Evening star., 1923-01-30
BRITISH CABINET
! TAKES UP j. s. DEBT
Some Members Credited
With View That Present
Status Should Continue.
LACK OF HARMONY SEEN
Payment Of 5 Per Cent Interest
Now Advocated, With Hope of
Obtaining Better Terms.
By the Associa ted Press.

BY the Associated Press
LONDON, January 3o.-The British
cabinet is not enjoying that tranquil
hty which Premier Bonar Law pre-
scr!bed for the country upon taking
ONCE. As the ministers met today to
consider Stanley Baldwin's report on
his American mission IL was under
the shadow of near east war cloud
ana the unlffting gloom Of the Ruhr
situation.
The two latter subjects, it was ex-
the cabinet in part, but the n nrimarv Ur
purpose of the meeting was to deal
with Great Britain's debt to the
onited states 1t was not supposed
tnat this question could be settled at
single session. and the presumption
De needed to bring the divergent
views OF the ministers into harmony.
Hoping for Better Terms.
some OF the cabinet members are
credited with the opinion that il
would De better to continue paving
per cent interest on the debt as IL
now stands, relying on the hope that
oetter terms can be arranged in the
near future. Premier Bonar Law him
self Is supposed to hold this opinion.
or some view approximating IT.
The Times parliamentary expert
ascribes to the premier an inclination
to believe that the United States may
pc disposed TO examine the facts and
the hgures again in the near future.
The Telegraph's diplomatic author
ity says: "A fresh proposal which
may conceivably be studied by the
cabinet would provide for payment of
interest at per cent for ten years.
reserving for discussion at the end
Of that period what rate Of interest
would be paid thereaftern
One of the possible changes in the
future which Is receiving much dis
cussion is that sterling exchange may
rise above the dollar, thus enabling
much more favorable terms.
Bankers Favor Acceptance.
The financial circles Of London. ac-
cording to the best informed writer's,
largely incline toward acceptance Of
the American commissions terms. al
though some would stipulate that IL
at the end Of a decade monetary con-
dftions improved in Great Britain's ia
vor this country would be allowed
the full benefit of that change in. a
revision of terms.
Some financiers, however, favor i'm
mediate acceptance, contending that
the difference of four OF five million
pounds sterling between what Mr..
Baldwin tried to get and what Amer
lea offered is too small to haggle
over at the risk Of disturbing the
good relations between Great Britain
and the United States.
With reference to American criti-
cism Of Mr.. Baldwin's Southampton
interview. one writer in the Telegraph
makes the curious suggestion that the
chancellor's statement might have
been inspired by the American Secre-
providing inhabitants Of the western
states with a more exact knowledge
of the situation"
Questioned by the Daily Mail with
reference to the criticism in the Unit
ed States Of his interview with regard
Chancellor of the Exchequer Baldwin
said he felt sure the criticism was
due to only extracts of his statement
having been cabled across the At
lantic.
Chancellor Baldwin's View.
'I am sure II tho whole interview
was read in the United States" the
chancellor declared, mo exception
would be taken to it. My principal
object, of course, was to explain to
the British people the position Of
affairs in the United States. the diff
culties and opinions Of the great mass
Of the American people away from
the eastern seaboard. regarding the
debt.
iIOf this / am sure q majority of
the people Of this country are tgno-
rant, Just as q majority OF the peo-
pie Of tho United States, as friendly
al they are to this country, do not
yet realize our point of view.
The Daily Mail adds that steps al
ready have been taaen to convey the
full interview to the American au-
thorities. 1t says 1t is understood no
exception has been taken to the in
terview on their behalf.
There Is no Likelihood that Premier
Bonar Law will accede to the request
of the parliamentary labor party for
the convocation Of parliament before
February 13 to consider the Ruhr oc-
cupation. it was said today in well in
formed political quarters.