Evening star., 1932-05-25
Europe's Moratorium Payments.

AIh0ugn II lacks the elements OF
surprise. it Is gratifying news that Eu-
ropean governments are arranging to
pay the l93l-l932 war debt annuities
for which the United States, under the
Hoover moratorium. granted ene-year
abatement The British and American
governments. through normal diplo-
matte channels, are about to conclude
negotiations to that end. Finland and
Greece have already signed formal
agreements for the same purpose. Our
other European debtors are expected to
follow suit in due course, until the en-
tire sum OF s252 900 900 has been pro-
vided for. The moratorium plan pro-
vided fer repayment over spread OF ten
years, with interest at the rate OF four
per cent, specially fixed by Congress
These arrangements, it should be
understood, apply exclusively to the
war-debt payments comprehended by
the current moratorium year. The fu-
ture of the larger question Of the debts
themselves remains problematical. Next
months Lausanne reparations confer
ence Is not expected to advance mat
ters materially. Whether or not Eer
creditors grant Germany a long or short
term moratorium on reparations, that
will not. Of itself, affect the relation
ship between Americas war-debt credi-
tors and the United States Treasury.
There is disposition in many trans
atlantic capitals to consider that the
precedent set by the Hoover moratorium
in interlocking rsplrat.ons and war
debts will automatically renew itself, if
Lausanne gives Germany fresh grace.
That is not the conception of the sit
uation held by Congress. which is the
supreme arbiter In deb: affairs SO far
as this country is concerned
Cabling to the New York Times. its
well informed London correspondent.
Mr. SelGen. reports ttat Britain docs
not expect to pay next years American
war Cebt annuity Of Sl33 900, 600, and.
furthe, more. does not believe the United
States viii drive her into default if she
does not pay. Chancellor of the E.
chequer Chamberlain his privately tcld
members of the House of Commons that
he had not ony made no provision in
the regular budget to pay the American
debt. but was not devising any supple
mentary budget to provide for such
payment. This does MT mean that
Britain has the slightest intention of
defaulting 1t will not be default or
reputation if she cannot pay the full
amount VIXEN it falls due, but gets either
an extension OF time or a reduction of
the amount. or both. 1t is in ex-
pectaticn Of scme such development thc;a
Britain is now aweiting the results Of
the American election"
The British government has not
asked anything of the United States
and is not planning to do so. Mr.. Sell
den states. but he adds, significantly,
that lit expects the logic of events to
convince Washington as we'll as Lon
don that there should be new DEAL"
One OF Britains moving reasons for
seeking new deal" is the sterling ex-
change situation. British debt arrears,
as we'll as future annuities, will be pay
able in gold dollars. These will amount
to considerably more in pounds than
would have been the case before Brit
aims abandonment of the gold stand
ard. In 1888 Britain is supposed to pay
us S183, 100000. At the old parity that
would have meant s37 ,s3e ,5o6. At pres
ent exchange it would take f4s,s72, 1926