WAR DEBTS.

Taranaki Daily News, 9 February 1921, Page 5

WAR DEBTS.

PROPOSAL TO CANCEL. WHAT AMERICA THINKS* A POLITICAL SENSATION. By Telegraph.—Press Assn.—Copyright. London, Feb. 7. The New York correspondent of The Times says that Mr. Chamberlain’s statement with regard to the proposal for cancellation of international debts came as a great surprise to the public. It has caused a great political sensation and stirred up all the anti-British and Irish elements In Cong.ess and all over the country. Treasury officials fear it is designed to create the impression that the Allies are suffering an undue financial burden, though the United States Treasury officials argue that if the Allies collect the German indemnities they can easily pay the United States. They also express resentment that Washington has been ignored over the Palestine, Mesopotamia and Island of Yap mandates. —’Times.

[Mr. Chamberlain stated that he would have preferred that at the end of the war the whole international debt of the Allies and the associated Powers had been wiped out enabling all to commence with a clean slate. He added that there was no proposal for the settlement of international debts among the Allies and associated Powers, whether total or partial remission, to which, Britain was not prepared to be a party. “We made such proposals,” he said, “but they were not acceptable to America. It would be beneath ofir dignity to make them again and render our motive liable to misconception. We Bought no international advantage for ourselves, We proposed a solution by which we should have forgone larger claims than would have been remitted to us, but we proposed it in the interests of good relations among people’s, and for the restoration of international trade. Our great external debt is due to obligations undertaken on behalf of our Allies.”] NO CANCELLATION. OFFICIAL U.S. STATEMENT. Received Feb. 8, 5.5 pm. Washington, Feb. 7. Mr. Houston (Secretary to the Treasury) to-day repudiated the report that the United States indebtedness would be cancelled. Mr. Mondell, the House leader, said an agreement had not been reached. Aus.-N.Z. Cable Assn.