[Enclosure]
Statement by the British Chancellor of
the Exchequer (Snowden) in the House of Commons
“As my Right Honourable Friend the Prime Minister informed
the House on June 22nd ‘His Majesty’s Government in the
United Kingdom subscribe wholeheartedly to the principle of
President Hoover’s proposal and are prepared to cooperate in
the elaboration of the details with a view to giving it
practical effect without delay.’ With the permission of the
House I should like to take this opportunity to explain the
steps which we have decided to take for this purpose.
“The more consideration we give to the President’s
declaration the more it seems to us that that declaration
constitutes a very great gesture on the part of the United
States and it will be a thousand pities if Europe does not
respond to it in the same spirit. The beneficial effect of
the proposal may be lost unless steps are taken by all
countries concerned to give it prompt and practical
effect.
“This is particularly the case as regards Germany which after
all is the essential difficulty. We agree with the view
expressed by the United States Government that there is not
time for a conference. A more prompt method must be found
for putting into operation the proposal of the United States
Government for a complete and immediate suspension of German
payments to creditor governments.
“Procedure which we would favour is that credit[or]
governments should forthwith notify Bank for International
Settlements that they agree to proposal for suspension for
one year of all German payments due to them. Decision of
course does not rest with us alone and we are awaiting the
views of the other creditor governments; but we hope that it
may be possible to secure agreement on these lines as soon
as possible.
“President Hoover’s proposal applies however to ‘all
intergovernmental debts, reparations and relief debts.’ His
Majesty’s Government for their part accept this proposal in
spirit as well as letter. They will accordingly be ready to
suspend for one year all such intergovernmental debts due to
them as soon as President Hoover’s proposal has been
generally accepted and in the meantime as from July 1st they
will refrain from claiming instalments that may fall due. As
regards relief debts His Majesty’s Government are at once
taking steps to inform other European Governments which hold
relief bonds of their action and to invite them to
cooperate. Finally although His Majesty’s Government in the
United Kingdom do not regard President Hoover’s proposal as
directly affecting war obligations of the Dominions and of
India to the United Kingdom which are a [Page 206] matter for discussion and
settlement between those of His Majesty’s Governments
concerned we felt we should be interpreting the wishes of
the country in deciding freely to offer the Dominions and
India the same concession as if proposed for foreign
countries under the same conditions.
“Accordingly when inviting assent of the Dominion Governments
and the Government of India for suspension of German
payments so far as regards the share to which they are
entitled we intimated that on the same principle we would
readily give them the option of postponing the whole amount
of their war debt payments to United Kingdom for a period of
twelve months from July 1st, 1931, if they so desire.
“These proposals will involve loss to current budget which
may reach approximately eleven million pounds. This is a
serious sacrifice for taxpayers of this country upon whom
such heavy calls have already been made but we hope that the
step which we are taking in cooperation with the United
States will be more than justified by the help it will give
to reviving confidence and prosperity.”
