EFFECT OF DEBT PAYMENT

Taranaki Daily News, 15 December 1932, Page 5

EFFECT OF DEBT PAYMENT

THE LAUSANNE AGREEMENT QUESTIONS ASKED IN HOUSE PAYMENTS FROM FRANCE FURTHER REPLY TO STATES British Wireless. Rugby, Dec. 13. A statement regarding the war debt payments and their relation to the Lausanne agreement was made in the House of Commons to-day by the Chancellor of the Exchequer, Mr. Neville Chamberlain. , He was asked by Mr. Winston Cnurchill for an assurance that the Government would in no circumstances consent to preferential discrimination of France and Italy in favour of their war debt payments to the United States as against their payments of similar debts due to Britain, and whether he would demand equality and similarity of treatment for Britain from these two countries in order to prevent all the payments by all countries to the United States on December 15 being made at the sole expense of Britain. Replying, Mr. Chamberlain said the letter which he addressed to the French Finance Minister at Lausanne in July, 1932, stated that the United Kingdom Government would be glad, if it were possible', to cancel the French war debts as part of an all-round cancellation, but in the actual circumstances it would not enter into any definite commitments modifying the existing war debt funding agreement. It agreed, however, that the annuities due under the agreement should be suspended until the coming into force of the Lausanne agreement or until it was decided not to ratify it.

HOPE FOR SETTLEMENT. The British Government earnestly trusted that the examination of the whole question of war debts in relation to world recovery which the United States Government had agreed to, would result in a settlement which would enable the Lausanne agreements to be ratified. Meantime, the British Government considered that it was of the utmost importance that no decision should be taken at present to the effect that the Lausanne agreement could not, be ratified. Consequently the suspension of reparations and war debts would remain in force, but all the rights of the British Government under the existing agreements would be integrally preserved. Answering a question as to whether France had agreed to pay Britain £12,000,000 a year, irrespective of the payments from Germany, the Chancellor of the Exchequer said that the agreement with’France provided tha’. the payments were due to Britain irrespective of any payments received from Germany by France. He added: “We are entitled and .we intend, if so able, to make a separate settlement with the United States.” Following a Cabinet meeting .this morning a Note was addressed to the United States explaining that it was not the intention of the British Note of December 11 to touch upon a matter affecting the constitutional position of the United States Government. It should, therefore, be read solely as relating to the British Government’s own position, which it had taken after mature consideration, namely, that it was prepared to make the paymerft on December 15 in the light of the considerations set out in. the Note of December 11, andrthat it must reserve the right to revert to these considerations in an examination of the whole question, to which the United States Government had agreed.

ATTACK ON MR. HOOVER MOTION FOR IMPEACHMENT HEAVY DEFEAT IN HOUSE By Telegraph—Press Assn.—Copyright. Washington, Dec. 13. The House of Representatives, by 361 votes to 8, to-day rejected a move by Mr. McFadden (Republican, Pennsylvania), for the impeachment of President Hoover on the ground that he betrayed the country in his war debts moratorium. Mr. McFadden said the President had usurped, the powers of Congress in proclaiming his debts moratorium. He contended that the action had led to the present situation involving the United States and foreign debtors. Mi'. McFadden has long been a foe of the administration. The Pennsylvania Republicans in the House later demanded the resignation of Mr. McFadden as secretary of their delegation.

EACH UNDERSTANDS OTHER. NO FURTHER AMERICAN NOTE. Washington, Dee. 13. The United States will isend no reply to the British Note accompanying the war debt payment on Thursday. After repeated conferences between President Hoover, Mr. H. L. Stimson, Secretary of State, and Mr. Ogden Mills, Secretary of the Treasury, the impression in informed quarters was distinctly that Britain and the United States now understand each other’s position. No reason is seen in official circles for the United States to reject the payment expected on Thursday. The London Morning Post’s political writer says that it is expected that the British reply accompanying the formal payment will merely record the differing views of the Governments. What had hitherto been a sporadic debate on the debt question took a dramatic turn when Mr. McFadden introduced his motion to impeach Mr. Hoover. He specifically charged the President with “high crimes and misdemeanours,” chiefly in connection With the war debts arrangements. Mr. Hoover was also charged that he appointed Mr. Andrew Mellon Ambassador to Britain while he was under a resolution charging an impeachment. Mr. McFadden denounced Mr. Hoover’s handling of the bonus army, which was probably responsible for the six votes for his motion.