THE BRITISH REPLY

Poverty Bay Herald, Volume LIX, Issue 17948, 28 November 1932, Page 5

THE BRITISH REPLY

CABINET CONSIDERATION LOOKING TO THE FUTURE DRASTIC REVISION NEEDED (Received November 28, 11 a.m.) LONDON, Nov. 27. Mr. MacDonald and the other Ministers are busy to-day preparing a draft reply to the United States. This will be ready for the Cabinet oil Monday. It - is believed that the reply will be an impressive document, practically a manifesto which it is hoped will resultit; a modification of America’s attitude. It is understood that the Government recognises clearly that the present issue is not the debt itself, but the question of the December payment. It holds strongly that payment will prove disastrous to payer and receiver alike. Best City opinion stresses the fact that a moratorium is only a subsidiary issue, and unless it is followed by drastic debt revision, Britain will probably ,be compelled to default in 1933, and Germany will force the issue by declaring a complete moratorium. The Morning Post says: —“.Tt has been suggested in certain quarters that Britain must default because she cannot pay. That would be simply ludicrous if not so mischievous. However inexpedient payment will be in the general interest, a plea of incapacity would deceive no one here, still loss our creditors in America, but if between now and December 15 America can be dissuaded from the course indicated in Mr, Hoover’s Note, so much the hotter for everybody, but if not, default cannot T-merit a moment, 's consideration. ’ ’