Evening star., 1932-11-14

ON. BOARD PRESIDENTIAL SPE.
CIAL EN- ROUTE TO WASHINGTON
November I4.-The full text Of the
telegram sent yesterday by President
Hoover to Franklin D. Roosevelt. IN
viting the President-elect to pre-
Inauguration conference, follows:
GOV. Franklin D. Roosevelt,
Albany, N. Y:
"The Secretary of State has Informed
me that the British Ambassador, on
behalf Of his government, has handed
him q note stating that they believe
that the regime of intergovernmental
financial obligations as now existing
must be reviewed; that they are pro-
foundly impressed with the Importance
OF acting quickly and that they ear
nestly hope that the United States
Government will see its way clear to
enter into an exchange Of views at the
earliest possible moment
"The British government further
asks for a suspension of the payments
due by the British government to our
Government for the period OF the dis
cussion suggested or for any other
period that may be agreed upon.
This last suggestion clearly relates
to the payment of $95,000,oo0, which
will fall due on December IS, 1882. I
have requested the Secretary of State
to transmit you a full copy OF that
note.
"The Secretary of State has also Just
been informed that similar requests
are to be made by other debtor govern
ments which likewise are obligated to
make payments to the United States
on December Is next. One debtor
nation defaulted on payment due
November 10 and another debtor ma
ton served notice on our Government
Of its incapacity to make payment
due in December. Thus our Govern
ment is now confronted with a world
problem Of major Importance to this
Nation.
Congress o. KID Moratorium.
"The moratorium which I proposed
year ago in June, that Is, the years
postponement of intergovernmental
debts and the spread Of the deferred
payment over 10 years, was approved
by Congress.
ct served a great purpose in stay
ing destruction in every direction and
giving to Europe a year in which to
realize and SO modify their attitude
on solely European questions as to sup
port their credit structure from a great
deal of further destruction. They have
made very substantial progress during
that year in financial adjustments
among themselves and toward arma-
ment reduction.
Practically all of our World War
debt settlements were made not by the
Executive, but by the commission
Tod 11xfo NJ rf q
approved in the form of legislation
enacted in both houses.
"a year ago in recommending to the
Congress ratification Of the moratorium
presented a statement of my views as
to the whole of the relationship of
ourselves to our debtor countries and
pointed out that debts to us bore no
to debts between other ma
tons which grew out of the war.
'At the same time recommended to
the Congress that a new debt COM
be created to deal with situa-
tions that might arise owing to the
temporary incapacity of any individual
debtor to meet its obligations to our
country during the period Of world
depression
Congress declined to accede to this
latter recommendation. 1t passed joint
resolution reading IN part as IolloWS:
"'It is hereby expressly declared to
be against the policy Of the Congress
that any of the Indebtedness Of foreign
countries to the United States should
be in any manner Cancelled or re-
duced; and nothing in this joint reso-
luton shall be construed as indicating
q contrary policy or as implying that
favorable consideration will be given
at any time to a change in the policy
hereby declared
"The limitation to purely temporary
and individual action as to those in
capable of payment during the depres-
sion. expressed in the communique re-
ferred to in the British note and in
my Recommendation to the Congress,
was evident in these documents.
"The refusal of the Congress to au-
thorize even the examination of this
limited question, together with the
above resolution, gave notice to all