Evening star., 1933-06-13
NEW NOTE OFFERS
PARTIAL PAYMENT
OF WAR DEBTS
(Continued From First Page.)

CONTINUED From First Page)
garding the contents Of the British
note. That is to say, whether the Brit
ish simply explain to the administra-
ton that on account of the present dim-
culties they cannot continue to stand
by the old funding agreement, OF
whether they connect it with the seal
ing down of the reparations of Ger
many contained in the last year Lau-
same agreement and are using that
as a reason for their request.
Token" Acceptance Indicated.
Should the note merely indicate
Britain's inability of continuing the
payments there is no doubt that the
token" payment. regardless as to how
small 1t is, will be accepted by the
American Government and the request
of the British to revise the total
amount will be granted. The Presi-
dent, it is said, will, be willing to
begin at once conversations with the
British Ambassador at Washington and
reach an agreement which will have to
be submitted to Congress for ratifica-
tion
But. should the British claim reduc-
tion of their debt on the basis of the
reduction granted by the form6 allies
to Germany on her reparations, 1t is
said in well informed quarters that the
President will refuse to enter into ne
gotiations with the British under such
conditions and If the payment of the
June installment is made conditional to
his acceptance Of this theory, the pay
ment will be refused.
Premier Ramsay MacDonald's speech
yesterday bringing UP at the outset of
the economic conference, the debtques-
ton, which is not included in the
agenda and has been agreed upon to
be discussed in Washington between the
President and the representatives OF
the debtor nations has caused a painful
impression in official and congressional
quarters.
There is a feeling that the British
premier, realizing danger Of the eco
nomic conference not succeeding, has
been preparing the ground to place the
responsibility of the eventual failure of
the conference on the dOorSteps of the
White House and the American Con-
gress.
Debts Held Recovery Barrier.
The European public opinion is al
ready mobilized to see the debts as the
main barrier to economic recovery. The
European statesmen have limited this
repeatedly to the American statesmen
every time they had an opportunity to
discuss the debt question with them.
They have been invariably answered
that while it is admitted here that the
debt problem is irksome to the debtor
nations, the amounts involved are not
really important enough to really upset
the economic balance of the world.
Yesterday Mr.. Macdonald, despite
the gentlemen's agreements not to bring
the debts up at the conference and per-
init the Economic Conference to pro-
ceed without injecting into it this con-
troversial problem, brought this ques-
ton up, giving the impression that un-
less it was solved at an early date it
might Shipwreck the economic parleys.
Although it is admitted that 'all is fair
in love and diplomacy" the Macdonald
outburst created a. deep impression not
only among the American delegates in
London, but also in official quarters in
Washington.
1t is felt here that the British pre-
mier was forced to make his speech in
jecting the debt question in the eco
nomic parleys by the fact that his cab
inet-especially Sir John Simon and
Neville Chamberlain-remind him of
the gentlemen's agreement reached last
Summer at Lausanne whereby Great
Britain, France and Italy agreed to
stand or fall togther on the debt ques-
ton.