WAR DEBTS

Otago Daily Times, Issue 21979, 14 June 1933, Page 7

WAR DEBTS

BRITAIN'S PROPOSALS AN EXTENSIVE REDUCTION PARTIAL PAYMENT OF INSTALMENT (United Press Association.) (By Electric Telegraph—Copyright.) WASHINGTON, June 12. (Received June 13, at 7 p.m.) Although it is officially silent as to the war debts issue being placed before the World Economic Conference the Roosevelt Administration to-night was represented as awaiting a formal British debt proposal, which is reported to be an offer to pay a portion of the instalment due on Thursday. Accompanying the offer, is expected to be a request for an extensive downward revision of debts.^ Meanwhile speculation has been increased as to the attitude of President Roosevelt towards accepting partial payment. It is known that the legality of such action has been given close study by the President and his advisers. Any request for extensive debt reduction 'is considered certain to arouse an immediate and emphatic protest from members of Congress, whether it is still in session or not. DESPATCH FROM WASHINGTON CABINET HASTILY SUMMONED. LONDON, June 13. (Received June 13, at 7 p.m.)* Information which reached Mr MacDonald during a dinner which he was attending decided him to call a special Cabinet meeting immediately afterwards. It is understood that the receipt of a despatch from the British Ambassador at Washington regarding war debts occasioned the decision. Mr Neville Chamberlain will make a statement in the House of Commons to-morrow afternoon. AMERICA'S ATTITUDE TOKEN PAYMENT NOT ACCEPTABLE. LONDON, June 13. (Received June 13, at 7.50 p.m.) The Daily Telegraph says that Cabinet has considered a despatch from Sir Ronald Lindsay indicating that President Roosevelt is unable to signify general acceptance of a token payment. Earlier the cabinet had definitely agreed that Britain cannot pay the full instalment while receiving nothing from her debtors. The purpose of the second Cabinet meeting was to decide the terms and was not for expressing the intentions of the Government. The Times says that some of the leading Ministers favour complete suspension of the June payment if a token payment is not accepted.

The Daily Telegraph's diplomatic correspondent says that Mr MacDonald's raising of the debt issue in his speech at the conference caused surprise and even some resentment among the American delegation, but his initiative was approved by other circles. NEWSPAPER'S STATEMENT LONDON, June 13. (Received June 13, at 9.45 p.m.) The Daily Chronicle's political correspondent says that Cabinet will default if President Roosevelt- refuses a token payment.