department to-day, as also did the Italian Ambassador. The latter indicated that while a final decision still had to bo reached, a part payment was probable, and that Signor Mussolini was expected to discuss war debts in an address on foreign affairs to-night. Reports from Paris indicate that France will default again. SESSION OF CONGRESS ADJOURNMENT DELAYED OPPOSITION TO MEASURES (Received Juno 11.- 7.25 p.m.) WASHINGTON. June 10 In spite of determined pressure from White House that Congress should complete its legislative programme and adjourn according to schedule to-night, in accordance with President Roosevelt's known desire to deal with the war debt crisis and the World Economic Conference without so-called legislative interference, the special session will run into next week. The cause of the prolonged session was strong opposition from blocs who oppose certain features of the Industrial Recovery Bill and a limitation of expenditure on war veterans' allowances. This prevented the passage of these two important measures in tho President's programme.