WAR DEBTS.

Hokitika Guardian, 5 August 1922, Page 3

WAR DEBTS.

FRANCE OFFERS COMPROMISE

AUSTRALIAN AND N.Z. CABLE ASSOCIATION

PARIS, August 3.

“Le Petit FaHsicn” says: Tie French programme at the London conference is divided into two sections; firstly, a definite settlement of the German debt, linked with an eventual settlement of the Inter-Allied debts; secondly, steps to control German finance. France will announce her readiness to asw Germany for reparations for material damages only, France is prepared to forfeit twelve billion francs in gold which the Allies owe her, on condition that Engnud and America to do not claim the money lent to France during £he war. The French plan for the control of German finance consists of monetary reform, control of customs, and a levy on German capital. The Allied Reparations Commission decided to postpone consideration of the question whether Germany defaulted in the payment due until after the London conference.

BRITISH POLITICIANS. LONDON, August 3. I:] the House of Commons, in moling the third reading of the Consolidated Fund Bill, Sir Robert Horne reviewed the German reparations payment. Tims far, he said, Germany has paid a total of £107,000,000, apart from the value of the ships and coal secured from her and payments in kind value! at £160,000,000. The Government property secured in the ceded territory- is valued at £123,000,000. The Saar mines, in French occupation, arc valued at £23,000,000. A total of £415,000.000 has been paid. Britain has obtained £56.000,000. Practically' the whole of that has been spent upon thp armies of occupation. He said that, personally, he Ltd coino to the c'.nchision that Germany could pay very considerable sums ill the shape of reparations, but she required some respite in order to put herself in a position to pay.

I Britain, he said, recognised her obii- ! gation.s to pay her debt to the United States to tliq full amount. I The Geiman capital invested abroad | was nothing like what some people 1 supposed It did not amount to more ' than £1641,000,000. I It wai essential to adjust the reparations to really payable dimensions, both a.-, regards time and the method of' payment. The European problem could oiJy he settled in conjunction with the Allies. Sir R. Horne pointed out that Britain’s war debt totalled £7,766,0‘0,000. France’s totalled £6,340.000,000, and America’s is £5,147,000 000. The equivalent per’ capital amounts were £lßl, £162 and £47 respective. while the taxations per capital worked out at: Britain. 17 guineas France CO' America £B. In those circumstances, it was impossible to ask the British taxpayers alone to carry the war debt burden. While recognising Britain’s obligations to America, he regretted the United States attitude made it impossible for those who fought side b.v side to regard their financial contributions as subscriptions to a -o-imon cause.

Mr Asquith said that unless something were done promptly. Germany was heading straight for bankruptcy. He agreed with Sir R. Horne that it was necessary to reduce the reparations te really payable dimensions, and lie was glad M. Poincaire was coming to disr-.-ss the question personally. He (Asquih .1 thought they could write the reparations off ns not being good debts. To rem z them was not an act of magnanimity, but an act of good business.

I A BOITRITE’S VIEW. LONDON. August 3

R.t Hon. A. Henderson (Labour), speaking at Heywood, said that the failure of the Versailles Treaty had been amply evidenced by the scope and intensify of the terrible effects of the econooi e clauses, experiened alike lathe >’auquished and the victorious. An immedM’p revision of the Treaty was essential, on the grounds of honour and of expediency. The Allies should not go beyond the armistice terms, and were .lot entitled to demand more than they .mid actually get. Labour, he said, '.’l homed Lord Balfour’s note. The R.-itisl policy was doing the right thing, which should not, however, he conditional on America doing likewise.

AMERICAN VIEW. (Received this day at 8 a.m.) WASHINGTON, Aug 3

Senator Borah states the people of United States will never he greatly interested in any proposition for the cancellation of Allied debt to United States, unless accompanied by certain guarantees of practical disarmament on land and sea.