DEBT TO AMERICA NOTE TO WASHINGTON.

Waikato Times, Volume 112, Issue 18807, 1 December 1932, Page 7

DEBT TO AMERICA

NOTE TO WASHINGTON.

IMPORTANT DOCUMENT. ! | I I BRITAIN’S CASE STATED. GROUND FULLY COVERED. 'CORRECT IN SUBSTANCE & FORM. (Official Wireless.) RUGBY, Nov. 29. The new note to be sent to the United States is still engaging the attention of Cabinet Ministers. It is generally recognised that the new note will be one of the most important official documents issued by Britain since the end of the war. The utmost care is being taken to see that the 'British case is adequately stated in substance and correct in form. At present it is not intended by the Government to undertake formal consultations with the other parly leaders. There obviously have been many aspects of the debt situation requiring the fullest and most careful consideration. It is necessary that the reasons should be stated and some of the details supported by facts of inconvertible accuracy. According to the newspapers, the examination of the situation being undertaken by Ministers includes also an assessment of the effects of every method of payment, whether by gold, sterling or dollars, and upon these and kindred questions a mass of technical data has been produced. Among many other considerations to be borne in mind is the effect upon the Lausanne agreements, and whether Britain’s payments could conceivably be continued without re-open-ing the questions on which a settlement -was there reached and whether Britain could go on paying the United States without receiving anything from those countries which owe her money. It Is the economic consequences of the Inter-Governmental debts which receive the most attention. The British press generally take the view expressed In the News Chronicle by Sir Walter Layton, who after pointing out the effect of the American tariff—one of the highest in the world—upon the flow of goods declares : "There is no device known to the science -of economics or to the art of finance which will enable a creditor country to go on collecting debts due to it if it will not receive the goods and services of its debtors.” The uncertainty over the war debt question Is having a severely restricted effect on the London Stock Exchange. In authoritative- quarters the confident view is taken that neither the movement In exchange nor the fall of British funds need cause alarm, for once a decision in regard to war debt payment has been reached the causes which have brought about the recent rise in high grade investments will resume their influence.

'Mr Ramsay MacDonald, the Prime Minister, and Mr Neville Chamberlain, the Chancellor of the Exchequer, have had audiences with the King.