Evening star., 1933-06-15

British and American notes on debts
the President made the following state
ment yesterday.
THE British Government has today
announced a payment to the United
States of 100000 with a note indi-
eating that this payment is to be con-
sidered as an acknowledgement of the
debt pending a final settlement
1T has in its accompanying note
pointed c't circumstances that have
induced it ID take this action.
Such payment does not, of course,
in any sense prejudice the freedom Of
either government in any subsequent
discussion of the entire debt question
which will take account Of this and
other debt payments.
Il announced in November. 1882, a
policy to the effect that debtor may
at any time approach a creditor with
representations concerning the debt
and to ask for readJustment of the
debt or its terms Of payment. Under
such circumstances the debtor govern
ment makes such representations as it
deems of importance with respect to
the desirability of any readjustment in
the terms already agreed upon.
The British government availcd it
self of this principle following the pay
ment Of the December Is payment and
had informal discussions concerning
the debt with the British Ambassador
even before my inauguration.
"On the occasion of the visit of the
prime minister of Great Britain in April
further exploration of the subject was
made by us and additional discussions
were held by the experts OF the two
governments.
Will Avoid Discussion.
"Time and circumstances would not
permit any definitive conclusions in
these discussions, because at the mo-
ment both governments were vitality
concerned in making preparation for
the World Monetary and Economic Con-
ference in London.
1T seems the part of fairness and
wisdom to postpone formal representa-
tions on the debt subject until later.
Meanwhile the World Economic
Conference is beginning under favor
able auspices, and it is virtally neceS-
sary that during the opening days OF
the conference difficult and possibly
protracted discussion Of the debts be
avoided.
In a spirit of cooperation, have
as executive, noted the representations
of the British government with respect
to the payment Of the June is INSTALL
ment, inasmuch as the payment made
is accompanied by clear acknowledge
ment of the debt itself.
I'm view of those representations and
of the payment, have no personal hes
itation in saying that I do not char
acterize the resultant situation as a de-
fault
Beyond this the law and the Con-
stitution do not permit me to 60. The
American public understands clearly
that the settlement under which these
debts are now being paid was made
under the authority of Congress and
that Congress alone has the right to
alter the amount and method of pay
ment of this debt.
Further than this, the Congress in
December, 1881, in approving the mora
torium in June of that year, specifically
set forth that the debt should not be
Cancelled or reduced.
Under my constitutional power, and
in accordance with the terms of the
policy which have set forth, can
entertain representations OF the British
government concerning the entire debt
settlement and the British government
has requested that such opportunity be
afforded.
Doesn't Include Debts.
IT have, therefore. suggested to them
that such representations be made In
Washington as soon as convenient.
LAS q matter Of information to the
American public. I want to make 1t
clear that the Economic Conference now
being held in London does not include
in its program any consideration OF the
- tc m
the United States.
THE American delegates have been
instructed not to discuss debts with the
representatives of any Of the debtor
governments.
This Is in accordance with the
further principle that have felt i'm
portant, that the debts be considered
on their merits and separate from ether
international economic questions.
II have further informed the British
government that such representations
and suggestions as may be made to me
by the British representatives, when
they discuss the problem in Washington,
will be submitted to the Congress for
information and consideration when the
Congress next meets"
Text of British Note.
BY the Associated Press.
Sir Ronald Lindsay's note to the State
Department follows:
I'm reply to the note handed to me
by the State Department on June
am directed by my government TO
make the following communication to
you:
1T will be recalled that the general
views of his majesty's government in
the United Kingdom on war debts and
on their relation to present world diff
ficulties were explained in notes ex-