WAR DEBT PAYMENTS

Otago Daily Times, Issue 21828, 15 December 1932, Page 9

WAR DEBT PAYMENTS

RELATION TO LAUSANNE QUESTIONS IN PARLIAMENT STATEMENT BY CHANCELLOR (British Official Wireless.) (United Press Association.) (By Electric Telegraph— Copyright.) RUGBY, December 13. A statement regarding war debt payments and their relation to the Lausanne Agreement was made in the House of Commons by the Chancellor of the Exchequer. He was asked by Mr Winston Churchill for an assurance that the Government would in no circumstances ’consent to the preferential discrimination of France and Italy in favour of their war debt payments to the United States' as against their payments of similar debts due to Britain, ami whether he would demand equality and simultaneity of treatment for Britain from these two countries in order to prevent all payments by all countries to the United States on December 15 being made at the sole expense of Britain.

Replying, Mr Neville Chamberlain said the letter which lie had addressed to the French Minister of Finance at Lausanne in July, 1932, stated that the United Kingdom Government would have been glad if it had been possible to cancel the French war debt as a part of all-round cancellation, hut hi the actual circumstances it could not enter into any definite commitments for modifying the existing war debt funding agreement. It agreed, however, that the annuities due under the agreement should be suspended until the coming into force of the Lausanne Agreement, or until it was decided not to ratify it. The British Government earnestly trusted that an examination of the whole question of war debts in relation to world recovery—which the United States Government had agreed to —would result in a settlement which would enable the Lausanne agreements to be ratified. In the meantime the British Government considered it of the utmost importance that no decision should be iaken at present the effect of which would be that the Lausanne Agreement could not be ratified. Consequently suspension of reparations and war debts would remain in force, but all rights of the British Government under the existing agreements would be integrally reserved. Answering a question whether France had agreed to pay Britain £12,000,009 a year irrespective of payments from Germany, the Chancellor of the Exchequer said the agreement with France provided that payments were due to Britain quite irrespective of any payments received from Germany by France. He added: “We arc entitled, and wc intend if we are able, to make a separate settlement with the United States.”

AN EXPLANATORY NOTE (British Official Wireless.) RUGBY, December 13. Following a Cabinet meeting this morning a Note was addressed to the United States explaining that it was not the intention of the British Note of December 11 to touch upon matters affecting the constitutional position of the United States Government. It should, therefore, be read solely as relating to the British Government’s own position, which it had taken after mature consideration—namely, that it was prepared to make payment on December 15 in the light of the considerations set out in the Note of December 11, and it must reserve the right to revert to these considerations in an examination of the whole question, to which the United States Government had agreed. BRITAIN AND AMERICA A BETTER UNDERSTANDING. WASHINGTON, December 13. The United States will send no reply to the latest British Note. After repeated conferences between President Hoover, Mr Stimson, and Mr Ogden Mills, the impression in informed quarters was distinctly that Britain and the United States now understood each other’s position. No reason is seen in official circles for the United States to reject the payment which is expected on Thursday. MR HOOVER CRITICISED A REPUBLICAN’S OUTBURST. WASHINGTON, December 13. The House of Representatives, by 301 votes to 8, to-day rejected a move by Representative M'Fadden (Republican, Pennsylvania) for impeachment of President Hoover on the ground that he had betrayed the country in the war debts moratorium. Mr M'Fadden said the President had usurped the powers of Congress in proclaiming the debts moratorium. He contended that that action had led to the present situation, involving the United States and foreign debtors. Mr M'Fadden has long been a foe of the Administration. Pennsylvania Republicans in the House later demanded the resignation of Mr M'Faddcn as secretary of their delegation. REQUEST FROM FRANCE REVISION OF SYSTEM. PARIS, December 13. The French Note announcing that America would be paid requested prompt revision of the system, the cost of which was unbearable unless reparations were paid.

BELGIUM UNABLE TO PAY BRUSSELS, December 13. _ The Cabinet announced that the American debt, the December instalment of which would be £423,000, was based on Belgium’s capacity to pay, but the mom-, toriiim under the Lausanne Agreement deprived her of essential receipts, wherefore payment on December 13 was impossible. , DEFAULT BY POLAND WARSAW, December 13. It is understood that Poland, whose instalment is £BOO,OOO. is unlikely to pay America. THE REQUEST FOR REVISION WASHINGTON, December 13. (Received Dec. 14, at 9 p.m.) Britain’s new Note was received today, and Mr Stimson said: “Negotiations with the British Government are dosed so far as the December 15 payment is concerned. I do not anticipate that a reply will bo necessary to to-day’s Note.” Meanwhile officials have expressed considerable concern at the decision of the Belgian Cabinet to make default, and the precarious position of the Herrlot Cabinet, which many fear would not

weather to-night’s debate in the Chamber, admitting that the fall of the Cabinet would further complicate the situation.

Routine debt Note answers were delivered to the Belgian Ambassador and the Czechoslovakian Minister in the same phraseology, and rejected suspension of current navments.

The British Note explains that the Government, in Sunday’s Note, had intended to explain the circumstances on which it was decided to make payment, and had not intended “to touch upon any matter affecting the constitutional position of the United Stales,” hut it asserted that Britain “must reserve the right to recur ” to those considerations which she set forth. There is no quarrel here with this aim, and the Administration docs not believe that the claim which is to he made later will prove a complicated one. because so many of the larger questions will ho at issue in the revision. It is believed that negotiations for -revision cannot possibly he started before March 4.

Mr Hoover is preparing a special congressional Note on foreign affairs, and is now awaiting possible defaults before he frames the' communication. He is ignoring M. Mcrriot’s attacks in the Chamber of Deputies, apparently considering that they were uttered more for local consumption in France than for foreign cars. It is conceded that the possibility of default by other countries besides Belgium, would break “ the united front,” hut would not contribute to an easy approach to the problem of revision.

AMERICAN CONGRESS DEBATE A DRAMATIC TURN. WASHINGTON, December 13. (Received Ddc. 14, at 9 p.m.) What had hitherto been a sporadic debate on the debt question in Congress took a dramatic turn when representative M'Fadden, introducing the Hoover impeachment resolution, specifically charged him with “high crimes and misdemeanours,” chiefly in connection with war debts arrangements. Mr Hoover was also charged with having appointed Mr Mellon Ambassador to Britain while he was “ under a resolution charging impeachment.” Mr M'Fadden denounced Mr Hoover’s handling of the bonus army, which was probably responsible for si:: of the votes for his resolution. A REPORTED INTERVIEW DENIED BY MR ROOSEVELT. WASHINGTON, December 13. (Received Dec. 14, at 9 p.m.) In Albany, Mr Roosevelt took occasion categorically to deny a reported interview with the London Daily Express, saying he would urge the waiving of debt interest when he was inaugurated. He denounced the interview as “made out of white cloth,” and said it was very embarrassing. M. HERRIOT’S DEFEAT POSITION COMPLICATED. NEW YORK, December 14. (Received Dec. 14, at 10 p.m.) The lateness of the news from Paris of M. Herriot’s decisive defeat prevented official comment although in the light of the previous administration’s interpretation the situation is regarded as further complicated. The New York Herald-Tribune, in a leader, praises Britain’s latest Note. “The long debate with Britain is oyer and payment lias ended in a fashion which we are confident will in the long run count heavily for mutual understanding and friendship between two great English-speaking nations. We welcome it and congratulate the spokesmen of both Governments. The result is that English credit stands in American eyes at the high point at which it has been its tradition and boast. The consequence in this country, in our opinion, is that sentiment will be strong for leniency and generosity towards a debtor who is so careful of her honour.”

STATEMENT BY M. HERRIOT NOT MAKING THE PAYMENT. LONDON, December 14. (Received Dec. 15, at 0.30 a.m.) The Paris correspondent of the British United Press says that M. Herriot announced that his defeated Government would not make the debt payment to America to-morrow.