GOLD MERELY EAR-MARKED

Taranaki Daily News, 13 December 1932, Page 7

GOLD MERELY EAR-MARKED

NO SHIPMENTS MEANTIME WILL AWAIT INSTRUCTIONS i. LOAN FROM FRANCE DENIED. REACTION TO STATES’ REPLY By Telegraph—Press Assn.-Copyright. Rec. 8 p.m. London, Dec. 11. Britain’s decision to pay the war debt instalment in gold means that gold will be earmarked in the vaults of the Bank of England awaiting America’s instructions. In the case of two friendly nations no . actual transfer takes place. The rumour that France is lending Britain the gold to make the payment is officially denied, and the suggestion that payment involves a second Budget is similarly groundless. The Daily Telegraph’s diplomatic correspondent says the decision not to demand payments shortly due from France, Italy and other allied debtors raises the question whether the Dominions, which are also liable for early payments, will be granted the same further respite. Mr. R. B. Bennett, Canadian Prime Minister, on his arrival in London to-day was questioned whether he brought a Canadian offer to help Britain over the war debts difficulty. He replied that Canada 'was not concerned with war debts. “Canada incurred a war debt of 2,000,000,000 dollars, but we have no inter-Governmental debts in this connection, either to Britain or to America,” he said. “We abandoned all claim to reparations at Lausanne. The whole of Canada’s war bill is now part of our funded debt.’*

Early editions of London newspapers give prominence to the fact that Britain D going to pay but with reservations. The latest editions, however, emphasise on the contrary that- the truth is that “the United States rejects the British offer.” Details of this note arrived too late for real criticism and the text has riot yet been circulated by the British Foreign Office. The Times says the very prompt American reply naturally pointed out that the United States Treasury had no authority to accept payment except according to the existing agreement. “But,” adds the Times, “the British Government has done right in refusing to make default. It is equally dear that it has done right in coupling the announcement witha plain intimation that it regards the payment as a step in a final 'settlement.”