Evening star., 1933-04-09
MacDOnald's Visit to
U. S. Raises Questions
BY A. G. GARDINER.

LONDON, April Announcement
Of Premier MacDonald's intention to
sail April is in response to President
Roosevelt's invitation to visit WASH
| ington has been received by the British
public with mingled feelings.
Mr.. MacDonalds frequent absences
from London are creating the disquiet-
ing impression that the premiership is
not IN actuality occupied and that
effective control OF affairs is passing
| out OF his hands, without any clear in
dication of where authority rests. This
impression Is deepened at this moment
by the critical situation in respect to
| relations with Russia, with whom Brit
ain is on the brink of complete r,lp-
ture of diplomatic and trade relations,
and by the fact that a momentous
budget Is to be introduced in Parlia-
ment before the Premier's return from
America.
No one questions the paramount i'm
portance of reaching an understanding
with the United States or the excep-
tional qualities of Mr.. Macdonald for
creating favorable atmosphere In per-
sonal contacts, but it is pointed out
that the character of his mission has
been so narrowed down as to represent
merely diplomatic exchange of civili-
ties. When the visit was originally sug-
gested, the idea was to hold formal
discussions preparatory to the World
Economic Conference, but in the in
terval, the financial crisis in the United
States has changed the situation and
limited the scope Of Mr.. MacDonald's
mission.
Avoidance in President Roosevelt's
invitation Of any reference to the war
debts is taken as excluding this vital
subject from consideration, and it Is
recognized that the attitude of Ameri-
ca on the question has sensibly hard
ened.
Seven weeks have passed since Am
bassador Lindsay returned to Washing
ton from his conference with the Cabi-
net in London, and it is evident that no
advance has been made toward a solu-
tion of the war debt question. Nor has
Norman Davis visit to London regis
tered progress in the matter. AS re-
suit of conversations which occupied
nearly week, it was hoped that For
eign Minister Simon would be able to
arrange for the convening of the or
ganlZing committee of the World Eco
nomic Conference, and that the con-
terence itself might meet in London
about the end Of May. This hope now
appears doomed to disappointment.
The war debts still block the way to
the conference. The British government,
in proposing to Washington an early
meeting of the Economic Conference,
desired to avoid finding itself commit
ted to discussion of question vitally
affecting this country without some as
Surance that its case for consideration
Of the war debts would be recognized.
A matter of the utmost urgency is the
next half-yearly inStallment Of f2O,-
000,0C0 due to be paid to the United
States on June Is, and the London pro-
posal to Washington in regard to the
Economic Conference was accompanied
by request for a moratorium pending
discussions of a final settlement. It Is
understood here that this request was
not acceptable to the United States
Government.
Thus the 1mpaSSe Is complete. The
British view Is that the war debts are
one of the principal causes of the world
crisis and that until their baneful effect
is eliminated by cancellation or drastic
reduction, no effective progress will be
made toward the removal of the for
midable economic barriers obstructing
the road to world prosperity. In a word,
it has been presumed that negotiations
on tariffs, quotas, currencies and gold
would be preceded by negotiations for
a debt settlement But 1t is clear that
while opinion here is strengthening
that a debt revision settlement must
be the first step in the solution of the
economic crisis, the American people
are moving in the opposite direction.
Meanwhile, what shall be done about
the June Is payment? The budget, |
which is imminent, will disclose q heavy
deficiency and there is no possibility of |
increasing revenue by increased tax
alton, which has already reached the |
limits Of productive capacity. The gov
ernment, in the absence of an agreed |
solution. is faced with the alternatives
of borrowing to pay the war debt in
stallment and unbalancing the budget |
or of defaulting.
Some economists are in favor of un-
',alanGpg the budget in order to dimin-
ish TIE burden of unemployn 1t. but