Evening star., 1933-06-15
PARIS AND WARSAW
!. Join IN DEFAULT
Italy Offers to Pay Million.
Finland Only Nation to
Send Fun Sum.
. Continued From First Page.)

q default" Mr.. Roosevelt said he had
granted an urgent British request for
a review of its existing debt agreement
and had suggested to the London gov
ernment that it bring its proposals to
Washington at a convenient date for
discussion, the result to be laid before
Congress for decision.
These developments were contained
In the formal note from London and
supplemental statement by the Presi-
dent, made public last evening stimuli
taneously with the explanatory speech
in the House of Commons by Chancellor
of the Exchequer Chamberlain.
The congressional response was i'm
mediate and loud In the Senate,
Fegular Republicans challenged the
development as "a breach Of faith" sf,d
d plain default ON a plain promise"
Administration men and Republican in
dependents sprang to the defense. Sen
ator Robinson of Arkansas, Democratic
leader, denounced the criticisms as evi-
dence of an effort to keep Congress in
session to hinder the Presidents
handling of the debt question and to
impair the American delegations in
fiuence at the London Economic Con-
ference.
Great Britain's note contended con-
tnued payment of the debts would tend
to restrain trade revival and nullify the
efforts of the London conference.
The American reply said the Wash
angton Government could not agree as
to the relation of the debts to world
trade, asserted Mr. Roosevelt had no
SRuthority to change the funding agree
kments, and emphatically reminded
Great Britain that final decision must
rest with Congress.
Mr RoOcauplf,c arp0n1rq nvinp state
ment, In view of the recent develop
.ments at London, reasserted that under
no circumstances will the United States
assent to a discussion of the debts at
the conference.
"The American delegates have been
instructed not to discuss debts with
the representatives of any of the debtor
governments" he said. This is in
accordance with the further principle
that ] have felt important, that the
debts be considered on their merits and
separate from other international eco
nomic questions"
During the debate at the Capitol
which followed publication of the notes,
Great Britain was sharply criticized
for raising the debts issue at the Lon
don Economic Conference. Senator
Robinson, Republican, of Indiana,
opened the debate.
This is the same Chief Executive"
said the Indianan, "who takes $400,-
900 900 from the veterans and under
takes today to take 10 per cent from
Great Britain, following the program
of the House of Morgan. Wall Street
and organized wealth. So long as the
President listens to Wall Street, that's
all we'll get from Great Britain"
Majority Leader Robinson replied by
describing the speech Of the Indiana
Senator as the beginning of an attempt
to delay the adjournment of Congress
and an effort to impair the Presidents
handling of the debt question and the
American delegations influence at the
London Conference.
He said the $4,000, 900 payment did
not mean yielding on the balance, and
the President from the beginning had
recognized that he has no authority
to alter in the slightest the existing
arrangement respecting the war debts. I
Senator Borah of Idaho, ranking Re-
publican of the Foreign Relations Com |
fnittee. asserted the President had not
changed the American debt policy in
the slightest.
"The British government owes the
balance just the same" he said. "or.
IN other words. in accordance with tne
terms of the contract. It is true the
President said he would not char
acterize the failure to pay the balance
as q default, but that does not change
the relationship"
Taking issue with Borah and the
Democratic leader, Senator Reed, Repub-
Iican, Pennsylvania, called the payment
"breach of faith, dishonorable thing
and a plain default on plain promise"
Senator Black, Democrat, Alabama,
told Reed, 1--WE got part Of the debt, but
under the (Hoover) moratorium we got
none"
Senator johnson, Republican progress
Sive from California, who supported Mr.
Roosevelt for the presidency came to
his defense and assailed Ramsay Mac
Donald's injection of the debt question
into the London conference as bad
manners" and bad craftsmanship.
Great Britain could have paid and
should have paid" johnson said. L
have no criticism of the President for
receiving the sum paid on account. 1
have no criticism If the statement was
plainly made that it was matter
within the jurisdiction of Congress
alone and Congress had the right to
determine whether there should be can
cellation or reduction"
Another congressional veteran, Sen
htor Glass, Democrat, Virginia, entered
the debate before it closed with dec
laration he concurred with johnson,
but would postpone his discussion until
q more appropriate time"