Evening star., 1932-09-14
WAR DEBT TALKS
OFFICIALLY DENIED
All Rumors Regarding Such
Conversations Held Spec
uIatiVe.
BY CONSTANTINE BROWN.

In official quarters, it was reiterated
today that no conversations are being
carried on officially or unofflcially. be-
tween representatives of the American
Government. here or abroad, and the
allies debtor nations. regarding cancella-
ton. reduction or postponement Of the
war debts to the United States.
All rumors of such conversations 1t
was stated authoritatively. are either
mere speculations due to the fact none
Of the debtor nations has included in
its budgets for this year any sum for the
payment of the installment due on
December Is, or are spread for political
purposes.
Cannot Make Promises.
1t is obvious, 1t was stated that the
administration cannot make any prom
ises to reduce or to cancel the foreign
war debts when such decision rests
ultimately with Congress, and 1t is i'm
possible for the President to bind the
country when he cannot say what Con-
gress will do if the administration de-
cided to reduce the debts.
But even II the administration were
prepared to discuss these debts with
Great Britain and France, 1t is most
unlikely that these two countries, know
! ing that a promise Of the a6ministra-
ton not supported by the Senate and
the House means little, should be will
ing to open discussions regarding the
revision of the war-debt agreement
| Whether the debtor countries will
/ keep their obligations in December Is
unknown at the State Department and
| the Treasury Department 1t is stated
that Great Britain has sufficient bal
ance in its budget to meet this year S
| obligations amounting n
/ 600 900. France, in spite of the deficit
OF this year, also can pay the Install
Ment due this Winter, and so can the
| other minor debtors.
OF two important debtor countries II
is believed that for her own reason
Great Britain will do her utmost to meet
her obligations. The British investors
/ have nearly $40 900 900 900 invested in
South America alone. Some OF the
South American republics already have
defaulted. but others are making serious
efforts to meet their obligations.
British Prospects
The non-payment by Great Britain
| Of her obligations to the United States
undoubtedly would be followed by the
| non payment of this years interest and
| amortization by all the South American
states which owe money abroad, and
Britain cannot afford to have this hap
| pen without serious consequences to
| her own financial structure.
France, however, is in different pO-
sition, as her investments outside Eu-
| rope are comparatively small Fur
| thermore, she has stronger grounds to
| refuse to pay her annuity to the United
States than Great Britain, for the rea-
son that the French Parliament has
ratified the Berenger- Mellon agr. ement
| with the proviso that she woul cease
to pay the United States if Germany
ceases to pay reparationS. Thee Is nc
such provision in the ratification of the
Anglo American debt agreement. Con-
sequently, while France can refuse pay
ment without much harm to her inter-
national credit, Britain cannot.
| But Britain is reported to be tied to
France by an agreement signed at Lau-
same last July whereby the two coun-
tries agree to have a common policy
regarding the question Of debts. This
means one country cannot pay the De-
! cember annuity without first consulting
, the other, and if France deems that a
J payment by Britain alone might be
prejudicial to her interests. she can pre-
| vent Britain from keeping her obliga-
| tions.
Hazy About Future.
Under these circumstances, the re-
sponsible departments in Washington
are as hazy about the future action OF
the debtor countries as the genera
/ public.
There have been reports that the
/ former allies intend making an offer OF
a cash settlement. based on the repara-
! tions settlement between the allies ano
| C'eri,any, but so far there has been nc
official or unofficial approach from any
of the debtor government regarding
such an agreement.
From the strictly oficial point of view
it is stated, the United States Govern,
ment expects to be paid the ful
| amount due at noon December Is, since
the debtors have not availed themselves
of the right to ask for a suspension o.
the payment Of the principal due or
that date, three months before the deb
natures.
| Privately, however. it is admitted th'
prospects of the United States Treasury
receiving some $3.50 COO 900 this year are
extremely remote. But as to how the
former allies and the American Govern
ment will handle this situation Is, FOL
the present, everybody's guess. Tht
whole matter depends on the results o.
the presidential elections in the Unltee
States and on the international poEtl'
cal situation throughout the world.