Franklin D. Roosevelt

Statement on British War Debt.

June 14, 1933

The British Government has today announced a payment to the United States of ten million dollars with a note indicating that this payment is to be considered "as an acknowledgment of the debt pending a final settlement." It has in its accompanying note pointed out circumstances that have induced it to take this action.

Such payment does not, of course, in any sense prejudice the freedom of either Government in any subsequent discussion of the entire debt question which will take account of this and other debt payments. I announced in November, 1932, a policy to the effect that a debtor may at any time approach a creditor with representations concerning the debt and to ask for readjustment of the debt or its terms of payment. Under such circumstances the debtor Government makes such representations as it deems of importance with respect to the desirability of any readjustment in the terms already agreed upon. The British Government availed itself of this principle following the payment of the December fifteenth payment and I had informal discussions concerning the debt with the British Ambassador even before my inauguration. On the occasion of the visit of the Prime Minister of Great Britain in April further exploration of the subject was made by us and additional discussions were held by the experts of the two Governments. Time and circumstances would not permit any definitive conclusions in these discussions because at the moment both Governments were vitally concerned in making preparation for the World Monetary and Economic Conference in London. It seems the part of fairness and wisdom to postpone formal representations on the debt subject until later. Meanwhile, the World Economic Conference is beginning under favorable auspices and it is vitally necessary that during the opening days of the Conference difficult and possibly protracted discussion of the debt be avoided.

In a spirit of cooperation I have as Executive noted the representations of the British Government with respect to the payment of the June fifteenth installment, inasmuch as the payment made is accompanied by a clear acknowledgment of the debt itself. In view of those representations and of the payment I have no personal hesitation in saying that I do not characterize the resultant situation as a default.

Beyond this the law and the Constitution do not permit me to go. The American public understands clearly that the settlement under which these debts are now being paid was made under the authority of Congress and that Congress alone has the right to alter the amount and method of payment of this debt. Further than this, the Congress in December, 1931, in approving the moratorium in June of that year, specifically set forth that the debt should not be canceled or reduced.

Under my constitutional power, and in accordance with the terms of the policy which I have set forth, I can entertain representations of the British Government concerning the entire debt settlement and the British Government has requested that such opportunity be afforded. I have, therefore, suggested to them that such representations be made in Washington as soon as convenient. As a matter of information to the American public, I want to make it clear that the Economic Conference now being held in London does not include in its program any consideration of the debts owed by various Governments to the United States. The American delegates have been instructed not to discuss debts with the representatives of any of the debtor Governments. This is in accordance with the further principle that I have felt important, that the debts be considered on their merits and separate from other international economic questions.

I have further informed the British Government that such representations and suggestions as may be made to me by the British representatives when they discussed the problem in Washington will be submitted to the Congress for information and consideration when the Congress next meets.

Franklin D. Roosevelt, Statement on British War Debt. Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/208227

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