THE WAR DEBTS

Otago Daily Times, Issue 21831, 19 December 1932, Page 9

THE WAR DEBTS

HOOVER MORATORIUM OBLIGATIONS OF DOMINION OFFER TO BRITISH GOVERNMENT NEW ZEALAND TO REASSUME LIABILITY (Extraordinary Message—Per Press Association.) WELLINGTON, December 18. Following the expiration of the Hoover moratorium, the Prime Minister (Mr G. W. Forbes) and his colleagues at the week-end gave consideration to the position as it affects the obligations of this Dominion to the United Kingdom. It will be remembered that when the Hoover moratorium came into effect his Majesty’s Government in the United Kingdom, of its own volition, offered to extend the moratorium to the war debt of New Zealand to the United Kingdom—an offer which was gratefully accepted, especially as it gave a welcome and much-needed relief to the finances of the Dominion. The Hoover moratorium is now at an end, and last week his Majesty’s Government in the United Kingdom was obliged to make a heavy payment to the United States on account of its funded war debt. His Majesty’s Government in the United Kingdom had previously signified its willingness to continue the moratorium with respect to the obligations of this Dominion to the United Kingdom, but his Majesty’s Government in New Zealand now considers that it should not accept without question this most generous offer. It is convinced that the people of New Zealand would not wish to strain the generosity, always so freely extended, of the people of the United Kingdom, who are facing difficulties perhaps even greater than those confronting this Dominion. It has accordingly felt it advisable to inform his Majesty’s Government in the United Kingdom that if the United Kingdom’s offer to continue the postponement of the payments due by New Zealand was made on the assumption that its own payments due to the United States could also be postponed then New Zealand would feel bound to reassume liability. His Excellency, the GovernorGeneral, has accordingly been requested to convey the following message to the Secretary of State for Dominion Affairs :

“ His Majesty’s Government in New Zealand desires to recall the fact that his Majesty’s Government in the United Kingdom lately agreed to extend the operation of the Hoover moratorium with a view to granting financial relief to this Dominion, and the New Zealand Government gladly accepted this generous concession. His Majesty’s Government in New Zealand is not aware how far his Majesty’s Government in the United Kingdom granted this concession in reliance on an anticipated similar concession by the United States of America to the United Kingdom and it would be grateful to be informed whether the British Government would, in the circumstances as they now exist, desire to review the position, and restore the status quo ante, so that this Dominion should reassume liability for payment as if the moratorium had not been extended. If the concession to this Dominion was granted on the assumption of a continued moratorium by the United States of America then his Majesty’s Government in New Zealand would feel in honour bound to reassume liability.” The statement adds: “It Is felt that the action of the Government will meet with the whole-hearted approval of the people of this Dominion, notwithstanding the difficulties confronting them.” •

PRESIDENT HOOVER’S SPEECH REQUEST FOR COMMISSION * (United Press Association.) (By Electric Telegraph—Copyright.) WASHINGTON, December 16. President Hoover is preparing a message to Congress on debts, which is expected to be submitted on Monday. The message will probably renew the request for the creation of a debt commission. The speech was withheld to-day by Senator Harrison (Democrat, Mississippi), with the announcement to the Senate that certain circumstances have arisen that made it seem best to defer discussion. WASHINGTON, December 17. (Received Dec. 18, at 7.20 p.m.) Democratic leaders in Congress declare that, despite any plan Mr Hoover might have, the real adjustment of the debt eituation must await Mr Roosevelt’s inauguration. This disposes of the possibility of Mr Hoover and Mr Roosevelt co-operating for early action.

INDEBTEDNESS OF FRANCE payment may be made. WASHINGTON, December 17. (Received Dec. 18, at 6.30 p.m.) Apparently not wishing to aggravate the Franco-Amcrican debt tangle, Mr Harrison and Senator Borah refrained from discussing the matter in the Senate. It is understood that confidential ad- - vices from France to' the State Department indicated that the overdue payment might yet be made. The Administration officials refused to amplify the reports of a consultation with Mr Roosevelt. It Is likely, however. One of Mr Hoover’s spokesmen said that Mr Hoover’s general idea was to “keep the debt situation liquid" until Mr Roosevelt takes office. Meanwhile, Mr Hoover continued to be principally desirous of giving relief to Britain, thus helping to stabilise the currency and to resume the gold standard, with the result of higher commodity prices. defaulting nations COMMISSION MAY BE CREATED. WASHINGTON, December 17. jr (Received Dec. 18, at 6.30 p.m.) The United States has informed France, and given similar indications to other debtor nations, that the Administration is willing to continue the debt discussions but is opposed to any general conference and can make no offer of revision. This was the brief outline of the stand taken up by the Administration and given cut on Saturday as from an authoritative

source, while ’Mr Hoover and his aides continue to watch the efforts by France to form a Government and await other developments abroad. It was made clear that the indications given to the debtor nations had not been transmitted in the form of any new formal Notes, but had been passed on in previously exchanged notes and Informal conversations with diplomatic representatives. Mr Hoover feels that, in face of the defaults, the attitude of Congress against the creation of a commission to review international financial obligations may possibly be relaxed. No new decision has been made by him as to when his special message to Congress will be despatched. An indication was given that he would withhold it until developments abroad justified its despatch. SHIPMENT OF GOLD ENGLAND TO AMERICA. LONDON, December 17. (Received Dec. 18, at 7.20 p.m.) Arrangements have been completed for the shipment of £9,000,000 worth of gold to the United States in five British liners before December 31. The balance will be shipped during 1933. The Majestic, which will sail on December 21, will take the largest consignment — £2,400,000.