Evening star., 1932-12-12


payment, with the declaration the Gov
eminent has no power TO accept the
British reservation.
Thus the question would be carried
over into a general review of the debts
question to which the British and
American government leaders have
agreed.
The effect OF this listing Of the pay
ment on the capital account was ex-
pected to call for q new settlement.
The American note which reached
here early today, stating congressional
approval was necessary before proposed
British reservations could be accepted,
was regarded as merely stating the
legalistic position, 1t was said.
Cabinet viii Convene.
The view was taken that this was
all that could be expected from the
United States administration.
At the same time it was pointed out
the British government has stated the
terms under which the payment will
be made, which brought the quick
warning from Washington, and it was
predicted the government now would
proceed with the payment. 1t was
considered inconceivable that the United
States would refuse payment.
It was learned that a cabinet ses-
sion, which was expected to frame Brit
tain's next move in the high-speed war
debts diplomacy, would follow Premier
MacDonald's arrival at $3.50 pm. from
Geneva.
Another way Of viewing the situation
here was that Britain would make the
payment as If to a court and that the
manner in which the payment is dealt
with in the bookkeeping of creditor and
debtor countries may become a minor
problem as compared with the whole
war debts situation.
A government statement on the sit
uation was expected later today, either
in the House Of Commons by Neville
Chamberlain, chancellor of the ex-
Mr.. Macdonald.
Surprised Mt Warning.
Surprise was registered at the United
Stetes warning and strong reaction wa
anticipated in Parliament. Astonish
ment was expressed in newspaper spe'
cial editions. The Herald's politica
writer saw "a sudden dramatic crisi
between Britain and the United States.
Something of speed record in dip
lomatic dealings was set when a not
arrived early today stating the Secre'
tary of the United States Treasury hat
no right to accept Thursdays paymen
as credit on future debt settlement
Only last evening a British government
note was dispatched to Washington
saying the installment "iS not to be re-
garded" as a resumption of payment!
under the present agreement.
In high British quarters no answer
to this note was expected as 1t gave
notice of intention to pay. But todal
immediate parliamentary debate wa'
expected with strong pressure from tha
body on the government to Withdraw
its decision to pay.
Large Headlines on Story.
A point made in the American note
to the effect that congressional ap
proval was necessary for any OF th'
stipulated reservations, was unexpected
in government circles.
The swiftness of the American repl!
and the contents of that documen
stirred London as newspapers published
it with their largest headlines Ora
matte Debts Sensation" was one.
The Herald political writer said: "B.
rejecting the British offer the Unitet
States has played right into the hand
of those who throughout the contro
1ersy have claimed Britain could no
and ought not to pay"
Now there was every likelihood o
big swing of members Of Parliamen
to the view that Britain should maxi
no more payments until there is fina
settlement of the debts problem" N
wrote.
Editorials in inside pages of news
papers, which dwelt on the British gov
ernment's implication of never again
view of the present debt arrangement
and apparently did not anticipate tn
speedy reply, stood as originally written
The Herald was the only paper ex
pressing the possibility of dissent II
the United States. 1t said EDITORIAL.
the British note was none too urbane
and expressed doubt whether the reser
| vations would be accepted.