“LUMP SUM BASIS”

Taranaki Daily News, 10 February 1933, Page 3

“LUMP SUM BASIS”

SETTLEMENT OF WAR DEBTS.

LATEST TREND OF OPINION.

By Telegraph—Press Assn.—Copyright. London, February 8. It has been provisionally decided that Mr. Ramsay MacDonald will lead the debt delegation to the United States. It is regarded as probable that a. new moratorium will be sought pending a settiement, which it is increasingly thought will take the form of a final capital payment raised by a loan on the American market. , , Widespread interest has been created by London despatches to Washington describing the prospective British war debts settlement plan on a lump-sum basis, involving amounts from L,50T,000,000 to 2,000,000,000 dollars. For some time reports have been current that Britain will make a lump sum offer for a final settlement, but usually the sums mentioned have been-under a billion dollars, or more in line with the Lausanne agreements. . . In each 1 case, however, official Washington has maintained the strictest silence, and tliat is true again to-day. Observers are inclined to place stress on the fact that reports of the British offer came at the same time as Sir Ronald Lindsay went into conference with Cabinet Sir Ronald Lindsay was supposed to have with him a vast amount of information direct from Mr. F. D. Roosevelt. A message from Washington states that a special committee of the International Chamber of Commerce has issued a report which will be distributed to its 45 members in var?"'",~ countries. The report consists of recommendations proposed as a basis for negotiations at the World Monetary and Economic Conference. ■ .

.The report suggests the readjustment of international indebtedness, both of a public, and a private nature, and the setting up of “economic tariff groupings” of countries for the purpose of reciprocity. The report deals at great, length with the cause and cure of the depression, including political; disturbances, economic disharmonies and trade barriers.

In connection with war debts it says: “International confidence will not be secured until the problem of the reparation of inter-governmental debts is satisfactorily and mutually solved at Lausanne and a solution of reparations found. It needs to be completed by an equally satisfactory solution of the problem of inter-governmental debts.” Representative Rainey (Illinois), expressed to newspapermen the opinion that “American people will never stand for the British lump sum proposal, whereby Britain would cut three-fourths of her debt away.”