Great Britain's attitude in regard to the War Debt instalment simple. Suspension of its payment was suggested on the basis of considerations which seemed to British statesmen to be sound. The suggestion did not commend itself to the creditor—the United States of America. Congyess wanted cash and cash only. Refusal to pay would have been equivalent to default. Default would have been for a sum, inability to pay which could not be truthfully maintained. As re. quests for suspension of the whole payment had been made land refused, it was incompatible with dignity to ask for waiver of the period of notice for the pay: ment of the principal. Yest day, therefore payment in full was made in gold in New York. The process has been effected by adjustment in capital account; it cannot be repeated. If further payments eventually to be new funding agree-will have to come out. The House of Com-distinction of National decision.
The speeches made have een in strict consonance with the desi to. maintain British relations with the United States of America on the plane of friendliness to which, fundamentally, the two nations attach the greatest importance. The conviction that rejection of the British suggestion was a mistake has not been allowed to override perception of the difficulties of the United States Government or of. the sincerity of Congress's view of its responsibility to the American taxpayer. Nothing could be mot disastrous than to permit this sharp difference of opinion on a major issue to cloud the splendid understanding which is so great an asset to the two count permissible to think—to the world at large. The strength of that understanding is indeed shown when disagreement can be frankly expressed without offence to either side.
_While recognising the obliga tions imposed by the decision of the United States Government, Great Britain is also greatly con cerned with the preservation of the entente with France. It is to be hoped that the embarrassment now confronting the French nation in the conflict between its parliamentary representatives and its executive, will not give rise to hasty criticism. Great Britain, indeed, may be the instrument of interpretation France to America. In the need for saving the Lausanne Agr ment British and French star manship must be united. true that, even now, that Agreement seems to depend on an ultimate American acquiescence in some form of debt remission. And the fiat of Congress as on record is not favourable. Still President Hoover, although carefully keeping the ground clear for his successor by avoiding definite declarations, has intima
Text read from the printed page and cleaned; old type leaves the occasional error.