The Hokitika Guradian FRIDAY, AUGUST llth, 1922. THE LONDON CONFERENCE.

Hokitika Guardian, 11 August 1922, Page 2

The Hokitika Guradian FRIDAY, AUGUST llth, 1922. THE LONDON CONFERENCE.

Thk important conference sitting in LiOndon to deal with the question of Allied debts is dealing with a subject of world-wide interest. Britain’s offer .—genet ous, but at the same time based on sound economic .and business principles—to remit all war debts due to Britain, from the Allies in respect to loans and from Germany in respect to reparations, has met with anything but an encouraging reception. Excluding the unpaid interest, the war debts now due to Britain total no less than £3,400,000.000. Of this huge sum, Germany owes 1.450,000,000, Russia £610,000,000 and the Allies £1,340,000,000. Britain, on the other hand, owas the United States some £860,000,000, together with interest since 1919. Rough, ly therefore the war debts due to Britain, are four times the amount of Britain’s indebtedness to America; and, even if America, were to forego entirely the debt due to her from Britain, the latter would lose some 2,500,000,000 by the debt cancellation deal, or practical lv three times the £860,000,000 that she owes the States. So much for the generosity of Britain’s offer. That she is thoroughly sincere in the matter is demonstrated by the fact that, as Lord Balfour pus it in Ins Note to the Allies, “pending a settlement which would go to the root of the problem (of war indebtedness), Britain is silently abstaining from making any demand up the Allies for the repayment . of either interest or capital.” As for the business side of the proposals, the position Is that Britain recognises that the AUless.a'nd Germ any are not only hor war debtors, but also her trade co"*

tomers; and potentially, at least, very l>ig customers indeed. Groat as are the war debts, the trade losses, caused by the unsettled state of Europe and tho adverse exchange rates prevailing, are enormous; and, if long continued, might well far outweigh the £3,400,000000 due to Britain from the Allies and Germany. There is the further consideration that, bad as trade is now, had as the unemployed problem at Home is to-day. with some two millions out of work, trade would he very much worse and unemployment far more acute, if, by insisting upon the payment of impossible war debts, the Allies and Germany wore driven into national bankruptcy Still worse would tho situation »e if they were driven to revolution. As Mr Lloyd George stated in tho House of Commons last week, “If the Allies press Germany too far they may get nothing. There is also the added danger of driving Germany to throw herself into the hands of the reactionaries or the Communists.” Tho same applies, though in a lesser degree so far as the danger of revolution is concerned, to the unwisdom of pressing our Allies too hard. If Britain presses them too hard she may not only get nothing in the way of repayment of war debt, hut may also lose her trade; so that she would he worse off tliari ever. Such being the case, Britain evidently considers that it would be wise to cut her losses, to write off the war debts ns bad debts, instead of pressing for payment nt the risk of pushing her customers over tho verge of bankruptcy, and thus losing her trade, which is to her of tho most vital importance. Britain, in Rhort, is so deeply convinced of the economic injury inflicted on the world by the existing state of things that she is prepared, subject to the just claims of other parts of the Empire. to abandon all further right to German reparations, and all further payments from the Allies,’provided this renuncintion is part of the general plan lyclieving that a general settlement will he more valuable to mankind than the most successful enforcement of legal obligations.

Thk United States Government, unfortunately, is opposed to the cancellation of the Allied debts to' America ; and. is a matter of fact, the law under which the United States Debt Refunding Commission was created specifically forbids such cancellation. France, too more especially the French Press, has displayed marked hostility to Britain's proposals. The “Temps” even goes so far as to suggest that Lord Balfour’s Note implies that Britain must be paid whatever happens, and that Britain is Incoming the debt collector for America. Tip. “Temps” adds; “Britain lias not been devastated, and stands to lose nothing. Germany has not been devastated, pays nothing, and will enjoy a moratorium. France alone will hear the brunt of the financial payments and material losses.” This is an obvious, though one would hardly like to suggest a wilful, misreading of the Note. Britain’s intention is a most generous one, the only qualification being that it the sacrifice of debt cancellation is made, the sacrifice must not be on the part of Britain only. This Mr Lloyd George made abundantly clear in the course of the House of Commons debate; while Sir Robert Horne (Chancellor of the Exchequer) quoted some striking figures showing how utterly impossible it is to ask the British taxpayer alone to carry the war burden. Britain’s war debt, he Pointed out. totals £7,766,000.000. France’s £6,340.(500,000 and America’s £5,147,000,0(50, the equivalent per capita, amounts being £lßl, £162, and £47. while taxations per capita worked out ns follow : —Britain £l7 17s, France £9. America £B. In fact, Britain’s taxation per hend is more than equal to that of France and Amorion combined.