NEW BRITISH NOTE

Poverty Bay Herald, Volume LIX, Issue 17949, 29 November 1932, Page 5

NEW BRITISH NOTE

CABINET CONSIDERATION STATEMENT OF POSITION QUESTIONS IN COMMONS (British Official Wireless.) Hoc. noon. .RUGBY, Nov. NS. Cabinet .Ministers' were busily engaged vesterdny and will be further occupied to-day in considering the terms of the second note to be despatched to the American 'Government. It is realised that. Mr Hoover’s invitation to state in more precise -terms the reasons which led the British Government to suggest a suspension of next month’s instalment of the war debts payment gives an opportunity to make a clear ami explicit statement of the grounds for the conviction that it would -be against Uhe interests of the whole world, including the United States, to resume the debt payments at this moment. It is felt that an unanswerable case -can be presented. Meanwhile, the Government is taking all appropriate measures to ensure (hat its action is supported by the nation as a whole. It -should be noted that tin 1 Ministerial discussions at present proceeding are not concerned with the question of whether the paymentdue on December 15 should, or should not, be paid. That question has not. yet arisen. (Mr Hoover requires a. fuller documentation of. Britain’s case, and it is being prepared as quickly as possible. Mr -Montagu Norman visited the Chancellor of the Exchequer and several Ministers and discussed the matter further at a meeting in the House of Commons. POSTPONEMENT OF CAPITAL It is anticinat-ed that the note will bo dispatched to Washington within the next few days. The Financial Secretary to the Treasury was asked in the House of Commons what amount- of debt duo to tho United States from Britain in December was interest, and what amount constituted repayment of capital expressed in gold pounds, and whether under the existing agreement Britain had the right to postpone the payment of the latter until a future date.

Mr. Hoare Belisha stated that the instalment due in December was 30,000,CQO dollars in respect of capital and 65,550,000 dollars in respect of interest. The payment in respect of capital could, under the existing agreements, be postponed for not more than two years, provided that not less than 90 days’ advance notice had been given. Such advance notice had not been given in tno present case. The United States Treasury may, under the agreement, waive such notice at its discretion. Asked whether tho House would he consulted before any further payment of war loan interest was made, the Piimo Minister said that if a request for a discussion of the matter was made through tho usual channels it would receive careful consideration, but it would not be in the public interest to have a debate at the moment.