Evening star., 1933-02-05
DEBT TALK CENTERS|
ON %,910,o1O,0)D||
Terms of Agreement With
Britain Raised by Forth
coming ParIey.
BY the Associated Press.

Dy the Associated Press
When President Roosevelt and Pre-
mier Ramsay Macdonald, or whatever
spokesman Great Britain chooses, sit
down to discuss war debts early in
March they will talk about $4,500,-
100000.
That is approximately the figure the
United States Treasury reports show
Britain owes this country. and unless
some adjustment of the debt agr greement
is arranged before June is another in
terest payment OF about $4,000 900
will be due.
Great Britain borrowed approximate
1y $4,000, 100000 from the United States
and with accrued interest at per csnt
its total obligation was Salts, ,30O,0 600
when a debt funding agreement was
reached June 10, 1923.
Stanley Baldwin. then chancellor of
the exchequer. negotiated the British
funding agreement with the American
World War Debt Commission headed
by Secretary Andrew w. Mellon.
Britain's Debt Terms
Great Britain agreed to repay the
whole amount Of the loans made to her
by the United States and accrued in
terest in g. annual installments with
interest at the rate Of 3 per cent for
the first 10 years and 3.5 per cent for
the remaining 50 years.
This interest reduction is equivalent
to a cut of 30.1 per cent on the total
debt to maturity as compared with pay
ment at 5 per cent.
Great Britain's annual installmentS
for the first 10 years vary from $780,
100000 to Sl6l 100000, and for the
last So years range from $l78,24o. 600
to sl87,350,000. Payments on principal
are due December Is and interest pay
ments are to be made seni-annually
on June Is and December Is.
Great Britain sent a note with its
payment of SOS, 5,55O.000 on December Is
Of last year indicating it would be the
last unless there be some revision OF
the debt agreement.
In the act of Congress creating the
Debt Commission 1t was stated that the
rate of interest in funding agreeme9t'
gould be not less than 4.25 per CeCt
and the commission tried to arrange f.
refunding the debts within Is years.
Approved by Debtors.
This was opposed stoutly by thc
debtors. Stanley Baldwin announced
before coming to Washington that such
terms could not be accepted by Great
Britain, as the annual payments would
be too burdensome.
Lord Balfour announced the British
policy Of favoring the universal cam
collation. of interall.ed debts and Ger
man reparations a year before Great
Britain made its funding agreement
with this country. But the United
States always has turned deaf ear
to this proposal. as it accepted no repa-
rations All succeeding British govern
ments have approved the Balfour policy
and Britain has included it in her sub
seuuent debt settlements with former
allies.
The Lausanne Preparations Confer
enca last Summer agreed to q cut OF
approximately 80 per cent in repa-
rations claims on condition that inter-
governmental debt settlements also be
revised
The moratorium Of one year on in
tergovernmental payments. declared IN
June, 1881, under leadership OF Presl-
dent Hoover, was resisted by many
members of Congress as an opening
wedge for debt cancellation. and Con-
eress is on record fatty against can
collation..
Roosevelt Against Canceling.
President-elect Roosevelt also Is
against cancellation and opposes re-
vision unless debtor powers VII! oHer
trade concessions beneficial to Amerl-
can agriculture and labor in exchange
for debt reduction.
"What have you to offer?" is believed
to be the question President Roosevelt
will ask the British representative
when they meet in the White House
early in March.
The President-elect indicated IN his
campaign speeches that he would IN
augurate tariff bargaining policy 10
widen the opportunities for the prooucts
of American farms and factories.
The Senate has adopted resolution
calling upon the Tariff COMMISSION nnias 3n
and other governmental agencIeS ot ~
sIInnlv all the tariff information that
might be helpful to the incoming ao-
ministration in such a procedure.