POSTPONEMENT OF ALL PAYMENTS FOR A YEAR

Wanganui Chronicle, Volume 74, Issue 145, 22 June 1931, Page 7

POSTPONEMENT OF ALL PAYMENTS FOR A YEAR

GREAT BRITAIN AND FRANCE MUST JOIN MOVE THE ALTERNATIVE TO GERMANY'S MORATORIUM [By Telegraph—Press Association—Copy right! .Received June 21. 8.10 p.m. WASHINGTON, June 20. The President, Mr Hoover, on Saturday night announced an offer to the world for one year’s suspension of intcr-Govern-mental debts. He said: “The American Government proposes a postponement during one year of all payments of inter-Govern-inental debts, reparations and relief debts, both of principal and interest, but not including the obligations of Governments held by private parties.” The announcement was given after the receipt of informal reports from European Governments. There is confidence here that Great Britain, France and the other Allies will join in the move and forego the eolleetion of reparations from Germany. Unless that occurs Congressional approval of toe proposal is not expected. This step to aid in avoiding a European financial crisis was taken only after Mr Hoover had conferred with all the Congressional leaders within reach. If the offer is accepted America will forego collection until next year of more than 245,000,000 dollars in war debts, and the Allies will not collect 425,000,000 dollars of reparations owed them by Germany in the coming year. ... . . Mr Hoover said: “The purpose of this action is to give the forthcoming year to the economic recovery of the world, and help free the recuperative forces already in motion m the United States from the retarding influences abroad.” Congress does not meet until December, but none of the war payments are due until December 15. The New York Times’ Washington correspondent says'that following Mr Hoover’s reparations statement it is believed that the President has taken the initiative in an effort to aid Germany. It was felt that in doing so it would necessitate a contemplation of reparations concessions between Germany and the Allies, which in turn would require decisions concerning debt payments between the Allies themselves. Therefore, although yip Hoover gave no inkling of what measures he had taken to aid the world situation, it was understood that the plan under consideration contemplated authority from the United States Congress, which would give the Allied debtors the right to withhold interest payments during the period of European economic financial uncertainty. Mr Hoover contemplates issuing next week a comprehensive statement concerning the conferences with the Republican and Democratic leaders over the German reparations problem. In the meantime White House has issued a statement that the President continued the conferences throughout Saturday and further conferences will follow. Mr Hoover coupled with the announcement of the war debts holiday the hope that by a “desire to assist” America will have contributed to the success of the forthcoming Disarmament Conference. He reiterated: “The burden of comprehensive armaments has contributed to bring about this depression.”