PAY OR DEFAULT

Taranaki Daily News, 26 May 1933, Page 7

PAY OR DEFAULT

WAR DEBTS TO AMERICA WHAT IS BRITAIN’S POLICY? LORD SNOWDEN’S ATTACK MR. MACDONALD CRITICISED FEARS FOR CONFERENCE By Telegraph—Press Assn.—Copyright. ' . <■ London, May 24. Lord Snowden, in the House of Lords, requesting a statement of the Government’s policy for the World Economic Conference, made a surprising and unexpected attack upon Mr. Ramsay MacDonald. He described the Prime Minister’s reply to a similar demand in the House of Commons as absolutely staggering. “I know not whether this is due to the Government’s having no policy or Mr. MacDonald’s constitutional inability to make a clear statement,” he said. “I suggest that the Cabinet look into the case of the Prime Minister. It is a positive danger to the country that its affairs should be in the hands of a man who every time, he speaks exposes his ignorance or incapacity.” Referring to Mr. MacDonald’s visit to Washington Lord Snowden said that the MacDonald-Roosevelt joint statement was a mere repetition of platitudes. The Prime Minister might just as well have saved the country the expense of his visit. The joint statement’s references to commodity prices only showed ignorance of the nature of the problem. It dismissed excessive tariffs,. quotas and exchange restrictions, which were the fundamental primary causes of the world depression, in less space than was devoted to the silver question. REPUDIATION ABHORRED. “We have either to pay or default,” said Lord Snowden. “I have always viewed with abhorrence the very idea of repudiation or default. Unless the British Government enters the conference with a clear-cut and well-thought-out practical plan we might abandon hope of any practical successful result., The Lothian measure for a reduction of tariffs and stabilisation of currencies could not be discussed or decided upon without considering the consequences of international debts, private and public. “International indebtedness is by far the most formidable factor which has produced the present crisis. The conference is inexprably and inevitably doomed to failure unless debts are taken into account. We are faced either with cancellation or bankruptcy on a gigantic scale, or you must restore the conditions of trade permitting international lending to begin again. These are the only conditions on which prosperity can be restored.” What was to be the Government’s policy at the World Conference when the tariff truce suggested for the duration of the conference was accepted by Mr. MacDonald only with reservations amounting practically to rejection? asked Lord Snowden. While the World Conference would begin by denouncing tariffs, the British Government and its Tariff Advisory Committee would be engaged preparing further increases in Britain’s tariffs. “Mr. MacDonald has suggested that the only tariffs to be reduced should be those which are more than sufficient for national economic protection. Every tariff in the world is regarded as a necessary national and economic protection. If the World Conference acts upon Mr, MacDonald’s principle it will be useless even discussing the tariff question. “WOEFULLY BUNGLED.” “The joint statements do not say a word about the American debt question, which has been woefully bungled and mismanaged during the last year. Mr. Hoover’s magnificent gesture would have been of great benefit if the opportunity had been taken during the moratorium to come to a definite settlement of the difficult question. “Nothing has been done about our next instalment, due three, weeks hence. Are we going to pay or default? “The reason the joint statement says nothing about the war debt is that it is a matter for Congress, which is very jealous of its rights. If Mr. Roosevelt made a declaration no Congress would reject it. Mr. MacDonald said they were going to talk about debts, but nobody is coming from America competent to deal with the question. “I do not believe that the United States will make a definite suggestion about the war debts until it sees the outcome of the Disarmament Conference. If America gets something out of that conference Mr. Roosevelt is likely to have the courage to approach Congress on the debt question and suggest’that the gain from a reduction of armaments be offset by a reduction of the war debt,” concluded Lord Snowden. The Earl of Stanhope (Under-Secretary for War) replying, said he regretted Lord Snowden’s attack on his old friend and (colleague Mr. MacDonald“We on the Government benches show no sort of hostility to Lord Snowden,” sLord Stanhope said. “I hope the attack 'on Mr. MacDonald is only a temporary ■■effervescence.” Just as Lord Snowden himself had to do before The Hague conference, Lord Stanhope said, he could reply to Lord Snowden’s request only in general terms. The conference would begin with great advantages. Its work had been carefully prepared by a preparatory committee and by President Roosevelt’s interviews with representatives of various countries. The Government had been in touch with America and France in order to try to thrash out something which could be settled at the conference. The situation in the world was so critical that the Governments would be compelled to overcome difficulties winch the previous conference had found insuperable.