WAR DEBTS.

Taranaki Daily News, 4 August 1922, Page 5

WAR DEBTS.

OPINION OF THE PT.AM. BITTER FRENCH COMMENT. AMERICA BARS THE WAY, ENGLISH PRESS VIEWS. By Telegraph.—Pres* Aso—Copyright. Received Aug. 3, 5-5 pja, London, Aug. 2. The Daily Express states Lord Balfour’s Note regarding war debts contains proposals which are eminently right and likely to meet with the British taxpayer’s unqualified approval, but the form thereof is another matter. It is equivalent to appealing to American opinion to throw over their Government’s declared views regarding war debts. If it had succeeded it would have been an immense stroke. Failure must have been proportionately great, and it is already clear it has failed. The Daily Chronicle says: ‘‘We ex*-peete-1 some French commentators wood draw a moral from the Note that a® Britain was not prepared to remit to France more than three-fourths of her debt to Britain. Fraace must get the outstanding fourth from Germany. What France can do m to ruin Germany. keep Europe in turmoil and accumulate materials for a future explosion. What France cannot do is to pay her debts by the occupation of German territory. Imprisonment for debt, which is France's way with Germany, may or may not be a just retribution for the debtor e sms. but it is a way that never ha-s brought much money to the creditors’ account. We believe France will realise this truth and act thereon.” The Daily Telegraph says the result of the Note is seen in M. Poincare’s ultimatum. The situation thus created is so delicate and difficult that either a solution must speedily be reached or the strain will become greater than can he regarded with equanimity- America’s attitude to Britain does not affect the Note, which demonstrates that Britain is ready to lead in practical renunciation. The Telegraph points out that Britain’s obligations to America were incurred on behalf of the Allies, because America would not lend except , upon British security. Britain does not complain at having to repay, but says ■ it cannot be right for one partner in a 1 common enterprise to recover all she lent while the other, recovering nothing, has to repay all she borrowed. The Note is logically and equitably complete and unanswerable. GOVERNMENT DIVIDED. The Morning Post says America is opposed to Lord Balfours subtle proposal, which is a psychological blunder of the first magnitude and has committed the British Government. It is notorious that the Government is divided regarding the subject. Sir Robert Horne (Chancellor of the Exchequer), the Treasury, the greatest experts in international affairs, and the city of London were against the publication of the Note, which was only issued after much hesitation. The document, which was addressed only indirectly to America, created the impression that Britain was about to default and was trying to escape. not by honestly, brntally and bluntly declaring her inability to pay, J>ut by an underhand method of a specious communication with her unhappy debtors. The result is that the co-operation of the United States in the restoration of Europe is indefinitely postponed. Moreover. Mr. Lloyd George cannot protest if the poilu instals himself in the Ruhr Valley and Marshal Foch can polish his sword with a clear conscience. The Daily Herald says America cannot get money from Britain without 1 kitting her own industries. Already she ’ has a vast amount of unemployment and overstocked warehouses. The Herald adds: “It has taken years to bring ! to Britain that measure of sense in- | ' dicated in the Note, and it will take America years to overtake it. Let us assume we are sroin? to pay, and America will pay dearly for the payment.” The Daily News believes that “sooner or later, by her own impulse and never at our instigation. America will realise her opportunity for helping in a world settlement in this matter of indebtednee” We also believe that Britain will realise- that if her debtors can be brought to forgive in their turn, her x ■forgiveness will be worth the sacrifice, whatever other obligations may rest upon her.” ,

DANGERS INVOLVED. The Westminster Gazette says the problem of inter-Allied debts and their relation to the German indemnity is not a matter of ethical dialectics, but practical business, and our most urgent necessity is to persuade France so to regard it. The American’s feelings wbout the sanctity of claims against Britain cannot he compared with the Frenchman's feelings about the sanctity of his claims against Germany- France cannot force payments from Germany without causing a European catastrophe, damaging to herself and equally disastrous to Britain. Similarly, we cannot force our claims against her or cur other Allies. We hope the Government will think again, devoting more attention to the urgent necessities of the European situation and less to the exceedingly hypothetical effects of its logic upon American opinion. The Federation of British Industries, commenting on Lord Balfour’s Note, points out that the British taxpayers are now carrying a burden equivalent to a shilling on the income tax. whieh is likely to rise to Is fid as soon as the sinking fund payments begin in order to relieve the taxpayers of Allied debtor countries from their liability, which they cannot at present meet. In view of Britain’s trade depression, the most severe in the country’s history. a proposal involving further sacrifices by Britain should be most closely scrutinised. The risk involved in cancelling any substantial portion of the debts owed to her outweigh” any possible advantages, and neither the nation nor industry can afford to gamble on a chance of besu geste, evok-’ ing corresponding philanthropy -in other countries. FEELING IN FRANCE. A HOSTILE RECEPTION. VIEWS OF LEADING PAPERS. Received August 3, 5.5 p.m. Paris. August 2. Britain** JSeta «tth

war debt met with a hostile reception. The Journal observes that “as Britain insists on our paying her. we will be able to repeat her gesture and point our, finger in the direction of Berlin.” The Journal adds: “It is a matter for wonder how Mr Lloyd George can. in one breath, press us for payment and yet declare that the moratorium is indispensable to Germany.” The Paris Temps bitterly suggests the Note implies Britain must be paid whatever happens. Britain is becoming the debt-eollector for America. The Temps adds: “Britain has not yet been devastated and stands to lose nothing, while Germany has not been devastated and pays nothing and will enjoy a moratorium. France alone will bear the brunt of the financial payments and material losses.” The Journal des Debats accuses Britain 6f stealing M. Poincare’s “thunder.” Knowing M. Poincare had a scheme to offer, she rushed in with a counter-proposal. It would have been better to await the London conference before issuing the Note. The Liberte declares the Note renders the approaching conference not only useless but dangerous. Britain is bent on obtaining al! possible advantages for herself, and France henceforth must fend for herself and display the firmest policy towards Germany.