DEBTS TO AMERICA

Manawatu Standard, Volume LIII, Issue 22, 22 December 1932, Page 7

DEBTS TO AMERICA

TELEGRAMS EXCHANGED. MR HOOVER AND MR ROOSEVELT IDEA OF COMMISSION REJECTED. (United Press Association—By Electric Telegraph.—Copyright.) WASHINGTON, Dec. 20. Although the communications have not been published, the New Y'ork Times’s Washington correspondent today learned tho essential points of telegrams exchanged between President Hoover and the President-elect, Mr F. D. Roosevelt, regarding co-operation in the formation of a Debt Commission. Mr Roosevelt’s reply to-day was “friendly and in some respects helpful in tone,” but he rejects the commission idea as opposed to his own belief that existing diplomatic agencies are sufficient for the purposes of reexamination of the debt situation. He is also unsympathetic to tho suggestion of tieing the debt re-examiners with the delegation to the Economic and Disarmament Conferences, stressing the view that the debts are a separate matter, but he promises to “do nothing to retard or hamper an immediate re-examination.”

He passively objected to Mr Hoovver’s ostensible exclusion of some debtor nations, apparently wishing to leave tho door open for negotiations with France.

Mr Hoover is now faced with making a decision whether he will proceed on his own initiative. It is thought likely ho will be governed by Britain’s action. If she requests an immediate review he could not wed deny it, but if Britain prefers to await Mr Roosevelt’s inauguration Mr Hoover will probably drop the matter. BRITAIN AND UNITED STATES. DISCUSSION AT EARLY DATE. (British Official Wireless.) RUGBY, Dec. 20. Interest has been aroused in Britain by President Hoover’s message to Congress declaring that he intends to proceed, if needs be, independently of Congress, to set up machinery for further debt discussion with thoso nations which have not defaulted. The President intimated that he would make a further attempt to secure the co-op-eration of the President-elect, Mr Roosevelt. The American policy would be to link debts, economic questions and disarmament, and secure trade compensations for debt remission. Cancellation would not be entertained. In. the House of Commons, the Acting Prime Minister, Mr Baldwin, reviving to a question, said that the United States iiad agreed to enter with Britain on a joint examination of the whole war debt question, and it was hoped that the discussion would be initiated at an early date. WAITING FOR MR ROOSEVELT. LONDON. Dec. 21. It is expected that talks on the subject of the war debt between London and Washington will begin somfe time in January, but the Daily Telegraph’s diplomatic correspondent stresses that they can only be in the nature of an exploration pending Mr F. D. Roosevelt and tho new Congress entering upon their functions in March. A feeling is growing here that it may be useless to call the World Economic Conference until debt settlements have been reached, at least between America and her principal debtors. Several commentators deduce from Mr Hoover’s latest message evidence of America’s anxiety to hasten Britain’s return to the gold standard. It is understood that Britain is in no hurry to change, but the Washington Administration is determined to use every influence and pressure to speed its restoration. The Times, in a leader, says: “Mr Hoover’s apparent determination to initiate on his own responsibility, failing the co-operation of Mr Roosevelt and Congress, a discussion on the debts question will be whole-heartedly welcomed, ns agreement must be reached before June in order to avoid a crisis. A series of defaults would be disastrous to the countries concerned. The message shows a broader and more realistic attitude than, earlier messages. This may indicate a clearer American grasp of economic realities, but a striking omission is any allusion to tariffs and other measures preventing debtor countries from paying their debts normally by goods and services.” FRENCH POLICY UNCHANGED. PARIS, Dec. 21. The new Ministry’s declaration of policy is not expected to differ as regards either debts or general matters from the policy of M. Herriot. Parliamentary opinion is still opposed to debt payment. The hostility is likely to continue unless unforeseen developments show it would be advantageous to France to reverse her attitude. FUTURE GOLD STANDARD. DEPENDS ON ECONOMIC CONFERENCE. Received December 22, 8.45 a.m. LONDON, Dec. 21. The Financial Times says: “The future gold standard must depend on the ability of the World Economic Conference to bring a stabilisation to monetary and economic affairs. It cannot be decided until the debt issue is settled.” PRICE OF GOLD. Received December 22, 9.45 a.m. LONDON, Dec. 21. Tho price of gold is £6 3s od per I ounce.