WAR DEBT PROBLEM

Poverty Bay Herald, Volume LIX, Issue 17946, 25 November 1932, Page 6

WAR DEBT PROBLEM

COMMENT IN BRITAIN HOPES FOR REVISION A MERIC A ’S 1 tESI ’ONSTBIT JTY (British Official Wireless.) Rec. 2 p.m. RUGBY, Nov. 24. The reply of the United .States Government Note on war debts has reached London. The terms of the reply have not yet been pu'bl-stied, but the views of Mr. Hoover were publicly expressed in a statement issued at Washington. This declares that the debt agreement must be maintained in full integrity, except us adjusted by mutual consent. Discussion would proceed under more favorable circumstances if the terms of the debt obligations were carried out, rather than suspended prior to the discussion. When the terms of the American reply have been fully considered by the Cabinet, little time will be lost in forwarding a further communication to America. In authoritative circles, the possibility of suspension is not entirely ruled out of account. Mr. Hoover’s observation that no facts have as yet been advanced by the debtor countries to justify the suspension of the payments due on .December 15, pending the outcome of the negotiations on the whole debt, question, is recognised as accurate. There .can be little doubt but that the British Government will despatch,a further note to the United States explaining the reasons which prompted it to make the proposal, and thus follow the same procedure as was adopted by the creditor powers at the Lausanne Conference. MR BRUCE’S COMMENT Facts in support of the case for suspension arc abundant. The fluctuations of exchange anil the general disturbances of confidence which accompany the movement of large capital sums, are only two facts of which the world has had recent experience The desire, of the United States for negotiations with each debtor country separately has always been understood. The British Government already has expressed its willingness to comply. The appropriate departments in London are giving careful consideration to the United States Government’s reply. City diplomatic circles in London are agreed that Mr. Hoover’s note is not. altogether unsatisfactory as it leaves the door open to international discussion. A new note containing facts justifying the British request for a postponement has already been prepared, and it will be despatched after submission to the Cabinet, Paris messages suggest that there should be an exchange of views between the British and French Governments before a reply is sent to Washington. Press comments stress the tremendous responsibility resting on the United States if she reverses the Lausanne policy, and thus deals a smashing blow at world recovery. Tho French public is agitated as to whether Britain will demand the current instalment of £12,500,000 due under the Caillaux-Chiirchill agreement, which was provisionally wiped out by Lausanne. DOOR LEFT OPEN Mr. (Stanley Bruce, speaking sit a Thanksgiving Day dinner of the .American Society in' London, emphasised the responsibility that lay on those in authority to remove all obstacles in the way of mutual understanding. If we wore to emerge from, our trials it would be through the most complete understanding and. co-operation between the United States, and the British Empire. Britain, bv her efforts in man-power and finance durin the war, and her generous treatment of her debtors in the post-war period, had exhausted herself. The United States, with a great population and resources had, notwithstanding all her difficulties,-still a strength possessed by no other nations. Unless in a short, time ways could bo found in which the economic system of the, world could bring back prosperity to nations, employment to individuals, and reasonable justice as between classes, tho present system could not, hope to continue. Nothing should be allowed to interfere. He would even include .in such a category the burning question of the payment of interest on war debts. He did not think a further postponement would make much difference, except that it would have a psychological effect and would be a contribution towards the success of the World Economic Conference. If' the World Conference was a failure, the postponement of obligations on war debts would mean little. ]'f it. was a success, a solution of the problem should, be easy.