MAGNIFICENT SPIRIT

Manawatu Standard, Volume LIII, Issue 21, 21 December 1932, Page 7

MAGNIFICENT SPIRIT

NEW ZEALAND’S OFFER. LIABILITY FOR WAR DEBTS. QUESTION TO REMAIN IN ABEYANCE. (United Press Association—By Electric Telegraph.—Copyright.) LONDON, Dec. 20. It is understood that the Government Avill dispatch a reply to NeAV Zealand’s offer to resume liability for Avar debt payments, indicating deep appreciation of the magnificent spirit shown, especially in view of New Zealand's Budget problem, but the reply is likely to suggest that the question remain in abeyance pending negotiations with America.

The position is that Britain has neither asked nor expected the Dominions at present to resume their payments. The situation is precisely as cabled recently, and Avhich it is apparently necessary to reiterate owing to cabled suggestions that Australia also is contemplating a resumption of payments. The crux of the situation is the Lausanne Agreement, Avhich some Dominion opinion confuses Avith the HooA’er Moratorium, notably New Zealand’s offer. It Avas agreed at Lausanne that the Dominions would not be treated less generously than foreigners if the question of payment arose.

Britain is not desirous of disturbing the Lausanne Agreement owing to repercussions in Europe. She hopes for an early discussion Avith America, pending Avhich the Lausanne Agreement must continue.

The earlier statement referred to in the cablegram made it clear on the authority of a British Government spokesman that tho Dominions would not haA’e to resume their payments to Britain as the result of Britain repaying America. It was understood that Britain assured the Dominions at Lausanne that they Avould not be treated less generously than foreigners. INDICATIONS FROM WHITEHALL. LONDON, Dec. 20. The indications at Whitehall are that tho Dominions Avill not be called on to resume their debt payments to Britain Avliile foreigners are exempt under the Lausanne Agreement. HONOURABLE GESTURE. LONDON, Dec. 20. The Morning Post, commending New Zealand’s honourable debt gesture, remarks that there is no w r ar debtor more deserving of relief and none readier to make every sacrifice ratlrer than dishonour its bond. The Times says it is an unselfish offer from a Dominion gallantly struggling through depression. The same attitude is taken by Australia although they abstain from making a formal offer pending a review of the whole situation. The attitude of these Dominions is welcomed as another proof of their high courage and generous comradeship.

AUSTRALIA NOT INVOLVED. CANBERRA, Doc. 20. New Zealand’s offer to resume liability, for Avar debt payments in no way involves Australia in immediate action. The next Australian payment does not fall due until March SiOfficial circles express the opinion that oAving to the uncertainty of the world position, and the possibility of some future arrangement between Britain and the United any decision upon the subject at present Avould be premature.