DEBTS & REPARATIONS

Waikato Times, Volume 111, Issue 18630, 7 May 1932, Page 5

DEBTS & REPARATIONS

SENATOR BORAH’S PLAN.

A THREE-POINT PROPOSAL. CONFERENCE FAILURE PREDICTED United Press Assn. —Elec. Tel. Copyright. WASHINGTON, May 5. Unofficial reports from London state that the British Government may propose a 25 per cent, cut in reparation payments at the Lausanne Conference. Commenting upon these reports today, the State Department declared that its position continues to be for Europe to settle this problem first before turning to the United States for relief in respect of war debts. However, this Government could not refuse to consider any proposition the European Governments -submitted in regard to war debts. The chairman of the Foreign Relations Committee of the Senate, Mr W. E. Borah, addressed that House to-day on world financial problems. He predicted that this summer either would mark the beginning of recovery or denote greater misery than has been experienced in the past. Mr Borah outlined three point’s In his platform to restore prosperity, namely, a reduction of armaments, a ■settlement of the reparations question, and the restoration of silver to the place it occupied prior to the foreign demonetisation of 1925. He quoted ■satistics to show that war costs constituted 75 per cent, of the world’s budgets.

The speaker predicted the impending failures of the Geneva and Lausanne Conferences. He attacked White House for its failure to call an international silver conference. At the same time he characterised Britain as “the only nation that seems to be recovering." There must be some relief 'from the gold mentality, insisted Mr Borah. Ho explained that the United States and France held 70 per cent, of the world’s gold, leaving the rest of the nations about two dollars per capita, which, he said, was not enough with which to transact their business. For that reason half the human family to-day was on -a basis of barter, and their purchasing power had been destroyed. LONDON, May 5. The Chancellor of the Exchequer, Mr Neville Chamberlain, stated in the House of Commons that the next payment of interest on war debts to America ordinarily would have fallen due on June 15, but that would be postponed under the Hoover moratorium. The following payment would fall due on December 15. No doubt there 'would be an opportunity to discuss -the Government’s policy in regard to war debts and reparations before the last-named date.