THE WAR DEBTS

Waikato Times, Volume 109, Issue 18256, 18 February 1931, Page 8

THE WAR DEBTS

PAYMENTS TO AMERICA. SOME SEARCHING QUESTIONS. A BUSY QUARTER OF AN HOUR. Cnlted Press Assn.—Elec. Teh Copyright. (Received Feb. 18, 1.-io p.m.) LONDON, Feb. li. In the House of Comons Mr Philip Snowden had a quarter of an hour answering questions in relation to the abatiment of Australia s war debt to Britain, the most direct thereof was Mr L. W. Matter's (Labour— Lambeth) query as to what proposals had reached him for the revision of the terms. , Mr Snowden: ‘1 have not received any communication thereon.” Air G. Mander (Labour —Wolverhampton) : "Will you point out to the Australian Government that if the question arises Britain is in no position to make any concession.” Sir N. Gratton Doyle (Conservative —Newcastle-on-Tyne) "Will you also remember that these questions are most mischievous?” Air Snowden did not reply. Mr E. F. Wise (Labour —Leicester) risked a question relative to the receipts of war debts from the Allies and Dominions also Britain's payments to America.. Mr said our pavments to the United States for the year, ' 1931-2, amounted to £3,550,000 and our receipts from Dominions reached £7,653,000. Air Wise: "Are we to, assume that tiie Balfour's formula regarding the repayments of allied war debts did not include amounts paid to us by the Dominions?”

Air Snowden: The portion of the note on which the debt repayment settlements are made provided that there should be a correspondence between what we pay America and what we receive from our debtors that had been fulfilled. Air Wise asked: Is it not the case that we on a balance receive £5,000,000 or £7,000,000 more than we pay America. Air Snowden: "I do not think so. Of course, such correspondence varies from year to year.” Replying further to Air AVise, Air Snowden said that Australia would re.ceive £B2-6,000 on account of reparations in 1931-2, and Australia was due to pay Britain £5,548-,809,000 on war debt in the same period. Air Wise asked: “As every £1 paid on war debt is £1 less for Australia to purchase in this country, would it be worth while, in view of the unfortunate position of Australia, to reconsider the basis of repayments?” The Speaker here intervened and the question was not answered. Air Wise then sought a comparison of the percentages in the Allied repayments ,and Britain’s payments to America in 1931-2. Air Snowden said Britain’s payments to America is 3.64 per cent of the capital sum outstanding at the beginning of the year. The corresponding figure for Australian repayments to Britain is 6.96 per cent. It was impossible in the case of French and Italian war debts to Britain to express a distinction between capital and interest. Air Wise: “Is it not a fact that we are expecting Australia to pay four or five times as much per annum correspondingly as France and Italy pay us?”

ATr Snowden: What we expect from Australia, and what Australia is paying us, is the sum due under the Anglo-Australian agreement.