WORLD’S HEAVY LOAD

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

WORLD’S HEAVY LOAD

PREMIER’S REVIEW.

WHAT BRITAIN HAS DONE.

INCUBUS MUST BE REMOVED.

United Press Assn.—Elec. Tel. Copyright. (Received Nov. 28, 11.45 a.m.) RUGBY, Nov. 2G. Tho widespread suffering and loss of trade, affecting the prosperity of tho whole world, which have resulted from the handling of the war debts problem during the last two years, were referred to in a speech on the war debts crisis by the Prime Minister (Mr Ramsay MacDonald) at Retford. “During the war," he said, "we shared with America the task of financing the allies and the total loans we made amounted to almost exactly the same as the loans made by the United States. The taxpayer had to hear a heavy charge for interest on them. Immediately after the war tho Government pointed out that the burden of these debts threatened to. oloud not only the financial but the political conditions of the world, and we offered years ago to enter into any equitable arrangement for the reduction or cancellation of inter-Allled debts, provided '“such agreement applied all round."

“The proposal was not adopted, and we were called upon to fund our debts to America for the situation had to be regularised. “The British Government still decided to carry through its policy in so far as it could. “ They declared that In no event did they desire to make a profit out of reparations and war debts (that was contained In the famous Balfour note), and that we were prepared to take no more from our debtors than was necessary to pay our creditors. “Under this arrangement we have slowly written off 60 per cent', of the debts due to us and owing to the fact that we funded our debt to America some years before we funded the Continental debt due to us, we have, In fact, paid up to date approximately £200,000,000 more to America than we have received from Europe. “We have done It uncomplainingly; It was all In the day’s work. “This was the situation two years ago. Then the crisis broke out which very nearly wrecked some countries, and the whole system of international debt payments has broken down in these countries. “Every nation, largo and small, is suffering to-day on account of the way the war debts have been handled. The loss of trade outweighs tenfold, or twentyfold, in some respects, the actual amount of those debts ’Payments. “Confidence and credit cannot bo restored until an end has been put to these attempts to force the stream of capital to run uphill. “It was in this spirit we went to the 'Lausanne Conference, and there for the first time we got a general agreement among the European Governments. “This vast nexus .of Jnter-Govcrn-mental debt which is strangling the prosperity of the people’s must be cleaned up. That was a great achievement at Lausanne. So far as Europe is concerned we are in agreement, but our agreement iiad to be concluded by similar action on the part of the United States. “In order 'to enable the world to go round again on its economic axis, it in the first place, is necessary to free the world from the crushing loads in the impenetrable entanglements of war debts, which operation, while legal, is tantamount to economic madness and under the conditions obtaining these payments have done as much as the war did to impoverish the nations (both those paying and those receiving) to ruin the pbople and to turn millions of men and women on the streets with bodies steadily starving and minds being steadily darkened.

MINISTERIAL SESSION

NOTE TERMS DISCUSSED. PARTY LEADERS .TO BE CONSULTED Piillp.l press Assn. —Klee. Tel. Copyright. (Received Nov. 28, 12.-«5 p.m.) LONDON, Nov. 27. To-night's Ministerial conference to discuss the terms of the new Note to the United Stales lasted throe 'hours. The Treasury and Foreign Olllee official? attended, hut the Note will not he drafted until the Cabinet meets early in the week. The Labour amt Liberal leaders may in the meanwhile be consuitcA