WAR DEBTS.

Hokitika Guardian, 4 August 1922, Page 1

WAR DEBTS.

AUSTRALIAN AND N.Z. CABLE ASSOCIATION

PABIR, August 2.

The reply of the French Premier, M. Poincare, to the German note stating inability to pay tlto £2,000,000 Reparations stipulated per month, has hebn sent. It points out' that the £2,000,000 due now must he paid before August loth., and that an assurance that it will he paid must he given by August oth. If such an assura nee is not given, coercive measures will be taken. The reply has caused much anxiety in Berlin Though the coercive measures are not stated, Berlin fears the expulsion of 80.000 of German residents in Alsace, and that their property will be confiscated ,also tbe personal belongings of 1000 of tbe richest families will be confiscated. PARIS, Aug 2. Britain’s note in connection with the War Debt has met in France with a hostile reception. "Le Journal” oliservos:—“As Britain insists on our paying her. we will he able to repeat her gesture, and point our finger in the direction of Berlin 1” “Le Journal” adds:—“lt is a matter for wonder how Mr Lloyd George can ,in one breath, press us fo r payment, and yet declare that a moratorium is indispensable to Germany.”

BRITISH CAPITA!. VIEWS. LONDON, Aug 3. The Federation of British Industries commenting on 'Lord Balfour’s war debt note, points out that the British taxpayers are now carrying a burden equivalent to Is in tho £1 on the income tax, which is likely to rise to Is fid as soon as sinking fund payments of the Allied debtor countries from the liability which they cannot at present meet. The Federation declares that in view of Britain’s trade depression, now the severest in the country’s history, any proposals involving further sacrifices in Britain should he most closely scrutinised. Any involving the cancelling of any substantia! portion of debts owed will have disadvantages that outweigh any possible advantages. Neither the nation nor industry can afford to gamble on the chance of “bean geste” evoking corresponding pliilaii) rophy in other countries.. LONDON. Aug. 2.

Tbe “Daily Express” states: — “Lord Balfour’s war debt note contains proposals which are eminently light and likely to meet with the British taxpayer’s unqualified approval, but the form of the proposals is another matter. It is equivalent to appealing to American opinion to throw over the American Government’s declared views regarding war debts. If it had succeeded, it would have been an immense stroke Its failure must have become proportionately great. It is already clear that it lias lailed. LONDON, Aug. 2. The Paris “Le Temps” bitterly suggests the note sent out by Lord Balfour implies that Britain must he paid whatever happens. Britain, says the paper, is becoming the debt collector for America.

“J.e Temps” adds:—“Britain has not yet been devastated, and she stands to lose nothing. Germany has not been devastated, and she pays nothing, and she will enjoy the moratorium. France alone will hear the brunt of the loss of financial payments and material losses. The “Journal des Dehats” accuses Britain of stealing M. Poincare s thunder. Knowing that 51. Poincare lias had a scheme to offer, she has rushed in with a counter proposal. It would have liecn better for Britain to await the London conference before issuing the note. “La Liberto” declares:—“This note renders the approaching conference at London not only useless, hut dangerous. Britain.is bent on obtaining all the possible advantage for licisclf. Franco henceforth must fend for herself. She must display the firmest policy towards Germany.

f.LOYD GEOPOE ON GENOA. LONDON, Aug. 2. Mr Lloyd George. in the course of a preface which lie has written to a history of the Genoa Conference, says: “Like the dramas of old, Genoa showed a conflict between two great forces and two eluents of feeling, and states of mind—l might almost say two worlds, the old and the new, the form or consisting of that old world of national blindness, jealousy, fear, suspicion and prejudice. The Allies entered the war for a great common ideal, hut in the fierce suffering of the ordeal and the passionate triumph of victory. the old Adam reasserted himself —a shell-shocked. shaking nerve-rid-den Adam .almost as afraid of his friend* as his enemies. The new world and his, have a different faith and point of view. While believing that nationalism is the salt and genius in the making up of .western civilisation ns a whole, T believe that in the welter of passion, and economc chaos to which the world has been reduced, the welfare of every nation depends upon peace, co-operation, and the extension of a helping hand from the strong to the weak. The British Empire Delegation,! stood for that faith at Genoa, supported I believe by the goodwill and deep desire of the majority of all true democracies throughout the world. The campaign for peace is only beginning. We have won positions from which we must press forward. Wo bivouacked on the field- and must not rest until we have won. A FRENCH VIEW. LONDON, August 3. The “Daily Telegraph’s” Paris correspondent stresses the fact that though M. Poincaire leaves oil Sunday for London to meet Mr Lloyd George on Monday, he has hound himself, in a certnin eventuality, to net individually against Germany on the previous Saturday.

The correspondent goes on: —“One reason for France’s obduracy regarding Germany’s adherence to an arrangement for the payment of private debts is that the German Government in 1920 stipulated tlmt the German debtors’ payments he reckoned on the pre-war value of .the mark—the difference in tho actual sums paid in depreciated currency, when translated into foreign currency, being guaranteed by the German treasury. France regards this as unwarranted, dnd as resulting merely in an adverse affect on the Rqichs financial situation.

The Belgian attitude is directly opposed to that of Franco, which has caused grave disappointment in Paris.

Tho French press attitude to the whole question is summarised in “Le Matin's” reference to' M. Poincaire’s action as “stopping a swindle.”

The “Dnily Chronicle’s” Berlin correspondent understands that the Government will not answer M. Poincaire’s note, but will adopt a. passive attitude toward any French action. It is believed in Berlin that M. Poincairo intends to seize customs, railways, post and telegraph, taxation and revenue in the occupied area. Government circles are groatly astonished at M. Poincairc’s-intention to put in the bailiff ten days before the payment is due.

PRESS COMMENTS. LONDON, August 3. The “Daily Chronicle” says:—“We expect that some French commentators would draw tho moral from Lord Balfour’s note that, ns Britain was not prepared to remit to France more than three-fourths of France’s war debt to Britain, France must get the outstanding fourth from Germany. What France can do is to ruin Germany, keep Europe in turmoil, and accumulate materials for a future explosion. What France cannot do is to pay her debts by tho occupation of German territory. .Imprisonment for debt, which is Franco’s way ’with Germany, may or may not bo just retribution for the debtor's sins, but it is a way that never 'has lirought much money to a creditor’s aocounC. We believe France will rea. lise this truth, and act thereon.”

ANOTHER CABLE OF FRANCE. The “Daily Telegraph” says:—"Tho I result of the Note is seen in M. Poineaire’s ultimatum. The situation thus created is so delicate and difficult that, either a solution must speedily he reached, or the strain will become greater than can he regarded with i equanimity. America’s attitude to Britain does not affect the note, which de- j monstrates that Britain is ready to ' lend in a practical renunciation.” The I ’’Telegraph” points out-:—“Britain’s 1 obligations to America were, incurred j on behalf of the Allies, because Arne- j rica would not lend except upon British security. Britain does not complain at having to repay, but says it cannot he right for one partner in the common enterprise to recover all she lent while the other, while recovering nothing, has to repay all she borrowed. The Note is logically and equitably . complete and unanswerable. The "Morning Post” says: “America is opposed to Lord Balfour’s subtle proposals, which are a psychological blunder of the first magnitude, and the Note Ims committed tho British Government. It is notorious that the Government is divided regarding tho subject. Sir Robert Horne, the Trca. surv, the greatest expert in international affairs, and the City of London were against the publication of the Note, which was only issued after much hesitation. The document, which addressed only indirectly to America, has created an impression that Britain is about to default, and is trying to escape. not by honestly, brutally, and bluntly declaring her inability to pay, but by her underhand method of spacious communication with her unhappy debtors. The result is that the* cooperation of tho United States in tho restoration of Europe has been imlefinitelv postponed. Moreover, Lloyd . George cannot protest if tho Poilu in- ! stals himself in the Ruhr Valley. Eocli i ran polish his sworl with a clear eon- j science. > Tlie “Daily Herald” says:—“Amo- i rica cannot get money from Britain j without hitting her own industries. Al- ; ready she lias a vast amount of unemployment, and overstocked warehouses. Tt has taken years to bring to Britain that measure of sense indicated in the

Note. It wifi take America years to overtake it. Let us assume we are going to pay. America will pnv dearly for the payment.” The “Daily News” believes that: “Sooner or later, by her own impulse, never at our instigation, America will realise her opportunity for helping in a world, settlement in this matter of indehedness. We also believe that Britain will realise that if her debtors can he brought to forgive, in their turn, her forgiveness will he worth tho sacrifice, whatever other obligations may rest upon her.”

NOT AN ETHICAL QUESTION. The “Westminster Gazette” sayg: “The problem of tho Inter-Allied debts and their relation to the German indemnity is not a matter of ethical dialectics, but a practical business. Our most urgent necessity is to persuade France so to regard it. The American’s feelings about the sanctity of his claims against Britain cannot he compared with the Frenchman’s feelings abou he sanctity of his claims against Germany. France cannot force payments from Germany without causing a European catastrophy, damaging to herself and equally disastrous to Britain Similarly we cannot force our claims against her, or our other Allies. We liope the Government will think again devoting more attention to the urgent necessities of the European situation and less o the exeeelingly hypothetical effects of it's logic upon American opinion.”