Evening star., 1934-06-05

tortum on tntergovernmenta payments
in 1881 in order to avert an immediate
collapse.
Moratorium Caused Change.
But the moratorium of 1881 caused
another change in the situation; 1t
made ai4y resumption of the pre-exist-
ing reparation and war debt settle
meuts impossible, and the revision of
reparations embodied in the Lausanne
agreement was made subject to con-
clusion Of subsequent agreement for
the revision of war debts.
6. It was with these facts in mind
tina. his majesty's government ap-
preached the United States Govern
ment in December, 1882, and the
United States Government in their
note of December II welcomed their
suggestion for close examination be-
tween the two countries Of the whole
subject.
After this exchange of notes his
maJesty's government paid the in
stalIment due on December Is, 1882,
in gold, explaining that this payment
was not to be regarded as a resump-
ton Of the annual payments contem-
plated by the existing agreement, and
that 1t was made because there had
not been time for discussion with
regard to that agreement to take
place, and because the United States
Government had stated that in their
opinion such payment would greatly
increase the prospects of a satisfac-
tory approach to the whole problem.
In accordance with the arrangement
then made, discussions took place first
in the Spring and later in the Autumn
Of last year between representatives
Of the two countries, and his majesty's
government appreciate the sympa-
thetic manner in which their repre-
sentatives were listened to.
But on both occasions it was found
impossible to arrive at a settlement
acceptable to the two governments in
face of the unprecedented state Of
world economic and financial condi-
tions.
Accordingly, the discussions were
adjourned and on June Is and De-
cember IS, 1888. his majesty's gov
eminent made token payments in &C
acknowledgement of the debt and the
President expressed the personal view
that he would not regard his maj
eSty's government as in default.
7. In their note of November 6
last. his majesty's government ex-
pressed their readiness to resume ne
gotiations on the general question
whenever, after consultation with the
President, it might appear that this
could uSefully be done, and his maj
esty's government are glad to note
that the President, in his message to
Congress on June l, has again stated
that each of the debtor governments
concerned has full and free oppor-
tunity 10 discuss this problem with
the Government of the United States.
Events Bar Discussions.
But unfortunately recent events
have shown that discussions on the
whole question, with view to final
settlement, cannot at present usefully
be renewed.
In these circumstances his ma jesty's
government would have been quite
prepared to make a further payment
on June Is in acknowledgment of the
debt and without prejudice to their
right again to present the cause OF its
readjustment, on the assumption that
they would again have received the
Presidents declaration that he would
not consider them in default.
They understand, however, that in
consequence of recent legislation no
such declaration would now be pos
sible, and If this be the case the pro-
cedure adopted by common agreement
in 1888 is no longer practicable.
8. His majestys government are in
fact faced with a choice between only
two alternatives, viz, to pay in full
the sum of 262 100000 dollars as set
forth in the communication from the
United States Treasury, dated May
25th, or to suspend all interim pay
ments pending a final revision Of the
settlement, which has been delayed
by events beyond the control of the
two governments.
Deeply as they regret the circum-
stances which have forced them to
take such a decision, his majesty S
government feel that they could not
assume the responsibility Of adopting
course which would revive the
whole system of governmental
war debt payments.
AS already pointed out the resump-
tion Of full payments to the United
|