The Washington times., 1934-06-13
j. s. LIMITS
PAYING DEBT
I'm KIND"
President Says America Is
Willing to Accept Part
''In Goods, Services"
BY KINGSBURY SMITH
International News Service

President Roosevelt let it be
known today that the United
States will be willing to accept
only part payment of the 10000
million dollars, owed American
taxpayers by Europe, in goods or
services rather than cash.
The President, at his weekly
press conference, said Secretary
Of State Hull'S note to Great
Britain, expressing the willingness
of this Government to consider
payments in kind, was not in
tended to convey the impression
that the United States would &C.
cept payment Of the entire debt
in goods or services.
It would be impossible, the
President added, to accept the to-
tai amount due each year from
the debtor nations, running into
approximately 300 millions, in
goods or services.
Open to Suggestions
The President said this Govern
ment had expressed it's willingness
to discuss with the debtors the
question of payments in kind in
order to avoid the obstacle raised
by the debtors that it was impos-
sible for them to pay in cash.
This Government, Mr.. RooSe-
velt said, was willing to listen to
any suggestions the debtors might
have to offer concerning partial
payments in kind-but only par
tial payments. -..
Secretary OF State Hull's note
marked the first time this coun-
try has offered to accept payment
of the debts in kind" and repre-
sented a challenge to the oft-re-
peated assertions Of the debtor ma
tions that they would gladly meet
their obligations if they could, but
it was impossible for them to pay
in cash.
Challenge To Debtors
Mr.. Hull, in effect, challenged
the debtors to back up their good
will assertions by offering pay
mert in goods or services or come
out in the open and admit they
merely were seeking to escape
their obligations.
In one of the most caustically
worded notes ever sent a debtor
nation, Mr.. Hull rebuked Great
Britain for it's action in announc-
ing suspension of further pay
mentS on its debts to this country
until there is a new settlement on
a drastically reduced basis.
He served notice on the debtor
nations in general that the United
states does not intend to be
forced into granting any drastic
reduction Of the debts by united
default and declared this govern
ment read with disappointment"
what appeared to represent "in-
sistence by His Majesty's govern
ment" of a new settlement mot
necessarily in accordance with
any accepted standards of pay
ment or readjustment of the
amounts due"
Finland Expected
While reiterating Presid en- t
RooSevelt's declaration that the
American people would not be
disposed to place an impossible
burden upon their debtors, Mr..
Hull said, in effect, that if they
could not pay in cash they should
offer to make some payment in
"'kind" rather than seek to force
drastic reduction by outright de-
fault.
The decision to consider pay
ment in goods or services came
at a time when this country faced
complete suspension Of payments
from all the debtor nations, with
the exception of Finland.
Mr.. Hull did not mention that
goods or services this country
might be willing to receive in
payment. But it was believed
that, in the case of Britain, the
United States might consider &C
ceptance of rubber and tin.
Other articles produced by
some of the debtor nations and
of which this country purchases
a large quantity include: Ger
many, dyes and chemicals;
France, wines and perfumes;
Italy, olive oils.
Mr.. Hull also flatly rejected the
British suggestion, made indi-
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