Evening star., 1932-07-12
|M'DONALD DEFENDS
u. s. DEBTS STAND|
Commons Told Only Informal
Contacts Made With
Americans.

Continued From First Page)
chancellor whether he would guarantee
that a conference of powers would fol-
low II the settlement plan failed, he
publicly declared: Certainly, that's
what would happen
psned i vdad h Bss pr necessa4y ntes to
turn to the Young plan.
Mr.. Macdonald said nobody could
blame the United States for her at
titude.
II, for one. believe there is no ma
ton in the world more ready to lend
hand in Strengthening out the trou-
bles with which we are surrounded. I
say that although America never has
given q pledge, so far as I know, or
indicated in any way how she is pre-
pared to meet U.S." he said.
Far From Ultimatum.
In view of the "greviouS results" like
ly to follow from any suggestion that
the Lausanne treaty had presented an
ultimatum to the United States. he
said he wished to. make it perfectly
clear that all that was done at Lau-
same was to straighten out the in
agree to proposals which the nations
represented there believed to be pos
sible and essential.
This is no time to nibble and scrape
at the problem" said Mr.. Macdonald.
the hour for that is past, and If any
government is going to lead Europe in
recovery 1t must cut at the root Of the
disease
That Is what was done at Lausanne.
Before any country could go to America
the European nations had to examine
their own households which never had
been examined before"
A solution of Europe's political prob
lens is essential If the economic prob
lens are to be solved, he insisted.
Germany must be brought back in
ordinary, international relationship:
her voice must be heard in the coun-
cils as are those of other nations.
He said he was glad the Lausanne
Conference had brought Great Britain
very close to France, France nearer to
Germany and both France and Ger
many nearer to Britain.
THE work which began at Lausanne
has opened new pathways" he said,
they may be very broad pathways"
Mr.. Chamberlains statement was in
terpreted by some newspapers as a hint
that a secret agreement on war debt re-
vision had been made with the United
States before Germany's reparations
bill was cut.
cat Washington yesterday Secretary
of State Stimson said no representa-
tive of the State Department had any
thing to do with framing the so-called
gentlemens agreement, which provides
that the reparations settlement shall
not 60 into effect until the United
States scales down its debt claims)
Scores Churchill.
In Mr.. Churchilrs attack, he said.
that. from his knowledge of public
opinion in America, he believed no
more unfortunate approach toward debt
cancellation could have been made than
the procedure at Lausanne"
The chancellor replied that 1t was
embarrassing to him to have to antici-
pate the prime minister's speech today.
and that Mr.. Churchills attack had
done no service to Britain"
After ALL" he said, I'VE were in touch
at Lausanne, not only with European
representatives, but We also had an op-
portunity of conversa atoms with the rep
resentatives of the United States, so we
ask the House to believe that, in this
rather delicate situation, We have no
reason to think that the course we have
taken is going to lead to any of those
unfortunate results Mr.. Churchill an
ticipates."
He begged the government not to
bring the question to head until after
the American presidential election, de-
claring that to raise it now in the at
moSphere Of the election would be dis
astrous to the ever-growing number OF
friends of debt revision in the United
States.
The debate served, however, to arouse
the keenest interest in the Prime Min
isters statement. The Times said 1t
admitted the ground was still to be
consolidated after Lausanne" and added
it was not surprising if each govern
| ment felt it could not recommend final
remission of its own share Of the debts
until it could inform its taxpayers a
settlement had been reached regarding
the debts due the United States.
Great Anxiety Felt.
The Mail said it looked to the Prime
Minister to clear up the obscurity re-
garding Great Britains payments to
the United States over which, it said,
there is great anxiety lest Great Bri-
tain should be required, after remitting
the debts owed it by other European
Nations, to find huge sums which the
United States can claim
Such burden" it added. would be
beyond the capacity of the British
taxpayer"
The News-Chronicle called ChurchilIs s
speech railing invective" and said it
expected Prime Minister Macdonald to
deal with this wild onslaught" as it
deserved.
The Labor Herald asked the prime
minister to make clear whether it Is
true, as Premier Herriot of France was
credited with saying, that If salts
factory settlement with America is not
reached, the reparations agreement goes
by the board.
GERMANS DISCLAIM ROLE.