Evening star., 1934-06-13

Continued From First Page.)
the main objections to a cash pay
ment was that since the debtor ma
tionS obtained goods here, they should
repay the United States in goods.
Hull, in his note, accepted this con-
tention and declared the Government
of the United States sis willing to pro-
ceed along the lines required by the
debtor nations" thus opening for the
first time the way for real and final
settlement of the debt question.
What kind of raw materials the
debtor nations might be required to
part with is, for the time being, unde-
cided. This will form the subject of
eventual negotiations America i'm
manganese ore. chromium and other
raw materials, which American indus
try must purchase abroad.
Peace Aim Also Seen.
In Washington diplomatic circles,
where this new note made an excel
lent impression, it was said today that
besides the motive of finding a solu-
ton to the debt problem, the Amer
ican Government is undoubtedly
prompted by desire to make another
war difficult If rubber, zinc, manga
nese and other such raw materials
have to be delivered to this country,
the manufacture of ammunition will
become less easy, and consequently the
possibilities of another conflict some
what reduced.
Secretary Hull, with his usual courte-
GUS yet frank manner, indicated clearly
to Great Britain that if she wants to
meet her obligations she can do it.
He pointed out that the British gov
ernment must have misunderstood the
ruling of May of Attorney General
Cummings, regarding the defaulting
nations.
The British In their note of May Is
said that unless payments were made
in full in the sum of s262, 900 900 . s.
the United Kingdom would fall within
the effects of the recent legislation"
(the johnson act). This, however, is
not the case, Mr. Hull stated. THE
Attorney General has advised me that,
in his opinion, the debtor govern
ments which, under the ruling of his
office of May 5, 1884, are not at pres
ent considered in default because of
partial payments made on earlier in
stallments, would have to pay only the
amount of the installment due June
Is, 1934Efor Great Britain S85, ,670,-
765-in order to remain outside the
scope of the act.'
Arguments Are Assailed.
After having re-opened the door to
the British to make an effort to meet
their June obligations, Secretary Hull
proceeded to demolish the arguments
of the British government against the
continuation of such payments: In
regard to the record cited by the Brit
ish government of its loans to its al
lies and the fact that his majesty's
government has given up great sums
this Government must empha-
size the complete independence be-
tween the aforementioned transactions
and the debt contracted by his
majestys government to this govern
ment. The British government un-
dertook to borrow under its own name
on its own credit standing and re-
payment was not made contingent
upon the fate of the debts due to the
British government"
Neither did Secretary Hull allow the
British government to turn the tables
on the President, when they stated in
their note on May Is that they will be
ready to come and talk debts in WASH
ington only when the President finds
that the time is ripe for such CONVEX
sations to yield satisfactory results.
"In effect, this Government" the Sec
retary informed the British, reads the
declaration of his majesty's govern
ment to mean that 1t will fail to meet
any further payments > until this
Government shall first scale down this
debt to an unascertained sum to
which his majesty's 60 ernment might
be willing to accede. This declaration
appears to represent insistence by his
ajestys government that before 1t
makes any payment whatsoever 1t
must be assured of a settlement salts
factory to it and not necessarily In
accordance with any accepted stand
ards of payment or readjustment to
the amounts dua."