Evening star., 1933-10-11
ACHESON STUDIES |
BRITISH DEBT PLEA.
Presentation Of Case to Be
Resumed at Conferences
Tomorrow.

American OfnclalS StuQleO ITedt
Britains plea for war debt reduction
today while the London governments
spokesmen prepared to continue their
exposition when conferences are re-
sumed tomorrow. 49,.
Sir Frederick Leith-RoSs of the British
treasury. at the first formal meeting OF
the conferees yesterday. said his gov
ernment based its request upon stun
ming change in world economic con-
ditions, which no one could nave 1ore-
seen when the British debt was funded.
In addition he asserted the loans III
which the debts originated were far
from commercial 1, character and were
granted as m1Ar OF necessity SO
Great Britain might continue to do its
part in the war.
At the first meeting. Leith-Ross was
assisted by Sir Ronald Lindsay. the
British Ambassador here. and L. Il.
BeWley. economic adviser TO the British
embassy For the United States. Under
secretary of the Treasury AcheSon was
the principal spokesman. His aides
were Frederick Llyesey. assistant adviser
to the State Department, and Daniel w.
Bell. commissioner of accounts and de-
posits in the Treasury.
Documents Produced.
The British produced documents and
statistics to Nack their request for
reduction in the SO 500 900 900 total of
interest and principal payments Sched-
uled for the next 81 years.
Acheson described the American atti-
tude as one of 'sympathetic listening"
AT the sa re time the American repre-
SentativeS were alert to the difficulties
they must 5urmount in reaching Solu-
ton. Essentially. their task is that of
reconciling the popular British demand
fol ar end 20 war debt payments with
the tnsistence of the American Congress
that the debts be paid in full as funded.
After yesterdays conference, AcheSon
met newspaper men and described what
had taken place Sir Frederick began
with the origin of the debts. he said,
and traced their history. There was no
suggestion. the urderSecretary added. of
what the London government might
have in mind to offer as a basis OF
settlement AS Acheson outlined it. the
British argument took the following
course:
Sir Frederick stressed that the Brit
iSh government made extensive pur-
chases of American goods during the
war, amounting roughly to more than
Sl2 1000 0C0 600 before America entered
tie conflict.
He went over the sources from whic..
his government derived the funds to
pay for these-trade balances. a mobli-
Zation of American gold and securities
owned by British citizens. shipping Serv-
ices and commercial loans.
Loans Declared Necessity.
Just before America entered the war
tho Rrit1Sh CanapItU mako a6Gi-
tional purchases here was virtually ex-
hausted. but with the Washington Gov
ernment an active ally, the situation
was changed. The question of how
Great Britain was to carry on was
solved by loans from the United States
Treasury.
These could not be regarded as
commercial loans, he said. They were
a matter of necessity They were used
to pay for materials already bought
and to buy additional war supplies,
largely munitions. These were put to
their intended destructive use and SO
cannot be said to have any continuing
capital value
Loans after the armistice. Sir Fred
erick said. were for the purpose Of
settling war contracts and the pay
ment of interest on leans previously
existing.
The British spokesman then turned
to comparison of the settlement given
his country with that accorded other
debtor allies at a later date. On the
basis of the 1923 funding agreement,
he said. Great Britain would be re-
paying SO per cent of all money ad-
vanced, while the French were let off
with 81 per cent payment and the
Italians with "a per cent.
Forty per cent of American advances
to allied nations went to the London
government, he added, while 80 per
cent of what the United States has
received in repayment has come from
Great Britain.
Economic Conditions Discussed.
Sir Frederick proceeded to discuss
tion to the debts Methods of payment.
he said, were limited to goods and
services
When the settlement was made he
added, the thought was that there had
to be marked increase in British ex-
ports to America or an extensive de-
crease in imports from the United
States. Instead, he continued. both i'm
ports and exports have fallen to excep-
tionally low levels.
He said the American tariff had in
terfered with payments in goods and
thus limited the scope in which trans
fers could be made.
The Briton also told the American
officials that during the war his gov
ernment advanced 100000 pounds,
nearly $4,000, 900 900 at the then cur
rent rates of exchange, to its allies.
All they have paid in return. he said,
has been passed on to the United
states except s15O.OO0,00O Before the
war, he said, the British and American
public debts were approximately the
same. while during the conflict the
British debt increased by much
greater proportion than did that of the
Washington Government.
Acheson said monetary stabilization,
the relation between the dollar and the
pound, did not come up.