WAR DEBT PROBLEMS

Poverty Bay Herald, Volume LIX, Issue 17947, 26 November 1932, Page 6

WAR DEBT PROBLEMS

ERITAIN’S REQUEST

UNITED STATES’ REPLY

“NO REASON FOR SUSPENSION”

(British Official Wireless.) Roc. 1 p.m. RUGBY, Nov. 25. The United States’ reply in the British Note is still under consideration.

The reply of the United States Secretary of State to the British Note on war debts has been issued, as follows: “Your present suggestion for a general review goes far beyond anything contemplated or proposed at any time in the past either by Air. Hoover or this Government, and even the suggestion quoted in your Note was nut adopted by tho Congress of the United States. In view of these facts, and in the light of the historic position of the United States that reparations are solely a European question in which the United States is not involved, I am sure no inference can he intended that tho settlement of the German reparations at Lausanne was made in reliance upon any commitments given by this Government. “I appreciate the importance of the step taken by the Governments at Lausanne in respect of reparations and the possible effect upon those creditor nations of the loss of that source of income. lam not oblivious to the fact that the world-wide depression and the concurrent fall in prices have increased the weight of debts in many parts of the world, nor to the fact that the decrease in internal trade lias increased tho difficulties of obtaining foreign exchange. I also recognise the relation which these facts may bear to the process of recovery. “On the other hand, it must bo remembered that these incidents of the depression have also fallen with great weight upon the American people, and the effects upon them directly as taxpayers or otherwise of any modification of the agreement with respect to debts due to this country cannot bo disregarded.

PRESIDENT’S ATTITUDE UNCHANGED

“I confess I cannot sec any presen tation in your Note which would be likely to induce Congress to act upon the question any differently now from the principles upon which it voted in the past. The attitude of the President, therefore, is that for any suggested study of inter-Govcrmcntal financial obligations as now existing some sueTT agency as I have relorred to should be created to consider this question individually with each Government. As heretofore, the President is prepared to recommend to Congress that it constitute tho agency to examine the whole subject. “As to the suspension of the instalment of the British debt due ou December 15, which is one of the objectives of your Note, no authority lies within the executive to grant such an extension and no facts have been placed in our possession which could be presented to Congress for favorable consideration. Such importance is attached by our Government and people to the maintenance of the original agreements in full by the payment on December 15 as to far outweigh any reasons now apparent for its suspension, and by such payments the prospects of a satisfactory approach to the whole question, in my opinion, will be greatly increased.

BRITISH CHANCELLOR’S

COMMENT

'The subject of the United States Note was referred to in Birmingham by Mr. Neville Chamberlain, who said the decision which must be taken was one of tlic most difficult and delicate which it had ever fallen to the lot of any Government to take for years. The policy of tho country with regard to both reparations and wav debts had been that all should be wiped out. They went to Lausanne and there came to certain agreements that all reparation payments should be suspended. “Wo never contemplated a state of things in which we might be asked to make payments equivalent to another shilling in tho pound on our income tax, while at the same time wo were receiving nothing from our debtors.” he declared. ‘/That alone, from the point of view of justice and the possibility of maintaining our‘industries, would' be absolutely insufferable.”

PRIME MINISTER’S EXPLANA

TION

The IVimo Minister, Mr. Ramsay MacDonald, speaking at Retford, said: “After Lausiuino we approached America and asked her to join in studying the whole question of war debts. We asked for no cancellation or reduction, and asked for nothing but that the legal debt payment should be postponed while views were exchanged. Wo believed the suspension would bo good business for all nations, including America. We, discussing the situation rationally, deprecate a passionate controversy on either side of the Atlantic, and believe that if a real effort is made together a solution can be found, enabling the December 15 payment to be passed and the matter further examined.” In the House of Commons, Air. .T. Maxton, in the Address-in-Reply debate, said that when Ministers talked of the dangers of war they never looked across the Atlantic, and failed to realise that the Ottawa agreement was a challenge to the world, particularly to the United States. He hoped the Government would recognise that America’s stiff-necked debt attitude was not unconnected with the Ottawa, decisions. A SUGGESTION OPPOSED (Klee. Tel. Oopyriftlit—United Press Assn.) (Received Nov 26, 2 p.m.) WASHINGTON, Nov. 25. Mr. Hoover’s suggestion that the foreign Governments might, be permitted to pay tlm war debts in depreciated currency was opposed to-day by Senator Ho rah. chairman of the Senate Foreign Relations Committee, as “a diluted form of moratorium.”