DEBT TO AMERICA

Waikato Times, Volume 112, Issue 18805, 29 November 1932, Page 7

DEBT TO AMERICA

BRITAIN’S INTENTIONS

A SIMPLE EXPLANATION

AMERICAN ATTITUDE. I’ntted Press Assn.—Elec. Tel. Copyright. LONDON, Nov. 28. The Times says it is not expected that the British Note will deal with the general question of debt revision. “The Government should confine itself to explaining in simple language the disastrous effects which are bound to follow the transfer of 95,500,000 dollars in the present crisis," says the paper. “It must seem irrelevant to the average American to emphasise the strain which the provision of that sum will impose on the over-burdened British taxpayer. What concerns America is the effect upon American exchanges and trade coupled with a further depreciation of sterling and the unsettlement of the whole reparations agreement achieved at Lausanne. “It is not easy for the American taxpayer to understand that he will become poorer, not richer, by exacting the payment of debts legally due. There need be no question of an appeal to his sentiment. He is merely asked to refrain from adding to his own burdens." The decline in sterling situation is complicated by the floating debt, and is reported to be worrying the Treasury and the Bank of England. This debt lias expanded nearly £300,000,000 since April and has reached the record figure of £880,000,000. Even if it is reduced by £150,000,000 at the end of the financial year owing to an unexpected surplus of revenue, it will still be unreasonably high.

REQUEST FOR MORATORIUM.

BRITAIN’S REASONS. TO BE GIVEN IN DETAIL. (Omclal Wireless.) RUGBY, Nov. 26. Regarding the British reply to the American Note, Mr Neville Chamberlain, Chancellor of the Exchequer, said yesterday that Britain would take the occasion to develop in greater detail the reasons which led her to make her original request. The best-informed newspapers recognise that the negotiations with America, In so far as they affect next month’s payments, are not concerned with Britain’s ability to discharge them but with the advisability of America receiving them.

LATER.

AMERICAN INSISTENCE. OBLIGATIONS MUST BE MET. INTIMATION TO DEBTORS. United Press Assn.—Eloc. Tel. Copyright. (Received Nov. 29, 10.30 a.m.) WASHINGTON, Nov. 28. In view of the unwillingness of the United States to extend the war debt moratorium, the Indications are that the debtor nations will meet with disappointment in their persistence that some means of postponing the payments on December 15 could be found. The Administration Is puzzled by the degree of optimism which seems to prevail in European capitals, despite the Notes sent to Britain, France, Belgium, Poland and Czechoslovakia advising them to meet their obligations in almost Identical terms. The State Department informed Poland and Czechoslovakia that the President had no authority to extend the moratorium and no facts had been placed “in our possession which could be presented to Congress for favourable consideration.”

PLEA FOR POSTPONEMENT. AN UNANSWERABLE CASE. MINISTERS MEET BANKER. Ipmcial Wireless.) (Received Nov. 29, 12.30 p.m.) RUGBY, Nov. 28. ■Cabinet Ministers were busily engaged yesterday, and will be further occupied to-day, considering the terms of the second Note to be despatched to the American Government. It is realised that Mr Hoover’s invitation to state in more precise terms the roasons which led the British Government to suggest a suspension of next month’s instalment of the war debts payment gives an opportunity to make a clear and explicit statement of the grounds for their conviction that it would be against the interests of the whole world, Including the United States, to resume the debt payments at this moment. It Is felt that an unanswerable caso can be presented. Meanwhile the Government is taking all appropriale measures to ensure that their action is supported by the nation as a whole. It should be noted that the Ministerial discussions at present proceeding are not concerned with the cpjeslion whether the payment due on December 15 should or should not lie paid. That, question has not yet arisen. Mr Hoover requires fuller doriimenlalion of Britain's case, and it is being prepared as qiuckly as possible. Mr Montagu Norman. Governor of Ihe Bank of England, visited the Chancellor of Die Exchequer, and several Ministers discussed Die mailer further at a meeting in Die House of Commons. It is anlieipalcd Dial Die Note will be despatched !o Washington witlmi the next few days.