PAYMENT EXPECTED

Poverty Bay Herald, Volume LIX, Issue 17957, 8 December 1932, Page 7

PAYMENT EXPECTED

WAR DEBT INSTALMENT FRANCE IN DILEMMA LONDON, Dec. 7. The Daily Telegraph says it is no secret that M. Herriot is deeply concerned at the possibility that Britain and Italy may decide to pay America on December 15, whereas the French Chamber will in all probability decide not to pay. M. Herriot is anxious to know whether, if France pays America Britain will expect payment simultaneously from France; while it France does nol pay America, will Britain still expect payment from Franco in order to facilitate her own payments to America in accordance with the Balfour formula? The Daily Herald says that Mr. Macdonald is informing M. Heriot that Britain will not expect France to resume payments. M. Heriot is threatened with defeat in the Chamber in Friday’s war debt debate, but the visit of Mr. Macdonald and Mr. Chamberlain may save the situation. The Times says: “Mr. Hoover’s message has finally dispelled any hope that the United States will not insist on payment on December 15. The only alternative to payment in goods and service is to pay in gold. This will deplete our gold reserve, depreciate the gold price of commodities and tbo dollar value of the pound, and close the door for a long time to any possibility of Britain’s return to the gold standard. The consequences, however, will not be so disastrous as would be default. By the time the next payment is due the whole situation may bo changed. There is every reason to believe that Mr. Roosevelt will realise the necessity of international co-operation. The outlook, therefore, is not completely discouraging.’’