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Show agreement of the foreien governments' contaimMl in their demand oMfgatlms held by (ho United States to give hmc:-tim hmc:-tim obligations, if- rtijuestttl, in ev-chanse ev-chanse therefor" BRITISH PLANS OF PAYMEIIT REJECTED I Senate Hears Two Phases of; Loan Status; Houston j Explains Position j i 'WASHINGTON. Feb, 5 Two phases j f the allied loan status discussion, came up today in the senat A letter let-ter from Secretary Houston. re;d by J Senator iKijce, declared that the treas- i wry department "would not for obvious reasons" proceed further with nepotta- j ttons for exchanging allied demand oh-titrations oh-titrations held by the treasury for Ions- I time ohligatttsns. in order to leave hi! wuccessor free to act. Thin was fol-; lowed by insertion in the record of press accounts of remark' by .1. Ans- j ten Chamberlain, chancellor of the British exchequer, staling that formal) proposal hail been made for c;inceMa-j tion of allied indebtedness and nc Jet ted by the I'nited States. j Senator Knox fltep.t, l'ennsylv.'.nla. i took occasion to deny t hat he bad ever offered a resolution proponing to I.. twmU hs 4SbUt mm hmm kmm pefcMi. The statement was a "perfect uhsurd- ity." ho declared. Secretary Houston, in his letter, said Liberty bond acts "contemplated" e- rhanpe of the foreign tddiKati -tih T-f , lonKtime promises to pav arid that lie- Itotiations had proceeded its told in hi ' last annual report. In Auiiii-t, 1 !-', he naid. iin arranpement was mad' j with the lEritish ' in respect of $ I i'l'.- ftlT.S.t of ns obligations held by th-' I'nited State under which $1 7.; 3 3 of j principal together with accrued inter- i est n a e been pa id . ' j 'The accrued interest on the re- ! tuamder tweome due during April and ' May. 1 91' 1." Mr. I oust on added' "Thereafter interest is pa vnlde semi - ' annually and the principal ' bc omes due in etjTial annual ins.alments ilurm April and lay of the aiM 1ti'l -TJ-'J'S nnd r4. j The negotiation!! a foremen t ioned were conducted oimont entirely orally. There has not been any official proposals pro-posals on the mbject that would in any way bind this Rovernment or the foreim governments ot h'-r tha ti the |