Evening star., 1933-06-13
BRITAIN MAY PAY
j. S. 10 PER CENT
Smaller Sum Expected to Be
Accepted to Prevent June
Default.
Continued From First Page. }


made before 10 pm. a pm. Eastern
standard time) The chancellor Of the
exchequer will explain when he starts
to speak, and I think the Commons
will probably understand"
Issue Brought in Open.
Already the controversial issue, which
was specifically banned from the con-
ference program-although it was the
inevitable ghost behind every chair
has reared its head in the open.
In his welcoming address yesterday
to the 1000 delegates and experts,
Prime Minister Macdonald showed
what was in the British mind in as
serting that Lausanne has to be com
pleted."
He referred to a conference agree
which the German reparations were
cut 80 per cent, with the British and
French agreeing that similar cuts in
the United States war debt be sought.
France failed to meet her December
payment and 1t is deemed certain here
that she will not meet the June Is
installment of $4,000 900.
Great Britain thus far has met all
the payments when due, but owes
$75, $50, coo interest, payable Thursday,
and in December served notice she
would make no more payments under
the present funding agreement.
Revision talks have been progressing
several weeks between Washington and
London, but apparently no agreement
has been reached.
Partial Payment Rejected.
Two developments stood out clearly
In the opening day of the conference: !:
The prime minister's pronouncement
in favor Of immediate solution of the
debts question, which was followed in
few hours by the emergency cabi-
net session, and the revelation by a
high French Official that Great Brit
ain had tentatively offered to pay the
United States 10 per cent Of the in
terest due.
This offer, the French official said,
was rejected by Washington.
American delegates, for the most part,
objected to the reference by MacDon-
aid to the debts matter, some describ-
ing it as bad taste" and others using
stronger terms for it.
Cabinet members, including the pre-
mier. were hastily called from a dinner
being given the delegates to consider
the latest communication from the
American Government This, it was un-
derstood, concerned token payment"
on the debt.
Premier Daladier Of France, insist
Ing on the Importance of fixing the
relative values of the chief world cur
rencies. further disturbed the confer
ence with a warning that his govern
ment would agree TO nothing until the
dollar and the Dollnd had been sta hill
lied, at least in de facto way.
Demands Stable Money.
France cannot accept a tariff truce
until America and England decide to
stabilize" he said We must have a
yardstick to measure with. 1t is USE
less to go on here until the British and
the Americans take the first STEP
He added the conference Steering
Committee had decided to consider his
at the earliest opportunity.
The tariff truce, initiated by Presi-
dent Roosevelt, was to be in effect I'D
to the opening of the conference, but
Secretary of State Hull, leader of the
American delegation, indicated he
would ask its extension until reason
able time after the close of the parley.
Debate on this point was forecast
Central banking officials and f1nan-
cial experts of France, Great Britain
and the United States worked on plans,
meanwhile, for, currency stabilization,
although the Americans are under
stood to be opposed to any fixing Of the
dollar level which might react unfa-
vorably on the American internal pro-
gram for raising prices.
ITALY FIXES DEBT POLICY.