Evening star., 1932-12-12
nv tie Associated Press.

ny the Associated Press.
-HE text of Secretary Stimson,s
reniy TO Great Britain, through
An6assador Lindsay, refusing to
ACCEPT, payment Of the Decem-
her Is war debts inStaliment
with reservations follows:
"I learn with satisfaction OF tine oe-
cision of your government 10 MAKE
nav1nsnt of the amount due on De-
reroIer 15 under the funding agree
ment of June Is, 1928 But IN view
of the statement in your note that IN
the view of His Majesty's government
therefore the payment to be made ON
December is is not to be regarded as
a resumption of the annual payments
contemplated by the existing agree.
ment,' must call attention 10 the iact
that the Secretary OF the treasury Llas
no authority to accept payment IRON
your government except as proSaueu
under the terms Of the fundlng agree
ment.
"As pointed out in my note OF OF
November %, 1892, there Is reserved 70
the Congress of the United states tne
ultimate decision in respect OF tne
funding, refunding or amendment o.
these intergovernmental obligations
has no power to amend or to alter
them either directly or by implied com
mitment. Accordingly, 1t should pe
understood that acceptance by the sec
retary Of the Treasury OF funos ten.
dered in payment of the December l;
! installment cannot constitute approVa
of OF agreement to any condltlon O
declaration of policy inconsistent VIII
| the terms of the agreement. the sun
| so received must be credited 10 primer
pal and interest as provided therein
"I therefore assume that in para
graphs five and six of your note vol
are not proposing to make this pay
ment otherwise than in accordanct
with the terms of the funding agree
ment, but that you are stating you
views as to steps which your govern
ment may desire to propose subse'
quently after a re-examination OF th'
entire problem.
IT have emphasized these facts witt
view to avoiding any possible future
misunderstanding. I believe that ou
| future course as pointed out by oul
correspondence is clear.
"In your first note Of November l.
you asked for an exchange of view
at the earliest possible moment witt
respect to the regime of intergovern
mental financial obligations and, II
your second note, you welcomed tht
expression of our willingness to facili
tate such discussions, and referred Il
the desirability of a close examination
between our governments OF the who'll
subject In preparation for the inter
national economic conference. In m.
last note of December 8 replied that
the President of the United States wa!
prepared through whatever agency may
seem appropriate, in cooperation with
your government to survey the entire
situation Gin which the debt of the
British government to the United
States necessarily plays a part) and t.
| consider what means may be taken Il
bring about the restoration Of stable
currencies and exchange, the reVlva
Of trade and the recovery Of prices.
"But in the meanwhile, as Informed
YOU in my note of November %, greaf
| Importance is attached by our Govern
ment and people to the maintenance
of the original debt agreement in forct
and that a satisfactory approach to tht
| whole question would be greatly In
creased by the pursuance OF such
policy.
"It would seem to me therefore tt
be undesirable that any steps be taker
which, by causing misunderstanding
would increase the difficulties that mus