HOUSE TO DEBATE DEBT

Taranaki Daily News, 14 December 1932, Page 7

HOUSE TO DEBATE DEBT

NO PARTY RESTRICTIONS BRITISH DEBT TRANSACTIONS COMPARISON WITH POWERS FRENCH AND ITALIAN DUES British Wireless. Rugby, Dec. 12. In response to a request by the Leader of the Opposition, Mr. George Lansbury, that a Government statement relative to the American war debt payment should be made in the House of Commons under conditions enabling the House to discuss it, Mr. Stanley Baldwin announced that the Government had arranged to devote Wednesday to a debate on the subject. An appropriate statement would be made, probably by the Chancellor of the Exchequer, Mr. Neville Chamberlain, said Mr. Baldwin. /The Government would not put down a motion and the House would have a perfectly free debate, enabling a discussion from every viewpoint. The Prime Minister, on reaching London from Geneva this aftemon, consulted his colleagues on the American reply to the British Note. It is anticipated that Cabinet will meet to-morrow, when the question whether a further communication will be sent the United States is expected to be considered. \ In writtc i replies to Parliamentary questions, the Chancellor of the Exchequer gave details showing that Britain’s receipts in war debts have amounted to £71,100,000 and in reparations to £121,300,000, making a total of £192,400,000. Payments to the United States for war debts amounted to £326,200,000, exceeding the receipts from war debts and reparations by £133,800,000. Mr. Chamberlain'said that if the British war debt to the United States had been from the outset settled on the same basis as the French war debt to the United States the amount which the British Government had already paid would exceed the amount due on such a basis by 795,700,000 dollars, and no further payments would be due until 1940. Similarly, if the British war debts had been settled on the basis of the Italian settlement, no further payment would be due until 1955.

If, however, the past payments were ignored and the future payments in respect to the actual capital debt now outstanding were made on the basis of the French settlement the amount payable by Britain on December 15 would be 22,000,000 dollars instead of 95,500,000 dollars. Similarly, if future payments were made on the. basis of the Italian settlement the amount payable would be 2,750,000 dollars instead of 95,500,000 dollars. . Approximately 29 per cent, of the British debt to the United States would have been paid off by the payments already made by Britain if the settlement had been on the same basis as either the French or Italian settlement. Under the existing settlement only 4 per cent, of the capital debts was repaid. REVISION AND DISARMAMENT. "U.S. MUST INSIST ON RELATION.” Rome, Dec. 12.. • The Osservatore Romano in an inspired article says: “The sacrifices demanded of America must not be disconnected from peace. War debts, reparations and disarmament are interdependent. If Europe insists on a revision of war debts because they cannot be dissociated from reparations, the United States must insist on a relation between the revision and - disarmament.” •? , i “WILL NOT NEED EMBARGO.” EFFECT OF DEPRECIATION. Montreal, Dec. 12. Sir Norman Angell, British author and economist, in an interview to-day stated: “Britain will not need to put a specific embargo against United States goods if the war debts payments continue, as the pound will depreciate still further, ana it will not be possible to buy American goods in the United Kingdom on account of their high prices.”