DEBTS TO AMERICA

New Zealand Herald, Volume LXXII, Issue 22131, 10 June 1935, Page 10

DEBTS TO AMERICA

JUNE 15 INSTALMENTS PAYMENTS NOT LIKELY BRITAIN WILL DEFAULT By Telegraph—Preßs Association—Copyright (Received June 9, 5.5 p.m.) WASHINGTON, June S It is officially stated that it is expected that all tho debtor nations except Finland will refuse to meet their war debt payments due to the United States on June 15. In answer to a polite reminder from the Secretary of State, Mr. Cordell Hull, the British Government replied that it would default on the 85,670,000 dollars due on tho date named and on an additional 380,000,000 dollars in arrears. The British Ambassador, Sir Ronald Lindsay, said Britain had despatched a Note last June explaining that she was not able to pay pending the negotiation of a final revised statement. Ho added that his Government had constantly given most careful consideration to the matter, but regretted that it did not appear that the essentials of the situation had changed since that Note was written.

PROPOSALS INVITED

ATTITUDE OF BRITAIN NO CHANGE IN SITUATION LONDON. June 7 A White Paper discloses tho fact that the United States Secretary of State, Mr. Corcloll Hull, in his Not© to the British Ambassador at Washington, Sir Ronald Lindsay, indicated that the United States was prepared diplomatically to discuss any proposals for the payment of Britain's outstanding war debt instalments.

Sir Ronald replied to the effect that his Government would be prepared to resume discussions whenever circumstances warranted the hope of a satisfactory result.