STATES PUZZLED

Taranaki Daily News, 30 November 1932, Page 7

STATES PUZZLED

THE OPTIMISM OF EUROPE

HOPE TO POSTPONE DECTS

HINT OF DISAPPOINTMENT

NO JUSTIFICATION SEEN

PRESIDENT HAS NO POWER

By Telegraph—Press Assn.— Copyright.,

Washington, Nov. 28.

In view of the unwillingness of the United States to extend the war debt moratorium, indications are that the debtor nations will meet with disappointment in their persistence that some means of postponing the December 15 payments could be found. The administration is puzzled by the degree of optimism which seems to prevail in the European capitals despite the Notes , sent to Britain, France, Belgium, Poland and Czecho-Slovakla advising them to meet their obligations. In almost identical terms the State Department informed Poland and Czecho-Slovakia that the President had no authority to extend the moratorium and no facts had been placed “in our . possession which could be presented to Congress for favourable consideration.”

BRITAIN DRAFTING REPLY

“AN UNANSWERABLE CASE’

QUESTION ASKED IN HOUSE

British Wireless. Rugby, Nov. 28. The Cabinet Ministers were, busily engaged yesterday and will be further occupied to-day considering the terms of the second Note to be despatched to the American Government on the war debts issue. . It is realised that President Hoovers invitation to state in more precise terms the reasons which led the British Government to suggest the suspension of next month’s instalment of the war debts payment has given an opportunity to make a clear and explicit statement of ■ the grounds for the conviction that it would be against the interests of the whole world, including the United States, to resume the debt payments at this moment. It is felt that an unanswerable case can be presented. Meanwhile the Government is taking all the appropriate measures to ensure that its action is supported by the nation as a whole. It should be noted that the Ministerial discussions at present proceeding are not concerned with the question whether the payment due on December 15 should or should not be made. That question has , not yet arisen. Mr. Hoover requires full documentation of Britain’s case, and it is being prepared as quickly as possible. It is-anticipated that the Note will be despatched to Washington within the next few days.

RIGHT TO POSTPONEMENT. The Financial Secretary to the Treasury, Mr. L. Hore-Belisha, asked in the House of Commons what amount of the debt due to the United States from Britain in December was interest, what amount constituted repayment of capital expressed in gold pounds, and whether under the existing agreement Britain had the right to postpone payment until a future date, stated that the instalment due in December was 30,000,000 dollars in respect of capital and 56,550,000 dollars in respect to interest. A payment in respect to capital could, under the existing agreements, be postponed for not more than two years, provided that not less than 90 days’ advance notice had been given. Such an advance notice ’had not been given in the present case. The United States Treasury might, under the agreement, waive such notices at discretion.

Asked whether the House of Commons would be consulted before any further payment of war loan interest was made, the Prime Minister, Mr. Ramsay MacDonald, said that if the requests for a discussion of. the .matter were made through the usual channels they would receive careful consideration, but it would not be in the public interest to have a debate at the moment. Mr. Montagu Norman, Governor of the Bank, of England, visited Mr. Neville Chamberlain, Chancellor of the Exchequer, and several Ministers and discussed the matter further at a meeting in the House of Commons.