WAR DEBTS ISSUE

Southland Times, Issue 22041, 14 June 1933, Page 7

WAR DEBTS ISSUE

AMERICA SILENT BRITISH PROPOSAL AWAITED PARTIAL PAYMENT? (United Press Assn.—Telegraph Copyright.) (Rec. 7 p.m.) Washington, June 12. Although officially silent as to the war debts issue placed before the London Economic Conference, the Roosevelt Administration to-night was represented as awaiting a formal British debt proposal which is reported to be an offer to pay a portion of the instalment due on Thursday. Accompanying the offer is expected to be a request for an extensive downward revision of debts. Meanwhile, speculation has increase-’ as to the attitude of Mr Roosevelt Toward accepting partial payment. It is known that the legality of such action has been given close study by the President and his advisers. Any request for extensive debt reduction is considered as certain to arouse an immediate emphatic protest from members of Congress, whether- it is still in session or not. CABINET MEETINGS DESPATCH FROM WASHINGTON. QUESTION OF TOKEN PAYMENT. (United Press Assn.—Telegraph Copyright.) (Rec. 7 p.m.) London, June 12. Information reaching Mr MacDonald during the dinner to the conference delegates at Grosvenor House caused him to call a special Cabinet meeting immediately afterwards. It is understood that the receipt of a despatch from the British Ambassador at Washington regarding war debts occasioned the decision. Mr Neville Chamberlain will make a statement in the House of Commons to-morrow afternoon. The Daily Telegraph says that Cabinet has considered a despatch from Sir Ronald Lindsay indicating that Mr Roosevelt is unable to signify general acceptance of token payment. An earlier Cabinet meeting had definitely agreed that Britain cannot pay the full instalment while receiving nothing from her debtors. The purpose of the second Cabinet meeting was to decide the terms and not for expressing the intentions of the Government. The Times says that some leading Ministers favour the complete suspension of the June payment if token payment is not accepted. The diplomatic correspondent of the Daily Telegraph says that Mr MacDonald’s raising of the debt issue in his speech at the conference caused a surprise and even some resentment among the American delegation, but his initiative was approved by other circles. MENTION OF DEFAULT. (United Press Assn.—Telegraph Copyright.) (Rec. 9.45 p.m.) London, June 13. The political correspondent of the News-Chronicle says that Cabinet will default if Mr Roosevelt refuses token payment. NO AGREEMENT FEVERISH NEGOTIATIONS. (United Press Assn.—Telegraph Copyright.) (Rec. 1.10 a.m.) London, June 13. Though the Cabinet meeting lasted till midnight the members again assembled at 9 a.m. and considered the war debt position. It is believed that further urgent exchanges with Washington will take place prior to Mr Chamberlain’s statement in the House of Commons this afternoon. The crisis is overshadowing all else. There was little sign of an agreement at mid-day. Mr Cordell Hull postponed his speech at the conference as a result of the Washington despatches.

MUST BE SETTLED MR MACDONALD’S DECLAMATION. (United Press Assn.—Telegraph Copyright.) London, June 12. One of Mr MacDonald’s best, declamations, undemonstratively received, at the opening of the World Conference, was that war debts must be settled; indeed taken up immediately and a seal nut on Lausanne’s labours. Mr MacDonald trenchantly condemned selfsufficing economic nationalism and again and again affirmed, “We must not fail.” He was equally insistent on the need for speedy relief.