U.S. DEBTS NOTE.

Star (Christchurch), Volume LXVI, Issue 20331, 14 June 1934, Page 1

U.S. DEBTS NOTE.

Suggestion for British Payment. WILL CONSIDER ADJUSTMENT. United Press Assn.—By Electric Telegraph—Copyright WASHINGTON, June 12. Replying to the British war debts Note of June 4. the United States Government to-night suggested that offers would be considered for an adjustment of the debt or repayment in goods or services. fThe Note to Britain makes no reference to any possible goods or services which might be accepted in lieu of cash. France’s official notification of default was received to-day. It is now believed that only Finland will pay in full on June 15. Italy will perhaps make a token payment. The United States Note, which was handed to the British Ambassador, Sir Ronald Lindsay, by the Secretary of State, Mr Cordell Hull, set forth three points in reply to the British Note. They were: (1) Britain would have to pay only the amount of the June 15 instalment to avoid being considered in# default under the Johnson Law. (2) There was no connection whatever between the debt owed to the United States by Britain and those owed to Britain by other countries. (3) The United States Government would be glad to entertain proposals for either the adjustment of the debt or payment in goods and services. The Note stated that the British Government undertook to borrow under its own name and on its own credit and standing, and that repayment was not contingent upon the fate of debts due to the British Government. After explaining this, the Government interpreted the recent British Note as indicating that the British Government did not intend to make any further payments until the United States had scaled down the debt to a point acceptable to Britain. The Note said: “Should his Majesty’s Government wish to put forward proposals for the resumption of payments this Government would be glad to entertain and discuss them informally. For instance, no proposal has ever been presented to this Government looking toward payments in kind to an extent that might be found mutually practicable and agreeable, and any proposals of this or a similar nature which promise mutual benefit will be carefully considered for eventual submission to the American Congress.”’ The Note concluded with a quotation from President Roosevelt’s recent message to Congress in which he said that the United States had no desire to overburden her debtors, but that it was in a just position to ask that substantial sacrifices be made to meet these debts.

The Note said that the United States was aware of the heavy wartime expenditures by Britain, the burden of taxation borne by the British people and the transfer difficulties involved, as outlined in the British Note, but added that it was unable to concur.

PAYMENT IN GOODS

Mr Roosevelt Explains Altitude in U.S.A.

(Received June 14, 12.30 pm.) WASHINGTON, June 13.

The United States is willing to consider payments in goods by countries owing war debts only on a partial basis, President Roosevelt declared today when discussing the Note to Britain pertaining to the payments due on Friday. Mr Roosevelt emphasised that the Note was simply a reply to the British communication pointing out a way of payment rather than making an offer.