THE WAR DEBTS.

Waikato Times, Volume 111, Issue 18618, 22 April 1932, Page 7

THE WAR DEBTS.

‘ PAYMENTS TO AMERICA. INTIMATION TO DEBTOR NATIONS. AWAITING LAUSANNE CONFERENCE United Press Assn.—Elec. Tei. Copyright. NEW YORK, April 20. The Washington correspondent of the New York Times states that semiofficial comment on the British Budget to-day took the line that Mr Chamberlain's outline should not accepted as direct evidence that debt payments to Hie United States in the next financial year will be withheld. It is stated that any discussion would be premature until after the Lausanne Conference, especially as additions to the Budget are contemplated lo deal with Britain’s financial obligations not covered in the statement submitted yesterday by the Chancellor of the Exchequer. In a responsible quarter the opinion was expressed to-day that Britain is in no position to pay the £34,300,000 due to the United States in the financial year 1933, but that France and Italy are in much stronger financial positions to meet their obligations without, serious strain on their, resources. It is believed that after the' Lausanne Conference Britain will eithor made additions to her Budget to meet in full the payments due to the United States, or seek a readjustment of her debt If the reparation payments she receives are curtailed or eliminated. A rate of 4 per cent, interest is said to have been fixed on the payments deferred under Hie Hoover moratorium. Also it is disclosed that the State Department has sent, notice to the 14 debtor Governments that they will be expected to sign formal legal obligations to repav over a 10 years’ period the £49,200,000 postponed under the moratorium. LATER. NO CANCELLATION. INTIMATION TO NATIONS. LEGAL AGREEMENTS ASKED. United Press Assn.—Elec. Tel. Copyright, (Received April 22, 9.10 a.m.) WASHINGTON, April 21. Formal requests have gone to the nations which benefited by the oneyear moratorium, which will expire next June, to place In legal form their agreements to pay the United States iheir postponed war debt instalments over a ten-year period. This new element has stirred considerable interest because of its coinciding with the renewed clamour over Hie cancellation of or revision of the debts and the British Budget’s omission of the debt item; but the State Department officials maintain that the intimnlion was a routine step which had been delayed much longer than normally. Partly at least, this was because the moratorium, which lie,can last July, was not ratified by Congress until mid-winter. Whether the Administration’s hopes for success of Mr Hoover’s proposal, that the war debt funding commission be revised, were a factor in the long delay is a matter for speculation in Congress, but the quietus was put on that immediately after the suggestion was advanced, and at every opportunity members have re-asserted their unalterable opposition to anything bordering on cancellation moves by this country. There has been every indication that the Administration has accepted the situation and has no intention of going any further.