WAR DEBTS.

Hokitika Guardian, 4 September 1922, Page 2

WAR DEBTS.

,, r I AUSTRALIAN ANU N.Z. CABLE ASSOCIATION. FRENCH OPINION. PARIS, Sept. 1. In replv to Sir A. Balfour’s note, Cabinet suggests tlisit the Allied Uonl'erenee should examine the questions of debts and reparations. Cabinet has accepted the Reparation Commission s det'isiciii: . The “Journal” considers GermiLily las received facilities almost equivalent to a moratorium. The “Echo Do Paris” says the Commission’s decision practically means that an isolated State could negotiate with Germany on a question intimatrlj concerning her.

GERMAN VIEWS. - BERLIN. Sept. 1 The newspapers welcome the breathspace but anticipate difficulties of nicotine the Belgian demands. All declare the Keichsbank will never allow its S old to be deposited in any foreign banl*.

FRANCE’S REPLY. PARIS, September 2 U. Poincnire, in reply to Lord Bah tour’s note, lias banded to the British Amba-ssndof a note which states the French Government highly appreciates the ilohle and courteous terms of the note, aiiii is convinced the reparations problem will not receive a final solution unless linked with the problem of the Allied debts. The question should he examined in all its aspects as soon as possible at a conference to which all the Allies concerned should he invited. If the Allied Governments had net afforded one another reciprocal financial aid, out of which the war debts arose, the war would have ended badly, Of humid iiaCe lasted longer. It was the lending countries which should have made either, by the4r industries or by despatching large effective forces, the effort which the borrowing countries made on their behalf. All these debts were contracted in the interest of a common cause. As Lord Balfour had excellently sitid, thfe I'utcr-AllieS debts were contracted, not for each, bus for a great aim common to all. Such a realisation would justify the cancellation of the debts. At least it could not be contended that it did not give these debts a character different from ordinary international debts. France who was most affected hv the territorial destruction, had been compelled to begin the reconstruction of her devastat. ed provinces, owing to Germany’s promised payments not being made. It was the advances for this purpose which brought, about the present instability of France’s Budget. The French Government, which only borrowed from the United States and Britain to cover her purchases and without any question of security, or a third pnrtv. "ill have to draw distinction between thy war debts owed by France to these two countries. Part „f the French debt to the United States was contracted after the armistice, to cover the purchase of American stocks taken over by France, and' resold for the benefit <>f the French TreasuryThis is n commercial debt. The rest of America’s claims against France are similar to the other Inter-Allied claims. It cannot he forgotten that the United States entered the war without its existence being directly threatened, but Britain, like France, had to safeguard, not only its independence and territory, hut also the life and property, and means of existence of her people. Britain’s claim, which had not yet been determined in actual figures, should lie subject to revision. For instance. the British Quartermaster-Gene-ral had debited to France all deliveries of foodstuffs and material at the maximum prices and had added thereto departmental expenses. On the other hand, various French departments had debited material to the British Army at a lower tariff, without adding the general costs.

The French Government asks to be treated as it treats the joint Allies. It does not demand payment of sums the Allies owe it. realising that morally and materially such a demand would not bo advisable.