DEBT PAYMENTS

Southland Times, Issue 21894, 21 December 1932, Page 7

DEBT PAYMENTS

NEW ZEALAND’S OFFER ACCEPTANCE BY BRITAIN UNLIKELY POSITION EXPLAINED (United Press Assn.—Telegraph Copyright.) (Rec. 7 p.m.) London, December 19. It is understood that the Government is to-morrow despatching a reply to New Zealand’s offer to resume war debt payments, indicating deep appreciation of the Dominion’s magnificent spirit, especially in view of New Zealand’s Budget problem, but likely to suggest that the question remain in abeyance pending negotiations with America. The position is that Britain neither asked nor expected the dominions at present to resume payments. The situation is precisely as cabled earlier in the month and it is apparently necessary to reiterate it owing to cabled suggestions that Australia is also contemplating a resumption of payments.

The crux of the situation is Lausanne, which some dominion opinion confuses with the Hoover moratorium, notably New Zealand’s offer. It was agreed at Lausanne that the dominions would not be treated less generously than foreigners if the question of payment ' arose. Britain is not desirous of disturbing the Lausanne agreement owing to repercussions in Europe. She hopes for an early discussion with America, pending which the Lausanne agreement must continue. DOMINION PAYMENTS NOT EXPECTED. (Rec. 1.25 a.m.) London, December 20.’ The indications at Whitehall are that the dominions will not be called on to resume debt payments to Britain while foreigners are exempt under the Lausanne agreement. OFFER APPRECIATED ANNOUNCEMENT CHEERED. (British Official Wireless.) Rugby, December 19. In the blouse of Commons Mr J. H. Thomas announced amid cheers the New Zealand Government’s offer to resume liability for the war debt payment to Britain if the suspension granted following the Hoover moratorium was made on the assumption of a continued moratorium by the United States. He said that the British Government was most appreciative of the New Zealand Government’s action in view of its own difficulties and responsibilities and had conveyed its appreciation. The matter- was receiving the Government’s attention. The British Press expresses warm appreciation of the New Zealand Government’s action. PRESS COMMENT ACTION COMMENDED. (Rec. 11.30 p.m.) London, Dec. 20. The Morning-Post, commending New Zealand's honourable debt gesture, remarks that there is no war debtor more deserving of relief and none readier to make every sacrifice rather than dishonour its bond. The Times says: It is an unselfish offer from a dominion gallantly struggling through the depression. The same attitude is taken by Australia, although they abstain from making a formal offer pending a review of the whole situation. The attitude of these dominions is welcomed as another proof of their high courage and generous comradeship. AUSTRALIA’S POSITION NO IMMEDIATE ACTION. (Rec. 9 p.m.) Canberra, December 20. New Zealand’s offer to resume its liability for war debt payments in no way involves Australia in immediate action. The next Australian payment does not fall due until March 31. Official circles express the opinion that owing to uncertainty in the world position and the possibility of some future arrangement between Britain and the United States, any decision upon the subject at the present would be premature. CANCELLATION INEVITABLE OPINION OF MR W. M. HUGHES. (Rec. 9 p.m.) Sydney, December 20. Mr W. M. Hughes upon his return from England said: “No matter w-hat shape the immediate result of default by France, Belgium and other nations may assume, cancellation of war debts is inevitable. I consider, in the face of the British Notes and the attitude of the defaulting nations, that the United states will be compelled to review its position.”