WAR DEBTS SITUATION

Otago Daily Times, Issue 21980, 15 June 1933, Page 7

WAR DEBTS SITUATION

PAYMENT OF INSTALMENT TENSION IN LONDON SEVERAL CABINET MEETINGS (United Press Association.) (By Electric Telegraph—Copyright.) LONDON, June 13. The Sun Service says:— “ The debt situation is changing hourly and has provided Whitehall with 30 hours’ continuous tension comparable with the war-time crisis. Three Cabinet meetings and several Cabinet sub-com-mittee meetings succeeded each other within 18 hours, Ministers and officials rushing to telephones and motoring between the Economic Conference and Downing street. “ A mere handful was aware of a momentous decision by President Roosevelt. the details of which Mr Chamberlain is drafting into his statement in a locked room behind the conference lobby. “ The House of Commons was packed, everyone awaiting Mr Chamberlain’s deliverance, which was announced for 5.50 this afternoon. The entire Cabinet, excepting Mr MacDonald and Mr Chamberlain, was on the front bench until 5.45, when Mr Baldwin, Mr Runciman, and Mr Thomas were suddenly called behind the Speaker’s chair. The atmosphere became electrical, as it was realised that a hitch had occurred.

“It is believed that President Roosevelt suddenly changed his mind and desired to avoid the necessity of immediately facing Congress, therefore he wished to postpone his statement to June 15. The full Cabinet met hurriedly. Ministers were in a quandary, more especially since President Roosevelt’s. original decision caused such a relief.

“ The news is now common property, as it was impossible to withhold a statement of such magnitude which was no longer a Cabinet secret. Ministers sat for a few minutes, after which the Atlantic telephone and cables were again buzzing to urge the desirability of an immediate statement. It was then announced that' Mr Chamberlain would speak at 10 o’clock to-night.” EXCHANGES WITH WASHINGTON STATEMENT POSTPONED. LONDON, June 13. The Cabinet meeting lasted till midnight, and the members again assembled at D a.m. to consider the war debt position. It is believed that further urgent exchanges with Washington are occurring prior to Mr Chamberlain’s statement in the House of Commons in the afternoon. This crisis is overshadowing all else. There was little sign of agreement at mid-day. Mr Hull postponed his speech to the conference as a result of the Washington despatches. A TECHNICAL DIFFICULTY, (British Official Wireless.) RUGBY, June 13. Owing to a technical difficulty in the communications between London and Washington, Mr Neville Chamberlain was unable to make his statement in the House of Commons concerning war debts and the June instalment. In the eariy part of to-day's debate on the Foreign Office vote he expressed the hope that he would be in a position to make a statement during a later stage. THE BRITISH PROPOSALS PRESIDENT’S REPLY AWAITED. / (British Official Wireless.) RUGBY. June 13. Mr Chamberlain was unable to make in the House of Commons to-night the full statement that he had hoped to make regarding the war debt instalment. It was known that there had been constant communications by cable and wireless between the Washington Embassy and Loudon during the day, and it was first announced that Mr Chamberlain would speak at 6.30. Later he said he hoped to make a statement at 10 p.m., but an extremely interested House was again disappointed, for at 10.10 the Chancellor said that even then he was unable to make any complete statement on the June instalment. He said, however, that there had been a lengthy exchange of views between the British and United States Governments. “ The British Ambassador at Washington has to-day handed to the State Department a Note setting forth the British proposals. We expect to receive the President’s reply to-monw. We have no reason to suppose that it will be other than satisfactory to us, but as it has not yet reached us I am not in a position to state its terms.” Mr Chamberlain said he understood that arrangements had been made' by which it would be possible for the debate to be adjourned at 10 o’clock tomorrow night, and he hoped that he would then be able to make a complete statement on all the documents exchanged between the British and United States Governments. PRACTICAL SETTLEMENT PRESIDENT BELIEVED TO BE FAVOURABLE. LONDON, June 13. Mr Chamberlain appeared at 10.10 p.m. and further startled the House by announcing that the details were not yet disclosable. The Sun Service learned that Cabinet’s decision to postpone the statement until to-morrow was due to President Roosevelt’s desire immediately to follow his announcement in America with a personal broadcast throughout the continent, thus appealing to the populace over the head of Congress. It is understood that he will reiterate, as in his despatch to Britain, his consistent support of a practical debt settlement. He will propose, as part of the Anglo-America understanding, immediate negotiations, possibly in London, in order to secure a final and equitable discharge. NEWSPAPER COMMENT LONDON, June 14. (Received June 14, at 5.5 p.m.) The Times, in an editorial, says: “If President Roosevelt accepts a token payment it will be au act of courrgeous statesmanship, strengthening his prestige as a leader. His aid will enable the whole question of war debts to be settled. It woulc bo an outrage on justice if we were compelled for half a century to find enormous tribute for America while Germany went free. The arrangement must be such as does not require Britain to pay without receiving payment.” The Chronicle describes a token payment as an excellent bargain in buying time.