BRITAIN'S WAR DEBT
TO AMERICA
Decision To Defer Payment
Washington, June 5.
The British note on "wür debts | declares that the British, Govern- ment is faced with two alterna- tives, namely to pay the full sum of U.S.$262,000,000 or to suspend all interest payments pending a Anal revision, which is delayed by events beyond the control of "the two Governments.
The Government deeply regret the circumstances forcing them to take such a decision, but they feel unable to assume the responsibility for adopting a course which will revise the whole system of inter Governmental debt payments.
As already pointed out, resump- tion of full payments will neces- sitate а corresponding demand from Britaift's own war debis, and will be the re-creation of 'condi- tions existing before the world crisis, and which, in a large mea- sure, are therefore responsible. . Such a procedure would throw a bombshell into the European arena having financial and econ- omic repercussions in all five Con- tinents and would postpone, inde- finitely, the chances of world re- covery.
Prepared To Discuss." Declaring the decision to defer payment until it is possible to dis- cuss the ultimate settlement of Inter-Government war debts with a reasonable prospect of agree- ment, the note states that the. British Government does not in- tend to repudiate her obligations, and is prepared to enter discus- sion whenever President Roosevelt feels that a valuable result will
ensue:
#
In the interest of world recovery. Britain has suspended all demands from debtors for many large loans. and in paying the United States nearly half of her original loan. she has already paid" all she re- ceived from other nations as well ás considerable sums from her own resources.
Referring to the Budget surplus the note states that after 15 years of unparalleled taxation it would be a gross act of social injustice to have denied this relle! while suspending war debt payments.
Recapitulating the note of De- cember 1. 1932, emphasising what it terms as the "injustice of the difference between the British settlement and those accorded other debtors." the rete declares that nothing has occurred.. since to change the Government's views.
Currency Disorganisation.
11
Since payments must be made in dollars or in gold, an attempt to transfer such large sums would cause 2 sharp depreciation of sterling against the dollar, which the Government inconsistent with the monetary policy or the United States.
understands. is
FAVOURABLE
RECEPTION
ㄗˋ
Effect of Note
on Currency
London, June 5.
The British note on War Debts is well received by the city generally. It is hoped that it will bring matters to a head, streng- thening President Roosevelt's post- tion vis-a-vis the large congres- "stonal body which is still out for its pound of flesh.
The market is somewhat puzzled by the failure of sterilng to favour ably react to the news as the de- ciston not to make even, a token payment should have resulted in temporary alleviation of the pres- sure on Sterling.
However, the undercurrent, or Armness in dollars and francs as a result of the migration of British speculative capital to Wall Street combined with other factors and the withdrawal of French funds from London, is considered too strong to be influenced by non- payment,
British control after, holding off is now supporting sterling against francs-Reuter.
THE BRITISH NOTE
European Views
London, June 6. European views on the British note to the United States hitherto the British attitude.-- endorse
Reuter.
FRANCE WILL NOT PAY
Paris, June 5. War Debts are dead proclaims the Paris "Midi. which declares that Britain has rallied the French
Britain's
thests that death to reparations entalls death to debts.
ment makes it doubly certain that refusal to pay the June 15. instal-
France will not pay. Reuter.
ITALIAN REACTION
!
Rome, June 5. Surprise mingled with relief is decision as it was experted that a the Italian reaction to Britain's
larger token payment will be offer- ed., Business circles are relieved that Italy is not left any alter-
As regards the June 15 instal-natives of paying more or default- ment, the British Government is ing by herself. Like the French, quite prepared to make further Premier Mussolini always held the payments on June 15 in acknow- payment of reparations and war ledgment without prejudice, to debts to be inseparably connected. the right again to present the The Italian decision in regard to clause of readjustment on the as-payment of the instalment is like- sumption again that they will re-ty to be announced during the ceive the President's declaration week.-Reuter. that he does not consider thein in default.,
Britain understands, however, that as a result of recent legisla- tion na such declaration is possi- ble, therefore the procedure adopt- ed in 1933 is no longez practicable. The note recently handed to the British Ambassador, Sir Ronald Lindsay, by the American Depart- ment, declares that a total of U.S.$262,000,000 is due."
This total is made up as follows: June 15, 1933-966,000,000. December 15. 1933-$110,000,000. June 15, 1934-886.000.000.
-Reuter. DISAPPOINTED BUT NOT
SURPRISED
WAR DEBTS PAYMENT
A New Outlet
New York, June 5.
HONG KONG DAILY PRESS, WEDNESDAY, JUNE 6, 1934.
DISCOVERY BY ITALIAN
A New Chemical
Rome, June 5.
The discovery of a new chemical element, "No. 93," by a young Italian scientist, Professor Enrico Fermi, and four assistants,
185. described by Senator Mario Car bino, when speaking yesterday at the Royal Academy of Lincel in the presence of His Majesty the King of Italy.
!
AGREEMENT ON RUBBER
Views of Sir Cecil Clementi
Sir
London. June 4. Cecil "Clementi." Governor of Hong Kong, who is on furlough in London, in a speech at the an nual meeting of the Association of British Malaya, anticipated that
'-
THE DROUGHT SITUATION
Welcome Rains
London, June 5.. Apparently the doomed crops of some of the world's biggest grain growing and dairy farming areas are reprieved by rainfall report- ed from the United States, Canada and Russia.
FUNERAL OF JAPAN'S NAVAL HERO
Colourful But Simple Ceremony
Токус, June Б.
Amid scenes of "splendour, yet
Heavy showers are occurring in with simplicity, the State funerar SAAR QUESTION
the price of tin would be stabilis. Nebraska and light rains are fall- ed at about £200 per ton, and ex-ing in the Rockies, which have es-
the
late output quota pecially benefited the
-crup.
He said that "No. 93" was out-pected that
earth side the series existing on and was obtained by the bombard- ment of nucleus uranium, "No, 92" with neutrons.
would be steadily increased,
Regarding rubber, he feared that the present agreement might be come unilateral in the sense that He claimed that the new dis-it will be only plantations that covery went to prove that the for-will genuinely restrict the output. mations of new elements proceed-Hence, native rubber was the crux ed automatically in the universe, of the situation. with the result that the world was
artsally in the process of reju- venating itself.-Reuter
SILVER MARKET
(From Our Own Correspondent)
*London, June 5. London silver prices to-day were up 3/18ths for spot and for forward as follows:-
June S. 19.11/16 19.9/16 19.11/16 The London on New York cross- rate at 2.00 p.m. to-day VIS 5.04-1 compared with 5.0+++ at yesterday's closing.
Spot
Forward
June 4.
194
THE DERBY
Probables and Jockeys
London, June. 5.
The following are the latest pro- bable starters and Jockeys for the Derby to-morrow......... Allshah
Admiral Drake Badruddin
(Perryman) (Elliott)
Everybody concerned, he said. should co-operate to ensure that there is no unauthorised planting by natives, to whom a high price is a temptation.
If the native output can be successfully controlled, the scheme promises to be most successful." Sir Cecil said-Reuter
SOVIET DEMAND ON MANCHUKUO
sown
Russia's claim to a fair crop is now assured as owing to the ex- 'ceptionally good sowing, the crop would be a bumper one but for the drought-Reuter.
- SUFFICIENT GRAIN IN HAND
London, June 5. Owing to prolonged droughts and excessive temperatures in cer- tain wheat producing districts in America and mid-Europe the position in the areas concerned may be seriously affected, in- volving farmers in heavy losses, but a survey of world stocks, says a correspondent in the Times," shows that grain already in hand irrespective of coming harvests will be aufcient to meet the greater part of the demands of importing countries in the coming year British Wireless,
Harbin, June 5. The relations between the Soviet and Manchukuo are likely to take a turn for the worse as the re- ship, Tungtalshen, near the eastern sult of an alleged demand, by border. evacuate, under pain of Soviet "artillerymen, that the in- being driven out by military force. habitants of the Manchukuo town--Reuter.
ANXIETY TO SAVE THE
CONFERENCE
Outlook Hopeless Without Germany
(Fcx) [Special to the "Hong Kong Daily.
„Press”-- {Cozyright.)]
Geneva, June 4.
Earon Munchausen (Cliff Richards) (Childs) (Johnstone)
Bondsman.
Colombo
A lengthy report about Monday's private session of the presidential committee of the arins conference has been issued by the Secretariat. (Caldwell) Mr. Henderson declared that the
(Bezant)
Russian proposal to convert the arms conference into a peace con-
Easton Hornsey Rise
(Gordon Richards) .... (Taylor) Medieval Knight (Steve Donoghue) On. Top Patriot King Pride of the Chilterns...(Herbert) Primero Rathmore
Tiberius Umidwar Valerius Windsor Ind Fleet Foot
Mr. Henderson declared that, it ought not be impossible to bring these four sets of proposals into harmony, provided Germany's co- operation is obtained. M. Barthou. the French Foreign Minister, re- marked that the view of his de-
legation was that the safety pro- blem would engage the labours of the conference, and now that ne- gotiations could, not be restricted, the exchange of opinions would be between groups and individual States. He. Barthou, did not be- lieve it would serve any useful purpose for the commission's pre- sident; Mr. Henderson, to try in- dependently to bring the views of France and Germany nearer to
of Japan's naval hero, Fleet Ad- miral Marqula Togo took place this' morning.
the Imense throngs Jammed streets through which' the" cortege passed. British and Chinese parties were among the foreign naval contingents, while
the mourners Included Princes, Prin- cesses, and highest milltary, naval and civil officials of the Japanese Empire.-Reuter.
PLANS OF ADMIRALS CHANGED
Shanghai, June 2. Alterations have been made in the plans of foreign warships as regards attendance at the funeral of Fleet Admiral Marquis Togo at Tokyo, and. It is beileved that Ad- miral F. Upham, commander-in- chief of the US. Asiatic. Feet, may also be present, in addition to Admiral Sir Frederic Drayer, R.N.. and Rear-Admiral Richard. com- mander-in-chief af the French Naval Forces in the Far" East.
The U.S.S. Augusta, flagahip, is due at Woosung at 11 am. to-day; from Tsingtao. The US.S. Isabel, yacht. bringing Admiral Upham from up-river, is also due at Woo- sung this morning, and it is be- Loved that he will transfer, to his flagship, which w proceed to Tokyo.
M
due in
First arrangements for Admiral Richard's voyage to Tokyo called for the use of the colonial cruiser Savorgnan de Brazza Shanghai from Hankow to-day, but it has now been decided that he will sall direct in his flagship, the Primauguet, which is at present on a visit to Hong Kong.
Admiral Sir Frederic Dreyer will sali in his flagship, H.M.S. Suffolk. as already announced.
PROPOSAL FOR INTER-" CHANGE OF PRODUCTS
ACCORD
M Barthou Pleased
Special to the "Hong Kong Dally.
·Presa" (Copyright).3 **
Geneva, June 4.
The long refractory menacing the Saar problem was finally dis- Dosed of on Monday afternoon
when the League of Nations Coun-- cil accepted the Saar Committee's report on the arrangements for the plebiscite and received the com- ments by Earthou, Capt. "Anthony Eden, Beck and "Benesch on the programme agreed to by France and Germany,
Barthou emphasised that France agreed without hesitation, with Axing, the date of the plebiscite for the Arst Sunday following the expiration of the specified fifteen. years' commission rule in the Saar because it is held to be important that the Treaty of Versailles be followed to the letter...
Germany's guarantee of freedom of voting and the provision for the protection from subsequent pėrže- curion for those voting against re- incorporation with the Reich, was declared by the French foreign. minister to be satisfactory, but, he added, he would have been better pleased had it been possible for Germany to furnish tangible guar-' antees that these safeguards 'pro- vided would be thoroughly effec- tive
Barthou reiterated that 24 & warm advocate for all possible safeguards, he took care to point- out that the present agreement reserves to the League Council the right to extend complete protection to all qualified Saar voters.
In closing, Barthou spoke feel- ingly of the practical and concilia- tory spirit shown by the German and French negotiators that en- abled the present accord on the Berlin, June 4.
Saar question to be reached at all. Although the embargo on imports
and expressed the hope that' pu- of raw cotton expired on May 31, bilc order will be preserved from in consequence, of the foreign cur now till the day of the plebiscite rency allotment being only 10 per on January 13, 1935, so that the
and cent. for June
the strict governing commission will not find Government control of imports, it necessary to strengthen the Bsär little difference in 'cöttör imports, police by calling in foreign forces. is expected, as Imports of raw materials are governed solely by the amount of foreign currencies available for payment.
Stocks of cotton and many other raw materials in Germany estimated to last for about four
(Ray) ference necessitated a unanimous (Beary) | vote. He continued that the gene- (Nicoll) ral agreement prevailed that no (Harry Wragg) truitful results could be reached .... (Jones) without the co-operation of Ger- (Smirke) many, When the four notes set- (Wells) ting forth the proposals for dis- Reuter. armament were considered to- gether it was evident that hin- drances to the agreement ought|gether, riot be insurmountable. These Finally, Mr. Henderson adjourn-months.
IRISH SWEEP
Hongkong Draws Again
London, June 5. The following have drawn prizes of £100 each:-
Standvac Syndicate, Canton C.ML. Fushan Road. Tsingtao" Hope, care CS.C.C., Hongkong -Reuter.
INJURY TO WYATT
Play in Test Uncertain
A fresh effort to achieve the li-
London, June 5. RE. S. Wyatt, who has been quidation" of war debts under new
selected to lead England in "the conditions is now possible accord- ing to the Washington correspond-
First Test, was injured in the right thumb when batting yesterday, ent of the "New York Times"" which adds notwithstanding the adverse
and did no play to-day An X-ray
comments in certain quarters that
examination has revealed a slight Washington, June 6,1
fracture across the bone on top Congress is generally inclined to Officials are stated to be disap-condone Britain's attitude which is
of the thumb. pointed but not surprised at Bri- widely regarded" as
Wyatt thinks he will be able tain's debt note, and expect other air. Officials privately estimate
clearing the to play in the test. The selectors nations to follow sult.
that the Johnson Act to rebut definitely deciding this point.
are waiting until Thursday before sponsors of taken payments will cost the United States $40,000,000 by the end of the year.--Reuter,...
They foresee a showdown of the whole question with President Roosevelt breaking the deadlock by inviting Britain to enter inta discussion for a settlement she considers possible to fulfil.—Reu- ; ter.
London: June 5.
of, the Exchequer, will make a statement on the 'matier in reply. The British Government note to to a question in the House of the United States on the subject | Commons this afternoon,
Reuter.
ESCAPE FROM PRISON.
four notes were: France, January 1; Italy, January 4: Great Bri- tain, January 29; Gertaany, Aprli
16.
28
NO SOLUTION OF
DEADLOCK
Opposing Views
London, June 5. The Bureau of the Disarmament
-are
ed the deliberations until Tuesday.
The Government expects, in the without
any concrete decision meantime, to reach an understand- having been reached. Transocean ing with other countries for the exchange of German Industrial products for foreign raw materials.
-Reuter.
Kao Mini
MR. HENDERSON READY
To Travel To Berlin
"Press" (Copyright)}
Conference after a' long debate in ❘ [Special to the “Hong Kong Dalls private session yesterday adjourn- ed until to-day. It is understood no solution of the present dead- lock emerges from the debate.
Geneva, June 4
The bureau of Arms Conference held a private session on Monday to discuss what official attitude the plenary session will take on Wednesday, Towards five o'clock; while the private session was still going on, it was announced from the presidium conference that Mr.. Arthur Henderson has been com- missioned to take all further steps possible in an endeavour to save
The ""Times" Geneva correspon dent says that two opposing views were revealed, one of which con- sidered that an agreement on Disarmament as the first business of Conference was obtainable only with the collaboration of Germany, who should therefore be induced to return to Geners which," in view of the opposing section on secur- the conference, Above all, it is ity, appeared to be regarded as the essential that Germany should be immediate. objective,
persuaded to return to the con- In reviewing the situation, Mr.ference otherwise, it is agreed. Arthur Henderson said that notes the outlook is hapless. from France, the United Kingdom
and Germany revealed various Mr. Henderson declared that, if methods to reconcile the differ necessary, he would be ready to ences and the Bureau therefore travel to Berlin to try to accomp-
Commission some method whereby should recommend to the General |lish it-Transocean Kuo Min.
the differences might be further minimised so as to secure Ger-
many's participation in efforts to Captain Anthony Eden agreed "bulld up a convention.
// Without excluding parallel dis- New York, June 5. cussions on security for which pro- One convict was killed and one vision already exists, he thought convict and one guard fijured it should be carried on outside the during the escape of 12 prisoners Conference and not made its prin- The correspondence between the from the Parchman Penitentiary cipal business. M. Barthou de Washington yesterday and Mr. two Governments will be publish- Missouri, after a desperate fight pecated any new overtures to Neville Chamberlain, Chancellored this evening-British Wireless, I to seize the guards rides-Reuter. Berlin.
of War Debts was presented in
|
with the view expressed by Mr. Henderson and urged that the main political questions before the Conference must first be tackled. The main object of the Conference was still to find a compromise he tween the different points of view The discussion resumes to-day British Wireless.
The Lord of the Privy Seal, Capt. Anthony Eden, pald a tribute to the constructive spirit shown by both France and Germanyin achieving unity in the Baar ques-, tion which was, at one time, con- sidered the greatest threat to peace in Europe, and he expressed the hope that the understanding reached might pave the way to successfully surmounting other
refractory problems. equally Transocean Kuo Min.
(Other Cables on Page 12y
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