Evening star., 1933-02-07
$4,000, 900, or II Per
Cent of Obligations, Is Re-
ported to Be New Proposal
Now Being Considered.
FLOATING FOREIGN BONDS
IN AMERICA HELD LIKELY
Lindsay Presents American Views,
Declared Backed by President
Elect Roosevelt, at Farley of
big Five'-Members Expected
to Come to Washington.
BY CONSTANTINE BROWN.

The British cabinet today was
reported considering proposal
to suggest to the United States
that the entire war debt of SILL
500,O000OO owed the American
Government by European nations,
be paid in a lump sum of about
$2,000,00O,000 or about II per cent,
1t was learned from authoritative
quarters here today.
London dispatches overnight
declared that the cabinet was
considering a settlement of the
British debt, but reports received
in diplomatic quarters here in
dicated that the British sugges-
tion would be payment to cover
the war debts of all the European
debtor countries to the United
States, Great Britain thus becom-
ing once more the spokesman of
Europe in her dealings with
America.
Sir Ronald Lindsay, the British Am
baSsador, arrived in London yesterday
and reported to his government the re-
suits of his canvassing the debt situa-
tion with President-elect Roosevelt and
with the most prominent members of
Congress.
It appears that Sir Ronald was able
fn tho iY1T1rocciOn m hic
ernnent that lump-sum settlement
would be acceptable to the American
Government and to the Congress under
specific conditions.
Most European countries expected to
settle their indebtedness on the basis
of the Lausanne agreement, whereby
Germany was allowed to reduce her
reparations by 80 per cent.
The offer which Continental Europe
expected to make America was just
a little over 81 ,000. 100000.
The British government, acting upon
the advice of Sir Ronald, agreed that
such a sum could not be acceptable to
the American people, and has tentative
about II per cent OF the actual in
debtedneSS.
Financing Discussed.
Paris and London markets are report
ed to be willing to finance Europe to
the extent of $4,000, 200, 900 at a rea-
sonable rate of exchange not exceeding
5 per cent. The opinion of the princi-
pal bankers is that at such a rate of
interest the issue could be oversub-
scribed In America alone within less
than "a hours. The French and British
bankers think that they could finance
whatever portion of the loan might be
allotted to them, in no time.
The main difficulty which may arise
at the coming negotiations will be the
question of the economic counterparts
Europe may have to make in order to
induce the American Government to &C
cept such a settlement
For the time being the British gov
eminent stands pat on its determina-
ton not to complicate the debt nego-
tiations with economic discussions such
as a possible reduction of the tariff
rates and the return of Great Britain
to the gold standard.
May Change Attitude.
But there are clear indications that
the British may change their attitude
within the next few weeks Macdonald
has kept remarkably silent during the
last few months on the whole matter of
debts and economic agreements. A good
many prominent Englishmen. like LORD
Snowden, have come out frankly against
the Ottawa agreements, and men like
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