THE WAR DEBTS.

Taranaki Daily News, 4 September 1922, Page 5

THE WAR DEBTS.

THE POLICY OF FRANCE. CONFERENCE URGED. COMMON CAUSE ASPECT, HELPED TO WIN WAR. By Telegraph.—-Press Assn.—Copyright. Received Sept. 3, 5.5 p.m. *“ Paris. September 2. M. Poincare’s replv to Lord Balfour’s Note regarding AlFed war debts has been handed to the British Ambassador. It states the French Government highly appreciates the noble and courteous terms of the Note, and is convinced that the reparations problem will not receive final solution unless it is linked with the problem of Allied debts. The question should be exanvned in all its aspect’ as soon as possible at a conference to which all the Allies concerned should he invited. If the Allied Governments had not afforded one another reciprocal financial aid out of which war debts arose, the war would have ended badly or lasted longer. It was the lending countries which should have made, either by their industries or by dispatrh ; ng large effective fotces. the effort which the borrowing countries made on their behalf. Al! these debt’ were contracted in the interest of the common cause: as Lord Balfour excellentlv said, the inter-Allied debts were contracted not for the individual benefit of a particular State, hut for the great a>m common to all. Such realisation would justify the cancellation of the debts: at least it cannot be contended it does not give these debts a character different from ordinarv international debts. France, who is most affected by territorial destruction, has been compelled to begin reconstruction of the devastated nrovjnees owing to Germany’s promised pavments not being made, and it was advances for this purpose which brought about the present instability of France's Budget. The French Government. which on’y borrowed from the United States and Britain to cover her purchases, and without any question of security and the third partv will have to draw distinction between the war debts owed bv her to these two countries. Part of the French debt to the United States was contracted after the Armistice to cover the purchase of American rtocks taken over bv France and re-sold for the benefit of the French Treasury. This is a commercial debt, hut the rest of America's claims against France are similar to the other interAlliod claims. It cannot be forgotten that the United States entered the war without its existence bein'” directlv threaten**!, but Britain, like France, had to safeguard not only independence and territory, but also the life and propertv and means of existence of her people. The British claim, which has not yet been determined in actual figures, should be subject to revision. For instance, the British Ouartermaster-General debited all deliveries of foodstuffs and material at the maximum price and even added thereto departmental exoense- while on the other hand the various French departments debited material to the British army at a lower tariff, without adding genera! costs. The French Government «=k? fo be treated as it treats the joint Allies. and it docs not demand the pavment of sums‘the Allies owe ’t. realising that morallv and material!*- such a demand would be inadmissible. —Aus.-N-Z. Cable Assn.