WAR DEBT PAYMENT

Waikato Times, Volume 112, Issue 18804, 28 November 1932, Page 7

WAR DEBT PAYMENT

BUSINESSMEN’S VIEWS.

SOME RECOMMENDATIONS.

RESENTMENT TOWARDS FRANCE

United Press Assn. —Elec. Tel. Copyrlgui NEW YORK, Nov. 27. The principal development in the war debt situation to-day .was the publication of a lengthy report issued by the United States Chamber of (Commerce. This stronjgly opposed cancellation, but advocated a temporary postponement of payments by countries not able to pay, and a revision where advisable conditionally upon a reduction of armaments and compensatory trade advantages. Presented as the “business man's point of view” this report declared: “Adjustments must not throw an undiminished 'tax burden upon the American -taxpayer.” It made the five following recommendations: —l, postponement; 2, revision or modification; 3, definite provisions for such treatment of America’s trade as will assure access for American goods on fair competitive terms ('this is interpreted as <an advocacy of preferential trade agreements); 4, reductions of armaments; 5, rejection of cancellation proposals. The first signature to the report is that of Mr Silas Strawn, director of the First National Bank, 'Chicago, and chairman of various companies, and Includes those of Mr 'Melvin Traylor, banker, Mr Julius Barnes, wheat importer, and other distinguished men. London press reports concerning Britain’s intention 'to send a new Note, addresses by the principal statesmen and Mr J. L. Garvin’s editorial article in the Observer, have been noted with exceptional attention by interested circles at Washington.

The Human Touch. Mr Garvin’s suggestion of a “human touch” in the new Note elicited intimations, even from sources where the greatest sympathy for Britain exists, that she must present convincing arguments why payment should be suspended and debts reviewed if the present hostile 'attitude of 'Congress is to be modified. Such evidence as has been received so far through official channels abou British economic conditions Is not held to be conclusive, although efforts have been made to determine with exactness the weight of the difficulties confronting that country. It would he idle to attempt to conceal the fact that there Is unquesioned resentment on the part of tne American people -generally and particularly by 'Congress, over the attacks alleged to have been made by French interests last year on America s financial stability with runs on the dollar and wholesale withdrawals of b ances hero. That this is in great part responsible for the apparent intrans gence in the American attitude it would be difficult 'to den^. Trrpsnective of the widespread sympathy for Britain's conditions the EXT* Congress still remains even inward her bv reason of the so-caueu united front by the European Powers in dealing with the United States with reference to debts. It is recognised that this united front is imperative as the _ resu t o Lausanne. Nevertheless it is pointed out that there have been warnings from the American Government against treating with it as a group. A message from Washington sa the State Department to-day notified! Poland and Czecho-Slovakia that then; payments would be expected on December 15 and that there would be no extension of Hie moratorium; also that the President, Mr Hoover, was prepared to recommend the creation of a debt commission.

Sympathy for Britain. The publication of the Notes sent to Britain, France and Belgium by the State Department revealed the fact that the United States Government’s ollicial position to a great extent coincides with the trend of public opinion, namely, considerable sympathy with and encouragement for Britain, but little or no hope held out to France and Belgium. The Note to Britain mentioned the seriousness of the situation upon which the request was based, but explained that nothing could be done without action by Congress. It suggested that by the current payments being made the prospects of satisfactory approaches to the whole question would be greatly increased. The Note encouraged the British Government to make a presentation of its position as a special case, looking toward a revision. On the other hand tlie Notes to France and Belgium are regarded, at least, as far as the Hoover Administration is concerned, as closing the door to any suspension of payments.