WAR DEBTS

Taranaki Daily News, 3 August 1922, Page 5

WAR DEBTS

POLICY OF BRITAIN. TO FOREGO ALL CLAIMS. REPARATIONS INCLUDED. AN AGREEMENT SOUGHT. A highly-important document outlining Britain’s policy regarding debts owing to her by the Allies and German reparations has been issued. Britain is prepared to abandon all her further rights to German reparations and all further payments from the Allies, provided this renunciation is part of a general international settlement. This does not mean that Germany should be relieved of her obligations to France and the other Allies. By Telegraph.—Press Assn.—Copyright. Received Aug. 2, 5.5 p.m. London, August 1* The text has been issued of Lord Balfour’s Note sent to the Allies in reference to war debts. It points out that the war debts, excluding interest due to Britain, at preesnt amount to £3,400,000,000, of which Germany owes XI,450.000,000, Russia £610,000,000 and the Allies £1,300,000. On the other hand Britain owes the United States about £860,000,000 at par exchange, together with interest since 1919. No international discussion has yet taken place. This is an unexampled situation, and pending a settlement which would go to the root of the problem. Britain is silently abstaining from making any demands upon the Allies for repayment of either interest or capiBritain is prepared, if such a policy formed part of a satisfactory international settlement, to remit all debts due to Britain from the Allies in respect to loans, and from Germany in respect to reparations. Recent events have made such a policy difficult of accomplishment, because the United States required Britain to pay accrued interest on the Anglo-American debt, converting the same by means of a sinking fund within a quarter of a century. The British Government recognised her obligations, and is prepared to fulfil same, bat cannot treat the repayment of the Anglo-American loan as though it were an isolated incident in which only Britain and America are conAID TO STABILITY. It was but one of a connected series ni transactions in which Britain appeared sometimes as debtor and sometimes as creditor. If Britain’s undoubted obligations as a debtor were to be enforced, her equally-undoubted rights as a creditor could not be left wholly in abeyance. Britain was owed more than she owed, and if all the mter-AUied debts were paid Britain would be a large gainer. Many of the Allied associated Powers were creditors and debtors between each other. Their debts were incurred and loans made, not for the separate advantage of particular States, but for a great common purpose, which in the main was accomplished. The economic troubles from which the world was suffering were due to many causes, certainly including the weight of international indebtedness, with its consequent unhappy effects upon credit, exchange, national production and international trade. Britain’s policy hitherto in refusing to make demands upon her debtors was only tolerable so long as it was generally accepted that it was not right that one partner in a common enterprise should recover all she had lent, and another. while recovering nothing, should be required to pay all she had borrowed. The people of Britain were suffering from an unparalleled burden of taxation, an increased diminution of national wealth, serious unemployment, and the curtailment of useful expenditure. These evils were being courageously borne, but if they were increased by a legitimate, but one-sided arrangement, the British taxpayer would inevitably ask why he should be singled out to bear the burden which others ought to share. REMISSION OF ALL DEBTS. The Government, therefore, with regret felt constrained to request the respective Governments to arrange for dealing, to the best of their ability, with loans. Britain dewrea to explain that the amount of interest repayment die asks depends not so much on the amounts of the Allies’ debts to Britain as on what Britain has to pay America. The policy which the Government favors is surrendering Britain’s share of German reparations and writing off, by means of one transaction, the whole body of inter-Aihed indebtedness. If this is impoerible of accomplishment. Britain wishes it understood that she does not in any event desire to make a profit from any leno satisfactory arrangement. Britain undir no circumstance* proposed to demand more from her debtors than w&« necessary to pay her creditors. While she does not seek more, all must admit she can hardly be content with less, for it should not be forgotten that Britain’s liabilities were incurred not for self but for others. Britain does not suggest that either as a ■matter of justice or expediencv Germany should be relieved of her obligations to Prance and the other Allies. The Government, speaking only for Britain, are contenting themselves with saying that they are so deeply convinced of the economic injury inflicted on tfce world by the exiaring state of things that Britain is prepared, subject to th* 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 renunciation is part of a general plan, believing that a general settlement would be more valuable to mankind than the most successful enforcement of legal —Aus.-N.Z. Cable Assn.