WAR DEBT CRISIS

Poverty Bay Herald, Volume LIX, Issue 17947, 26 November 1932, Page 5

WAR DEBT CRISIS

ANXIETV IN BRITAIN PRESS CAMPAIGN LAUNCHED PAYMENT IMPOSSIBLE (Elec. To!. Copyright—United Press Assn.) (Received Nov. 26, 11 a.m.J LONDON, Nov. 25. The Cabinet meets on Monday to consider the war debt situation. Meantime, tho American note lias been circulated among Ministers and the debt committee of the Cabinet, which meets to-day. There was great activity at Whitehall yesterday, numerous conferences being held between Ministers and their diplomatic and economic advisers. It is not yet decided when the note will be published, but, presumably, it will he published simultaneously in London and in Washington. It may be delayed until the exchange of further notes enables the publication of the complete correspondence. The feeling in British official circles remains hopeful. The passage in Air. Hoover’s statement seeming to promise special consideration for such debtor nations as find immediate transfer impossible or hurtlul owing to depreciated currency is regarded in most quarters as designed to meet the British case. 'J iie point is emphasised that no decision regarding payment or non-payment will be taken by the British Government until tlm American reply to the forthcoming British note has been received.

Bir Walter Layton, in the NewsChronicle, says France, in addition to paying America £4.000,000, must resume paying Britain £12,000,000. Italy must pay America £250.000 and Britain £4,000,000. The Dominions, principally Australia, will resume paying £8,000.030 a year. “BRITAIN WILL NOT PAY”

While the rest of the press take the matter calmly, the Daily Express and the Daily Mail emphatically declare that it is impossible for Britain to pay tho United States.

The Daily Express, in an editorial, asks: “How does America suppose tho payments can be made? By sending goods? The answer would be that America would refuse to have them. By paying in dollars? The answer is that Britain has not got any. By paying in £s? America knows that if Britain tried, it would plunge exchange into chaotic dislocation By sending gold? It would mean a crisis. Such an act of Parliament would affect world trade and eb more disastrous to America than to us. Thus every door is closed. The American die-hards have one shot left—--1o make Britain bankrupt.” The Express political contributor says: “Britain will not pay. She will not refuse payment because she does not want to pay, but because she cannot. It is believed that the Treasury officials are aware of tho fact and are frankly admitting that they are beaten by the situation, and have no solution to offer In fact, it is currently credited that Mr Montagu Norman has no solution to offer. There arc rumors of Cabinet dissension —that some Ministers wish to make payments—hut Cabinet knows full well that we cannot pay.” These statements and arguments are printed in large type in double column on tho main pages, but are finding no echo elsewhere. Possibly they will produce a political sensation to-rlav.