Evening star., 1932-12-26
Britain to Work With Other
Nations in Future Nego-
tiations With U. S.
PAYMENTS IN KIND
ALSO TO BE SOUGHT
European Economists Believe In
flation Is Inevitable in America
and Expect Congress to Relax.
BY CONSTANTINE BROWN.

An extended moratorium until such
time prices of commodities rise and
tariff barriers are lowered sufficiently
in order to permit a freer interchange
of goods and payment of war debts
in kind is the goal of the debtor ma
tions, according to recent reports from
abroad.
The British government, which here
tofore has been asking for immediate
conversations over the war debts, has
become less insistent lately. The ap-
parent reason for not pressing its re-
quest is the fact the present admins
tration has no power to deal with the
debts question in a constructive manner.
Cabinet Factions Agree.
But the real reason, as reported from
Londcn, is that during the coming ne
eotiations with the Roosevelt admins
tration the British will act in full
harmony with the other debtor coun-
tries. This was decided in the bargain
between the two factions in the British
cabinet which had been at logger
heads over the payment of the Decem-
ber installment.
The chancellor of the eXchequer, Sir
Neville Chamberlain. and his support
ers agreed with the MacDonald-Bald-
win thesis that debts should be paid
only after they succeeded in obtaining
the promise of the premier and his
friends that this would be the last time
that Britain acts independently in the
matter of war debts. Only by giving
his understanding was the powerful op-
position of the chamberlain faction
overcome.
The Paris government and French
men in public life are at present en-
deavoring to create an impression
through speeches and rumors tnat the
defaulted installment might be paid.
This may or may not be So For the
time being, however the whole matter
is Of very minor consequence.
Working on Moratorium.
The important fact is that the debtor
governments are working at present on
a plan whereby the American Govern
ment will be requested to extend the
Hoover moratorium for short period
at first-in order to enable the economic
conference, which will be held some
time between Nav and July next year,
to devise certain methods for the i'm
p-ovement of the international trade
The principal argument brought Tor
ward in favor Of extension of the debt
holiday will be that it would be impcs-
sible for the new administration, prln-
cipaIly occupied with the solution OF
the all-important domestic questions, to
devote sufficient attention to interna-
tional problems and find an adequate
solution to the debt question. The Eu-
ropean debtor nations will all present
a request for a reduction of their debts.
vidually, will reach washington Slmul-
tanecusly. Three months would be
hardly sufficient for the negotiations,
American Government will be requested
to Iorego temporarily, the June Is
payments.
Imitation Held Inevitable.
In the meantime European econo-
mists believe imitation in America will
be inevitable, in order to put up the
prices of all commodities. This infla-
ton. it is believed in Europe, will have
a "sobering effect on the American
people and when the interested govern
ments show pleasant prospects for a re-
sumption of the international trade, as
a result of a satisfactory debt settle
ment, the American Congress will be
much less adamant toward new
moratorium than it is today.
Such a moratorium, the European
governments think, could be renewed
for number of years. until the Ameri-
can people are properly educated to the
idea that the war debts will no longer
be paid and that it is to their interest
that they should not be paid.
The proceedings at the economic con-
ference. it is believed ia Europe. also
will be highly educational for the
American people, since. with a certain
amount of publicity, Europe will be able
to prove her case that the debts can be
paid only in kind, by the interchange of
goods between the two continents.
Davis to See Roosevelt.
The ideas of Gov. Roosevelt on this
matter are, for the time being, un-
known. But these views will be placed
before him, in a milder form. by Nor
man Davis. who heretofore has been
the spokesman of the American Gov
ernmant in Europe and has been 1ntl-
mately connected with the plans OF the
promoters Ct the economic conference.
Mr. Davis is an ardent believer IN a
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