Evening star., 1933-06-15
ROosevelt's Debt Statement
Opposed to Economic Com ference Taking
Up War Obligations.

changed in November and December
last.
His majesty's government at that
time decided to make payment OF the
amount due on December IS, but they
indicated clearly that this payment was
not to be regarded as resumption
of annual payments contemplated by
the existing agreement and they an
nounced their intention Of treating this
payment as capital payment of
which account should be taken in any
final settlement
Cites Abnormal Times.
Finally they pointed out the proce-
dure adopted must obviously be excep-
tional and abnormal and they urged
upon the United States Government
the Importance of an early exchange
of views with the object of concluding
the proposed discussions before June Is
next in order to obviate general break
down of existing inter-govemmental
agreements
His majesty's government in the
United Kingdom adopted this proceed
ure because they recognized the peculiar
position in which the then United
States administration was placed and
the impossibility of their undertaking
any effective discussion of the problem
at that time.
His majesty's government acted,
however, on the understanding that
the discussion would take place with
out delay upon the provisions of the
existing agreement in all It's aspects,
so as to arrive at comprehensive and
final settlement and in the belief that
payment on December Is would greatly
increase the prospect of satisfactory
approach to the whole question.
Anxious to Find Accord. =.
Negotiations were accordingly start
ed even before the new administration
was inaugurated; and his ajesty's
government in the United Kingdom
have been most anxious to pursue them
as rapidly as possible.
"On the occasion of the prime min
ister's visit to Washington the Presi-
dent and his advisers made preliminary
explorations as to the basis of clearer
understanding Of the situation. For
reasons not within the control of either
government. however, it has not yet
been possible to arrive at definite
conclusion of these negotiations.
"A speedy conclusion Is, however,
urgently needed. The treatment of in
ter-governmental obligations must
closely affect the solution of the prob
lens with which the world conference
has to deal, because they cannot be sep
arated from influences which have
brought the world to its present plight.
For instance, 1t is generally agreed
that one of the first and the most
essential Of our aims should be to in
crease the general level of commodity
prices. It may be recalled that after
the Lausanne Conference there was a
marked tendency for prices to rise, but
that this tendency was reversed when
the prospects of final settlement of
inter-governmental obligations receded
while the December payment was ac-
companied by sharp fall in prices
which was felt in America at least as
much as in Europe. Experience, there
fore, appears to show that the effect of
these payments upon prices is very
direct.
Urges Conference Action.
"In the opinion of his majesty's gov
ernment 1t is essential for the success
of the conference that the delegates
should not be hampered and harassed
by doubts about the possibility of a
satisfactory settlement of war debts.
Payment Of further installment of
the debt at this juncture would in
evitably be judged to mean that no
progress whatever had been made to-
wards such a settlement and would,
therefore, deal q damaging blow at
the conference Of the delegates.
In the circumstances and in view OF