Evening star., 1932-03-17
BRITISH WAR DEBT
REVISION PROPOSAL
IS DENIED BY REED
Senator, Speaking for PreSi-
dent, Says Plan Was Not
Even Considered.
PAYMENT OF u. S. LOANS
AT FOREIGN RATE SCORED
Democratic Leader Sees Great Loss
to This Country Through De-
preciated Currency.
BY the Associated Press.

BY the Associated Press.
A Democratic attack in the Senate
today against revision of the British
war debt owed to America brought q
denial from Senator Reed. Repuolican.
Pennsylvania, on behalf of President
Hoover that the subject was even under
consideration
Senator Reed specified that the
question had not been discussed" with
Ambassador Mellon, who is about to
sail for his London post.
Newspaper Quoted.
Senator Robinson of Arkansas, the
Democratic leader, had quoted from q
newspaper story published here today
saying Mellon was favorably inclined
for revision Of the British debt. He
warned that any revision would be very
carefully considered by Congress.
After Senator Connally Democrat, Of
Texas. challenged the administration to
State its position, Senator Reed, who
had just returned to the floor, said:
Il am authorized to say that there is
not word Of truth in the newspaper
article"
by whom he was authorized to speak.
The Senator replied by the Pres
ident"
The subject of debt negotiations
has not even been discussed with Mr..
Mellon" he added.
Reed himself recently expressed
favor toward the modification of Eng
lands war debt
The washington Post today pub
lished the story that Mr. Mellon would
open negotiations in that direction
upon assuming his new post. The
Democratic speakers described the Post
as the administration gazette"
Second Discussion.
Senator Robinson Immediately plunged
into second discussion of the article
which he said did not make the state
ment Mr.. Mellon had said he was in
structed to open negotiations, but had
involved the administration by i'm
| plication"
rs the Senator prepared to state that
| Mr. Mellon will not Immediately or
| subsequently begin the negotiations sug-
gested?" the Democratic leader in
| quired.
Mr.. Mellon emphatically will not be-
gin negotiations for reconsideration of
this debt" Reed replied 1T is absolutely
| and unqualifiedly untrue. There is no
expectation that he will at this time or
any other time open up such negotia-
tionS."
Under the present arrangement,
Great Britain is receiving more from
the continent than she is paying to us.
1t is beside the mark to discuss the
burden on the British taxpayer because
he does not contribute one cent to
what is paid us
Robinson pointed out that Britains
deprecated currency had taken trade
away from the United States.
by going off the gold standard"
Reed replied, Great Britain has hurt
our trade substantially. BY doing that
she has made an invisible cut in the
wages of her people by 80 per cent.
tariff and the revival of trade conse-
quent to that is very marked"
Strong opposition to the payment
of war debts owed this country in the
deprecated currency of Europe was
voiced by Senator Joseph T. Robinson
of Arkansas, Democratic leader of the
Senate.
The Arkansas Senator took as his
text published report that when An
drew w. Mellon, newly appointed Am
bassador to Great Britain, opens ne
gotiations on the war debt situation,
those negotiations will look to pay
ment by Great Britain and other debtor
nations in the currency of those ma
tions
The announcement, apparently on
the authority of the administration.
that the first official action of Ambas-
Sador Mellon will be to reopen negotia-
tions with a view to readjusting the
contracts now in force so that Great
Britain and other nations will be re-
lieved from the hardship of paying war;
time and postwar obligations in de-
preciated currencies, prompts the sug-
gestion that disturbance of existing
agreements of the United States,
through its diplomatic agents, may
Continued on Page 2, Column A.