WAR DEBTS

Wairarapa Daily Times, 14 June 1933, Page 5

WAR DEBTS

BRITAIN AND U.S.A. . STATEMENT TO BE MADE. ' i - Press Assuiiiuijxi Electric Telegraph—Copyright LONDON, Tuesday. Information which reached the Prime Minister, .Hr J. Ramsay MacDonald, during the progress of the Government dinner at the Grosvenor House Hotel to the ’601) delegates to the World Economic Conference decided him to call a special Cabinet meeting immediately afterwards. It is understood the receipt of a dispatch from the British Ambassador at Washington regarding war debts occasioned the decision. The Chancellor of the Exchequer, Mr Neville Chamberlain, will make a statement about the war debts in the House of 'Commons to-morrow afternoon. The “Daily Telegraph” says that Cabinet has considered the dispatch from the Ambassador at Washington, which indicates that President Roosevelt is unable to signify general acceptance of a token payment. Earlier Cabinet had definitely agreed that Britain cannot pay the full instalment while receiving nothing from her debtors. The purpose of the second Cabinet meeting was to decide terms and not for expressing the intentions of the Government.. “The Times” says some leading Ministers favour complete suspension of the June payment if a token payment is not accepted. The “Telegraph’s” diplomatic correspondent says Mr MacDonald’s raising the debt issue in his speech at the conference caused surprisesnd even some resentment among the American delegation, but his initiative was approved by other circles. WASHINGTON WAITING. WASHINGTON, Monday. Although officially silent as to the war debts issue placed before the World Economic Conference, the Roosevelt Administration to-night was represented as awaiting a formal British debt proposal, which is reported to be an offer to pay portion of the instalment due on Thursday. Accompanying the offer is •expected to be a request for an extensive downward revision of the debts. Meanwhile, speculation has been increased as to the attitude of President Roosevelt toward accepting partial payment. It,is known that the legality of such action has been given close study by the President and his advisers. Any request for extensive debt reduction is considered certain to arouse an emphatic protest from members of Congress, whether they are still in session or not. . . •• .4 • TOKEN PAYMENT. LONDON. Tuesday. The political correspondent of the “News-Chronicle” says Cabinet will default if President Roosevelt refuses a token payment. AN ELECTRICAL ATMOSPHERE. (Received Wednesday, 12.35 p.m.) LONDON, Tuesday. The “Sun” agency says the debt situation, which is changing hourly, lias provided Whitehall 'with thirty hours continuous tension, comparable with the wartime crisis. A mere handful of people were aware of President Roosevelt's momentous decision,, the details whereof Mr N. Chamberlain is drafting into a statement. The entire Cabinet, excepting Mr Ramsay MacDonald and Mr N. ClrambeTilain were on the front bench when Mr S. Baldwin, Mr W. Runciman and Mr J. 11. Thomas were suddenly called behind the speaker’s, chair. The atmosphere was electric as it was realised that a hitch had occurred. It is believed that President Roosevelt suddenly changed his mind and desired to avoid the necessity of immediately facing Congress.. Therefore, he wished to postpone his statement till loth June. The news is no,w common property and it is impossible to withhold' a statement of such magnitude. Mr Chamberlain will speak at 10 o’clock to-niglit.