WAR DEBTS QUESTION

Otago Daily Times, Issue 21983, 19 June 1933, Page 7

WAR DEBTS QUESTION

AMERICA'S NOTE TO FRANCE

COUCHED IN FORCEFUL TERMS (United Press Association.) (By Electric Telegraph—Copyright.) WASHINGTON, June 17. (Received June 18, at 11.30 p.m.) The United States on Saturday despatched a formal Note to France forcefully reminding the Government. of two unpaid war debt instalments and ignoring an appeal for a review of the situation. Similar Notes have been sent to Poland and Belgium, which are also in default of two payments. A Note was handed to the Italian Ambassador at the same time saying that while the Italian payment of 1,000,000 dollars might be considered unsubstantial by Congress the President was willing to enter into a discussion with respect to the Italian debt. It was made clear informally that France must place herself on the same footing as the nations which partially or fully met their obligations before the debt question will be reopened. INTENTIONS OF ITALY ROME, June 16. The Fascist Grand Council insists on negotiating with America for a final settlement of the war debts problem before December 15, when the next instalment is due. THE PRESIDENT'S POLICY NEW YORK, June IT. (Received June 18, at 7.25 p.m.) ' To-day the State Department made public a considerable part of the recent war debts correspondence, revealing a rather sharp Note to France, which country made no mention of inability to pay. The Notes to Belgium and Poland are almost identical, but noted their declaration of inability to pay. According to the best information, the President's debt policy regards the nations making token payments as not having defaulted. N Any suggestions of revision from them will be immediately acceptable as a basis of consideration, while those who have defaulted must make good the payments of December last, plus a token payment of the obligations of June 1.

The latter part of this policy is believed to be subject to p-ssible although much opinion holds that such action would not be fair to Britain and other token payers.