WAR DEBTS

Southland Times, Issue 21576, 14 December 1931, Page 7

WAR DEBTS

AMERICA’S ATTITUDE. CALL FOR REDUCED ARMAMENTS. (United Press Assn.—By Telegraph—Copyright.) Washington, December 11. A reduction in European armaments was demanded to-day by Senator Watson (Indiana), the Republican leader in return for a revision of the war debts as suggested by President Hoover. “Our people,” he declared, “will never be satisfied to scale down the war debts, much less forgive them, unless Europe shows some disposition to reduce her armaments.” Senator Watson said his stand coupled with the opposition of Chairman, Senator Borah, is expected to check early action on the President's proposal for a revival of the war debts commission. It is obvious that it is the intention of the Congressional leaders to hold up this move, pending action in Europe at the February Disarmament Conference. Meanwhile it has become clear that the administration is not disturbed bj' the fact that Congress will not have ratified the Hoover moratorium by December 15 when the payments fall due. The Under-Secretary, Mr Mills, of the Treasury, said to-day that the lack of an immediate ratification would be regarded merely as a technicality and foreign Governments would take no steps towards making payments because of it. CONFERENCE BETWEEN LEADERS. Washington, December 11. Alarmed at the uprising against President Hoover’s suggestion for a reconsideration of the war debts the Under-Secretary, Mr Mills, to-day arranged for a conference with the leaders of both parties in Congress to go over the situation on Saturday. PAYMENTS DUE THIS WEEK CLAIMS WILL NOT BE PRESSED. (Rec. 5.5 p.m.) Washington, December 12. A formal understanding was reached to-day between the administration and Senate leaders that foreign governments would not be considered at fault if their war debts payments due next week were not paid pending formal ratification of the one year moratorium. The Under Secretary, Mr Mills, discussed the situation with the leaders of both parties in the Senate. He said that Mr H. L. Stimson will deal with foreign governments respecting their payments but does not expect the secretary to make any formal statement on the question. Representative Rainey, the Democratic leader, promised that the Democrats will not make the moratorium a party question. Mr Rainey said he would vote against it, but the Democrats planned to leave it to individual members as to their own position. He saw opposition from both Republicans and Democrats. However, the House would act on the moratorium before Christmas and send it to the Senate before Christmas. PAYMENT BY SILVER BILL TO GO BEFORE SENATE. (Rec. 5.5 p.m.) Washington, December 12. Mr Smoot, Chairman of the Senate Finance Committee, informed Mr Hoover today that he would introduce a Bill on Monday to permit of the payment of foreign debts in silver at the market value.