The Waterbury Democrat., 1932-12-12
Britain Is Much
 Calrner on Note
to France. A reply was postponed
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to France. A reply was postponed. Joel then asked if the govern ment would introduce special leg islation to permit withdrawal of the gold from the Bank of Eng. land. Chamberlain said no special legislation was requested. A conservative members of the government would consider send ing American 120 copies of the story of King Maids" (Everything maids touched turned to gold-in- cluding his daughter
 Lambert wanted to know, "as the American congress and French chamber are discussing this mat ter, may not this house be con- suited also before any payment is made?"
 "The house is being consulted and there will be perfectly free de- bate on discussion of every view point" Baldwin replied, "but cannot see at present any need of putting down a resolution"
 Macdonald on his arrival said he had not yet seen Stimson's latest note. He showed signs of his rcent cold but said he was recov- ering.
 The British government pre- pared for an urgent cabinet meet ing to-day to decide between fur. ther negotiations on payment of its $95,550,5O0 war debt installment and outright default.
 The OAtyowvS =, Av< wr,oo s~1kzS s-A~ such action by the suddenness with which the United States govern ment in a record-breaking ex- change of diplomatic notes re- jected proposed payment with reservations"
 - Further negotiations if any. are expected to set forth the claim that the state department misin- terpreted the British note delivered to Washington yesterday.
 The terAs and the speed of Sec- retary Stimson's reply created the greatest sensation in years in Fleet street, London's Journalistic center. The American note was available at a. m. to-day. All morning newspapers made over'' late editions and gave Stimson's reply precedence over the latest British communication to Wash ington.
 Cabinet members were able to read the American note in the newspaper before they saw the of- ficial document, an unprecedented happening in diplomatic exchanges.
 London quarters usually well in- formed believed that twa courses were open to the British govern ment, the first new note claim ing that the one delieverd yester- day was misinterpreted, the second outright default. The case for misinterpretation was based on the ground that the British suggestion that the December payment be taken into account on final set- clement was open to dual interpre- tation.
 One interpretation was the ar- bitrary implication that Britain considered the debt funding agree ment with the United States ter- minated. and that the December payment will constitute the first installment under new agree mentA
 The secdnd interpretation was tHdC DTitdAny HI VIEW VI GuTpOe 5 anticipation of new debt funding agreements. considers that the De- cember paymentp although he last under the existing agreement, should become retroactive in the event of a new agreement.
 The second interpretation would mean that Britain would sheek to protect herself against default by any European nations on their debt to her.
 Outright default on the ground that Britain offered to pay, but that the United States declined to accept the payment. appeared to be the only alternative to further ne- gotiations.
 It was understood that Sir Rom aid Lindsey, British ambassador to Washington, flashed brief report on the American reaction to the British note. Government officials here immediately aroused leading cabinet members from their sleep and told them of the. changed situ- ation. A telephone message was reported sent to the Paris embassy for relay to Macdonald.