Evening star., 1934-06-01
Text of War Debt Message
President Insists Obligations Be Recognized by
Nations as Prelude to Discussion OF
Revision of Sums Due.
@HE text of the Presidents war
debt message follows:
To the Congress of the United

Il States:
In my address to the Con-
gress January 3. stated that / ex-
pected to report later in regard to
debts owed the Government and peo-
pie of this country by the governments
and people of other countries. There
has been no formal communication on
the subject from the Executive since
President Hoover's message on Decem-
Der 10, 1881.
The developments are we'll known,
having been announced to the press
as they occurred. Correspondence
with debtor governments has been
made public promptly and is available
in the annual report of the Secretary
of the Treasury. 1t is, however, time
ly to review the situation.
Payments on the Indebtedness OF
foreign governments to the United
States which fell due in the fiscal
year ended June 80, 1882, were post
poned on the proposal of President
Hoover announced June 20, 1881. and
authorized by the joint resolution OF
Congress approved December %, 1881
Yugoslavia alone suspended payment
while rejecting President Hoover's
offer of postponement.
Ten Ask POstponement.
In the six months of July to Decem-
Der, 1882. which followed the end of
the Hoover moratorium year, payments
of $l25, 100000 from II governments
fell due Requests to postpone the
payments due December Is, 1882, we're
received from Great Britain, France.
Belgium, Czechoslovakia, Estonla,
tatvia. Lithuania and Poland. The
replies made on behalf of President
Hoover through the Department of
State declined these requests. gener-
ally stating that it was not in the
power of the Executive to grant them,
and expressing a willingness to CO.
operate with the debtor government in
surveying the entire situation. After
such correspondence, CZechoslovakia
Finland, Great Britain. Italy Latvla
and Lithuania met their contractual
obligations while Belgium. Estonia.
France and Poland made no payment.
In a note of December IL. 1882.
after the United States had declined
to sanction poStponement of the pay
government, in announcing its de-
cision to make payment of the amount
due on December Is. made the fol-
lowing important statement:
For reasons which have al
ready been placed on record his
majesty's government are con-
Vinced that the system of inter-
governmental payments in respect
OF the war debts as it existed prior
to Mr. Hoover's initiative on June
90, 1881, cannot be revived with
out disaster. Since it is agreed
that the whole subject should be
re-eXamined between the United
States and the United Kingdom,
this fundamental point need not be
further stressed here.
Payment Merely a Token.
"In the view of his majesty's
government, therefore. the payment
to be made on December Is is not
to be regarded as a resumption of
the annual payments contemplated
by the existing agreement 1t is
made because there has not been
time for discussion with regard to
that agreement to take place and
because the United States Govern
ment have stated that in their
opinion such a payment would
greatly increase the prospects of
a satisfactory approach to the
whole question.
His majesty's government pro-
pose accordingly to treat the pay
ment on December IS as a capital
payment of which account should
be taken in any final settlement
and they are making arrangements
to effect this payment in gold as
being in the circumstances the
least prejudicial of the methods
open to them.
This procedure must obviously
be exceptional and abnormal and
his majestys government desire to
urge upon the United States Gov
ernment the Importance of an
early exchange of views with the
object of concluding the proposed
discussion before June Is next in
order to obviate general break
down of the existing mtergovern-
mental agreements"
Power to Assent Lacking.
The Secretary of State. Mr.. Stimson,
replied to this note on the same day
that acceptance by the Secretary OF
the Treasury of funds rendered in
payment of the December Is INSTALL
ment cannot constitute approval of or
agreement to any condition or dec
laration of policy inconsistent with the
terms of the agreement, inaSmuch as
the Executive has no power to amend
or to alter those terms either directly
or by implied commitment.
No payment was made by France
December IS. 1882. as the French
Chamber of Deputies by vote on the
morning of December IA refused au-
thorization to make the payment. The
resolution voted by the French Cham
Der at that time invited the French
government to convoke as soon as pos
Slble, in agreement, with Great Britain
and other debtors. general confer
ence for the purpose of adjusting all
international obligations and putting
an end to all international transfers
for which there is no compensating
tranSa action. The resolution stated
that the Chamber despite legal and
economic considerations, would have
authorized settlement had the United
States been willing to agree in ad-
vance to the convening of the con-
ference for these purposes.
Quotes Hoover Statement.
This resolution of the French Cham
Der is to be read in relation with the
public statements of policy made by
President Hoover and by myself on
November %, 1882 President Hoover
said, The United States Government
from the beginning has taken the posi-
ton that it would deal with each ot
the debtor governments separately, as
separate and distinct circumstances
surrounded each case. Both in the
making Of the loans and in the SUBJ
sequent settlements with the different
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