Evening star., 1933-02-26
BRITISH LUMP.SUM OFFER
LIMIT ON DEBT PAYMENT
Deadlock Likely at Farley as Irrecon-
cilable Public Opinion Ties Hands
of Roosevelt and Macdonald.
BY FRANK n. sIMONDs.

v VIEWED superficially, the progress
Of the Anglo-American phase Of
" the debt question in the weeks
since December Is at once con-
fllsing and contradictory. Be-
fore December 15-the date Of the lat
est semi-annual payment-the British
declared payment impossible. But on
the due date they paid. Then parallel
with discussions between President and
review Of the matter after March 4,
Neville Chamberlain, chancellor of the
conference there could be no "swap-
pear that the wind has changed and
the sky is to be the limit Of approaching
conversations.
The unfortunate effect Of this ap-
parent lack Of stability in British policy
Is obvious. PROFESSIONALLY it has
created the impression here that the
British are blufnng and that q skillful
and firm attitude on the part Of the
incoming President and Of his Secretary
Of State will sufdce to acquire for the
United States substantial payments
and In addition concessions in the mat
ters Of the gold standard and tariff
walls.
In fact, however, British purpose has
been and remains unchanged. And that
purpose Is disclosed In q resolution not
TO make any more debt payments.
Since that day more than q decade ago
when the British uttered the Balfour
note, British policy has centered upon
the purpose to pay out not more than
it received on account Of debts and
reparations. And, roughly speaking, it
has realized its purpose. Before repara-
lions and settlements with its own
debtors were arranged the British had
paid US perhaps $500, 100000. They
have not made that sum iup but, since
the system Of debts and reparations
was fully established, their income and
out-payments on these scores have lust
about balanced.
Now they have reached the point
where they themselves are going to be
paid no more for debts or reparations
As . consequence they have come to
the decision to pay no more. It Is
would be physically impossible in the
long run and Immediately harmful to
all concerned as well. On this ques-
ton there Is no difference In any Sec
ton Of British political or public
opinion.
Misinformed ON U. s. Views.
In December, the British government
and public were misinformed as to
American public opinion. They were
told-and they believed-that Q rapid
change was taking place on this side
OF the Atlantic and that II no bruaque
refusal to pay intervened to arouse pop
ular resentment, by next June, Amer
tca would be. ready to agree to. bury the
debts With Scenes small lump SUM pay
ment TO serve - 8 tombstone. A q
consequence they paid, but only as Z
means Of insuring that they would get
OF completely IN June.
When. following the December nav.
ment and the outbursts in this country
provoked by French default, the British
suddenly perceived that American public
opinion was sttll miles away from any
thing like the settlement British opinion
was expecting, there was reaction and
an immediate conviction that the Amer
ican people must be brought to see the
realities Of the situation This reaction
eliminated in the decision to treat
debts not as debts but as obstacles to
recovery-world recovery, not British
rehabilitation alone.
But when the realistic method failed
as the method Of expediency had failed
In December-the British took still
another tack. This time they announced
their readiness to discuss with Mr..
Roosevelt not merely debt settlement
but gold standards, tariff and all other