AUSTRALIA'S WAR DEBT

Taranaki Daily News, 19 February 1931, Page 5

AUSTRALIA'S WAR DEBT

NO PROPOSAL FOR REVISION

CHANCELLOR'S EXPLANATION

QUESTION BY LABOUR MP. INTERVENTION BY SPEAKER By Telegraph—Press Assn.—Copyright. London, Feb. 18. The Chancellor of the Exchequer, Mr. P. Snowden, had a busy quarter of an hour in the House of Commons answering questions in relation to the abatement of Australia’s war debt to Britain. Asked what proposals had reached him for a revision of the terms, Mr. Snowden replied: “I have not received any communication thereon.’’

Mr. G. Le M. Mander (Labour): “Will you point out tu the Australian Government that if the question arises Britian is in no position to make any concession?’’

Sir N. Gratton Doyle (Conservative): “Will you also remember that these questions are most mischievous?” Mr. Snowden did not reply. Mr. E. F. Wise (Labour) asked as to the relative receipts of war debts froui the Allies and the Dominions, also Britain’s payments to America.

Mr. Snowden, amplifying his earlier reply, said: “Our payments to the United States for the year 1931-32 amount to £33,550,C00, and our receipts from the Dominions total £7,653,000.” Mr. Wise: “Are we to assume that the Balfour formula regarding the repayments of the Allied war debts is not included in the amounts paid to us from the Dominions? If ezery pound paid for war debt is a pound for Australia to purchase in this country, would it be worth while, in view of the unfortunate position of Australia, to reconsider the basis of repayments?” The Speaker here intervened, and the question was not answered. Mr. Wise then sought a comparison of percentage in the Allied repayments and British payments to America in 1931-32. Mr. Snowden said: “Our payment .to America is 3.64 per cent, of the capital sum outstanding at the beginning of the year. The corresponding figure for Australian payments to Britain is 6.96 per cent. It is* impossible in the case of the French and Italian war debts to Britain to express the distinction between capital and interest." Mr. Wise: “Is it not a fact that we are expecting Australia to pay four Or five times as much per annum correspondingly as France and Italy pay us?” Mr. Snbwden: “What we expect from Australia and what Australia is paying, us is the sum due under the Anglo-Australian agreement. The portion of the Note on which the debt repayment settlements were made provided that there should be a cor* rspondonce between what we pay America and what we receive from our debtors. This has been fulfilled.” Mr. Wise asked: “Is it not a case that we on the balance receive £5,000,000 or £7,000,000 more than we pay America?” Mr. Snowden: “I do not think so. Of course, such correspondence varies from year to year.” Replying, further to Mr. Wise, Mr. Snowden said that Australia Would . receive £826,000 on account of reparations in 1931-32. A stralia was due to pay Britain £5,548,890 on the war debt in the same period.