DEBTS SITUATION

Southland Times, Issue 21895, 22 December 1932, Page 5

DEBTS SITUATION

PROPOSED REVIEW DEMOCRATS UNLIKELY TO CO-OPERATE MR HOOVER MAY ACT (United Press Assn.—Telegraph Copyright.) Washington, December 20. The Democrats are clearly shying away from active participation in Mr Hoover’s proposal for a commission to carry out a review of war debts, and he has elected at Capitol Hill to go ahead on his own initiative. Mr Collier, chairman of the House Ways and Means Committee, said today; “I am willing to have the Ways and Means Committee consider the President's message, but I am confident it will not consider it favourably.” He is opposed to Congress setting up any additional commissions to be appointed by Mr Hoover shortly before his retirement, but said he had no objection to the President setting up another of his own. “I am confident this Congress is opposed to creating another debt funding commission,” Mr Collier said. The proposition would not be laid before his group for consideration, at least until January. Washington, December 20.

President Hoover and Mr Roosevelt are understood to have already exchanged views. Mr Roosevelt’s attitude is described as sympathetic, but he is firm against dividing the responsibility with the President. The friends of Mr Roosevelt are convinced that he will stand by the previously announced policy that debt negotiations should be conducted through the regular diplomatic channels and separately with the debtor nations.

Senator Swanston (Virginia, Demo-’ crat), who is a member of the United States Arms delegation and who has been regarded as perhaps the first choice of the President for a place on the debts agency, said: “The power to negotiate all foreign relations is left with the President under the Constitution, and the methods he adopts have been left entirely with him under law and custom. I think a situation has developed that makes it wiser for the United States to conduct separate negotiations. The United States is really the only creditor nation. Joint negotiations would only bring a solid front against us.” DEBT COMMISSION MR ROOSEVELT’S OPPOSITION. EXISTING AGENCIES SUFFICIENT. (Rec. 7.0 p.m.) Washington, Dec. 20. Although the communications have not been published, the Washington correspondent of the New York Times to-day learned the essential points of telegrams exchanged between Mr Hoover and Mr Roosevelt regarding co-oneration in the formation of a debt commission. Mr Roosevelt’s reply today was friendly and in “some respects helpful in tone,” but rejects the commission idea as opposed to his own belief that the existing diplomatic agencies are sufficient for the purposes of re-examination. He is also unsympathetic to the suggestion of tieing debt examiners with the delegation to the Economic and Disarmament Conferences, stressing the view that debts are a separate matter. But he promises to “do nothing to retard or hamper an immediate re-examination.” He passively objected to Mr Hoover’s ostensible exclusion of some debtor nations, apparently wishing to leave the door open for negotiations with France. Mr Hoover is now faced with a decision on the question whether he will proceed on his own initiative. It is now thought likely that he will be governed by Britain’s action. If she requests an immediate review he could not well deny it, but if Britain prefers to await Mr Roosevelt’s inauguration Mr Hoover will probably drop the matter. BRITAIN AND AMERICA DEBT DISCUSSIONS NEXT MONTH. QUESTION OF GOLD STANDARD. (Rec. 11.35 p.m.) London, December 21. It is expected that debt talks between London and Washington will begin some time in January, but the diplomatic correspondent of the Daily Telegraph stresses that they can only be in the nature of exploration. The feeling is growing that here it may be useless to call the World Economic Conference until a debt settlement has been reached, at least between America and her principal debtors. Several commentators deduce from Mr Hoover’s latest message evidence of America’s anxiety to hasten Britain’s return fo the gold standard. It is understood that Britain is in no hurry to change, but the Washington Administration is determined to use every influence to speed its restoration. The Times, in an editorial, says: Mr Hoover’s apparent determination to initiate on his own responsibility, failing the co-operation of Mr Roosevelt and Congress, a discussion on the debts question will be whole-heartedly welcomed, as an agreement must be reached before June in order to avoid a crisis. A series of defaults would be disastrous to the countries concerned. The message shows a broader and more realistic attitude than earlier messages. This may indicate a clearer American grasp of economic realities, but a striking omission is any allusion to tariffs and other measures preventing debtor countries paying debts normally by goods services. FRENCH ATTITUDE NO CHANGE ANTICIPATED. (Rec. 11.35 p.m.) Paris, December 21. The new Ministerial declaration is not expected to differ as regards either debts or the general policy from the policy of M. Herriot. Parliamentary opinion is still opposed to the debt payment, and the hostility is likely to continue unless unforeseen developments show that it would be advantageous to France to reverse her attitude. BOLD STATEMENT MR HOOVER’S MESSAGE. London, December 20. Mr Hoover’s message to Congress is featured by all the papers. The Daily Telegraph describes it as remarkably bold, showing how the better mind of America has been working. Mr Hoover in this message, as in the previous one, is shown as being completely cured of the delusion that his country is able to stand on its own feet in happy detachment from the troubles of the rest of the world. LITTLE ENTENTE NO FURTHER DEBT PAYMENTS. Belgrade, December 20. The Little Entente has decided to make no further war debt payments to Britain and the other creditors unless Germany resumes the payment of reparations,