WAR DEBTS

Wairarapa Daily Times, 16 December 1932, Page 5

WAR DEBTS

ITALY PAYS FOUR COUNTRIES DEFAULT. .Press Association Electric Telegraph-Copyright WASHINGTON, Wednesday. The Avar debt situation to-night moved out of the realm of things academic into the field of hard reality, but the confusion and uncertainty nevertheless seem somchoAV to he intensified. ihe American people and American Government cannot he said to be anything like satisfied Avith the outcome of the negotiations leading up to 15th December. Four of the eleven countries due to make payments have announced default —France, Belgium, Hungary and, to-night, Poland —while Esthonia’s action is still uncertain. Italy paid day and five pay to-morrow the 124,934,000 dollars due. That any action will be suggested by the President against defaulters is dismissed as out of the question. All talk of retaliatory measures is AA'ithout foundation. It seems indicated that the impulse, towards the clarification of the serious and obviously unhappy situation will come Avith President Hoover'S unpnding Message to Congress relative to the entire question.

SIX COUNTRIES PAY. DELAY WITH GREECE. (Eeeeiv'ed Friday, 11.25 a.m.) WASHINGTON, Thursday. The United States to-day collected iva.r debt payments from Britain, Italy. Czecho-Slovakia, Finland, Latvia, and Lithuania, Avhile France, Belgium, Poland, Esthonia and Hungary failed to par. Greece, Avhich failed to meet £90,000 pavment on 10th November will, it is believed, pass up payment on Ist January. BRITAIN’S PAYMENT. ARRANGEMENTS COMPLETED. RUGBY, Wednesday. Arrangements ha\ T e been completed through the Bank of England and the Federal Reserve Bank A\-hcreby the British payment 1 * of 95,550,000 dollars in gold Avill to-morroAV be at the disposal in NeAV York of the United States r f reasury.—B.O.W. FRENCH OFFER. LOAN TO BRITAIN. (Received Friday, 5.40 a.m.) LONDON, Thursday. The “Financial Ncavs” Paris correspondent states that, despite denials, it is a fact that France offered to lend Britain £20,000,000, to facilitate payment to America. Although Britain rejected the offer it has strengthened the Anglo-French friendship. FOREIGN EXCHANGE. STERLING RISES, FRANC FALLS. WASHINGTON, Wednesday-. The effect of the overnight ucavs on foreign exchange Avas interesting. Whereas sterling rose to 3.294 dollars as against this Aveek’s previous high point, 3.28' 1-8 dollars, 3.21-1 dollars a Aveek ago, and 3.14 3-S dollars at the loAvest leA'el on 29th XoA'ember, the franc yesterday' declined to 3.90 compared Avith 3.92 3-S Avhen the debt. Notes AA'ere first presented almost exactly a month ago. The”present rate appears to be the loAvest since the franc AA-as legally stabilised in 1928. It undoubtedly touches the gold exporting point at Paris. TAXATION BURDEN. BRITAIN HEADS LIST. LONDON, Wednesday. Mr L. Hore-Belisha, Financial Secretary to the Treasury', in a Avritten answer in the House of Commons to a question on the average taxation per head in different countries, said that for the year ended 31st March, Britain paid £l*6/3/-; France, £9/10/-; Germanv, £5/15/-; America, £4/19/-; and Italy, £4/12/-. “FRANCE DECEIVED.” GERMAN NEWSPAPER. BERLIN, Wednesday. The Socialist newspaper “VorAvaerts, ” commenting on the French default, says: “The Avidespread anger of the French public at the possibility of payment is completely justified, because America’s attitude is both imprudent and unjust, France feels that America has deceived her on a technicality. The danger of France refusing to ratify' the Lausanne Agreements must not be underestimated.”

MESSAGE TO CONGRESS. REVIEW OF WORLD OPINION. NEW YORK, Thursday. The usually well-informed chief Washington correspondent of the “New York Times” telegraphs tonight: “The President’s Message to Congress will review the state of world opinion relative to debts on a factual basis and urge Congress to empower the executive statesmen of the United States in close co-operation with Britain. -to. approach a re-survey of the question for all the nations involved without, regard to the acknowledged legal rights of the United States to collect- war debts, Tho Parliaments of the defaulting nations reflect the popular foreign belief that there is no moral bond. This is just as pronounced as the belief in Congress to the contrary. In the view of the Administration, if the debt issues settle down to a tug-of-war among parliaments the brood of international hostilities will be- engendered, meaning much hardship to the world. The ameliorating agency of statesmanship must not be disorganised. By paying their debt instalments, Italy and particularly Britain, are in a commanding position. Their plea for review and revision is now expected to carry extra weight.” The correspondent adds: “Congress lias been confident that all nations would pay, that they were bluffing, and The entire attempt to obtain revision was selfish propaganda. Tho French, and Belgian action has brought about a more reflective mood on the part of many influential members. Some of

them Avelcome the action of the defaulting nations as ad\'anc-ing the date ■of a solution of the entire question by at least six months.” IMPRESSIVE STATEMENT. IN HOUSE OF COMMONS. RUGBY, Wednesday. The debate on the American Avar debt payment in the House of Commons opened Avith an impressive statement by the Chancellor of the Exchequer, Mr Neville Chamberlain. He said that, only by examining the AA'hole history of this affair Avas it possible to realise lioav strong Avas Britain’s title to claim revision, lioav consistently and persistently successive British Governments had urged the cancellation of reparations and Avar debts, lioav reluctantly other countries had accepted that vieAv, but lioav hard facts and bitter experiences to come closer and closer to the vieAvpoint originally expressed bv the British Government.

Having reviewed the recent negotiations AA'ith the United States, Mr Chamberlain continued: “In diplomatic circles avc AA-ere given to understand that cash, and cash only, Avould content the members of Congress. If Ave had declined to pay, it Avould have been equivalent. to default, and default by the British Government for a sum AA’hich avc could not say avc AA'ere unable to pay Avould liaA'e resounded around the Avorld and might haA'e been taken as justification for other .defaults in other circumstances.” In the course of the debate that folloAved. Mr Lloyd George said tliat the British Avas the only Parliament Avhich had not been permitted to make a decision on the subject. The American Congress Avould decide, and the French, Italian and Belgian Parliaments had all decided. The poor old “Mother of Parliaments” AA'as only alloAved to gibber in a. corner. The French Chamber had decided not to default, but to say: “ You imist parley before AV'e pay.” It Avas not repudiation for Britain to say: • ‘ There is a A\-orld cataclysm. We cannot collect the debts due to us, and ask you to parley. We liaA-e been paying yearly out of the bread of our people when others have only paid one-fifth. If you are not prepared to talk to your debtors in the present emergency, we can A\-ait until you do.” He asked Mr Chamberlain, Avhen he paid uoav, to take a bold line and say: “ ‘This lias got to stop. We are the greatest creditor nation in the Avorld, and in proportion to our population Ave are paying the heaviest taxation. It is to our honour to sawe the peoples of the world. We must be heard’.” —8.0. W.

NO REPUDIATION. •HOUSE SUPPORTS GOVERNMENT. LONDON, Thursday. “The Times,” in an editorial, says: “The debate shoAved that the Government’s decision to pay interpreted also the unanimous AA'ishes of the House of Commons, which shared the Government’s opinion tliat anything saA-our-ing of unilateral repudiation Avould be a deplorable mistake. Sir Robert Horne’s speech should finally dispose of the mischievous fairy tale that Mr Baldwin rh'eted the burden of the American debt to Britain’s neck when he went, to Washington in 1923. Though Mr Lloyd George derided the House of Commons as ‘gibbering in a corner.’ the debate proved that the Mother of Parliaments has no reason, to fear comparison Avith either .the French Chamber of Deputies or the United States Congress. ”