WAR DEBTS

Auckland Star, Volume LX, Issue 91, 18 April 1929, Page 7

WAR DEBTS

BRITISH POLICY.

SNOWDEN'S SPEECH

44 Bad Day's Work,'* Declares The Foreign Secretary.

FULL DEBATE IN COMMONS,

'.\n«sfralian and N.Z. Press Association.)

(Received 1 p.m.)

LONDON, April 17

Remarkable interest was taken in tho House of Commons debate, -which was the outcome of the declaration made by Mr. Philip Snowden that the Labour party had never subscribed to the policy of the Balfoar Note (in which Britain undertook not to exact more from her debtors than she was required to pay to the United States), and that the Labour party held itself open, if circumstances arose, to repudiate the conditions of that Note.

There is much speculation in the lobbies on the possible effect of the speech. Members on both sides assume that a new and definite election issue has suddenly arisen. The Labour members' retort is that the Government is deliberately casting about for an "election stunt. Mr. Snowden, in his reply to the Government front bench condemnation, while adhering to his original declaration, somewhat watered down his peroration.

'•What I meant tn say," said Mr. Snowden, was that if circumstances arose when a Labour Government was in office and the question of debts aroee it would consider itself free to negotiate to revise and alter."'

Mr. Ramsay Mac Donald, Leader of the Opposition, supported Mr. Snowden, declaring he had merely enunciated the policy laid down by Labour in 1923, to the effect that England should adopt a generous attitude in the settlement of Allied debts.

"That," said Mr. Mac Donald, "is Labour's policy up to to-day." The "Daily Herald" (Labour) editorially says the question must one day be reopened. If Mr. Snowden made that plain he performed an international service.

Though the original statement was given prominence in the French Press there was little comment. "Llnformation" says it is persuaded that even if Mr. Snowden again were head of the Treasury his viewpoint as an Oppositionist would be immediately transformed into that of a member of His Majesty's Government. The official French view is likewise restrained.

APOLOGY REFUSED.

Mr. Snowden's Reply To Appeals

Of Government.

" COUNTRY BLED WHITE."

(British Official Wireless.)

(Received 1.30 p.m.)

RUGBY, April 17.

In the course of the debate on the Budget Sir Laming Worthington-Evans, Minister of War, replied to the attack made yesterday by Mr. Snowden upon the Allied debt settlement. Regarding the figures quoted by Mr. Snowden, purporting to show that the United States nad extracted from France and Italy better terms than Britain had, Sir Laming pointed out that these were merely lump sums, the total of aH annual payments to be made year by year over a Period of 62 years, without any regard for time of payment. "Now I come to the most serious aspect of Mr. Snowden's speech," said Sir Laming, "and I want to be very careful to pick my words. We were all greatly surprised and startled yesterday by the statement which Mr. Snowden made, that he and his party would, if returned to power, hold themselves to repudiate the fundamental principles of the Balfour Note, namely, that Great Britain should take no more from Europe by way of debt and reparations than she requires to pay her own obligations to the United States. That principle has been for seven years the foundation of the treatment of European debt problems by every Government that has held office here. It would surely be a wanton and reckless act, in no way called for by anything that has occurred, for Mr. Snowden and his party now to threaten to repudiate the principle upon which every forward step towards European reconstruction and peace has been taken. If such a declaration were persisted in, and Europe were led to believe that the policy aimed at was to obtain larger payments of debts and reparations than were required for our payments to the United States, the utmost injury would he done, not only to British interests, hut also to the wider interests of Workl Peace."

Sir Laming said he believed Mr. Ramsay Mac Donald was speaking later in the debate, and he asked him formally whether he accepted adn endorsed the declaration of Mr. Snowden, and if it constituted the official policy of the Labour party. Mr. Snowden Explains. Mr. Snowden, on rising, 9aid he was Surprised that any observations of his should be the subject of a Cabinet discussion and a Cabinet memorandum presented to the House.

"I decline," he said, "to make any apology for what I said yesterday. I do not intend to withdraw a single word t>f it. I must express my surprise at the prominence and attention that has been given to my remarks, for it was by no weans the first time I have made that statement in the House of Commons.

The policy of the Labour party regarding debt settlement, and one that had bften been stated, was that they would favour an all-round cancellation of debts and reparations. That policy was enunciated in the concluding sentences of Lord Balfour's Memorandum (which Mr. Snowden proceeded to quote). It was not that part of Mr. Balfour's Note that he had attacked yesterday. It was to the other part of the Note, that if an allround cancellation could not be secured we should be a burden on ourselves for the benefit of our Continental neighbour. The Labour party had been taunted with being the friends of every country but their own. "I am sufficient of an Englishman," declared Mr. Snowden, "not to be content to see my country and my people bled white for the benefit of ftther who are far more jrnfe* tJuiltfitiß-

Debt Repudiation Not Suggested. Mr. Snowden recalled the words lie had used yesterday and asserted there was not a word there about the repudiation ot debt. As to tlie circumstances which were likely to arise when they would hold themselves open to repudiate the conditions of the Balfour Note, did the Government think the present conditions in regard to international debt and reparations were likely to be permanent? Was there any man who thought the debt agreements which had been made were going to remain in force without a change and without modification for the next sixty years ? An expert committee was sitting in Paris, and he contended it was just as much concerned with the question of inter-Allied debts as with the question of reparations. He had made his statement the previous night on the spur of the moment. It was not a considered statement at all, and if he had had time to prepare a statement he did not think he could have improved on that which he had made. Was it not a common practice, almost the daily practice, of the Foreign Office to enter* into communication with Foreign Governments regarding the revision and amendment of the treaties which had been found to inflict hardship, and was the practice of denouncing treaties altogether unknown?! unknown I

It was perfectly absurd to say an agreement entered into by one Government should be binding on future Governments to accept and never to say that by negotiations it could not b cehanged. That was what he meant when he said if circumstances arose when the Labour party was in office and the question of an amendment or revision of the Allied debts arose, then they would consider themselves free to enter into negotiations to revise and alter the Balfour Note. LABOUR'S OFFICIAL VIEW. QUESTIONS BY CHURCHILL. (Australian and N.Z. Press Association.) (Received 2 p.m.) LONDON, April 17. Mr. Winston Churchill, following Mr. Snowden, said the country, and the world, had a right to know Labour's official view regarding the State's plighted obligations. Mr. Snowden had said Labour favoured the cancellation of all debts. How could he reconcile that with his strident assertion that if he had the power he would insist on reclaiming more from ruined Europe than we had agreed to pay the United States? That was the point with which the Government asked Mr. MacDonald to deal. Ever since the Balfour Note was written Britain had been able to go to any international gathering with clean hands and conscience. The Note had been the foundation of the decent relations of Britain with the Governments of Europe and the underlying principle of every step that had been taken to place the affairs of Europe on a more peaceful and solid basis. Its principle was recognised by the reparations experts at present sitting in Paris. Mr. Snowden claimed that Labour represented peace and the true spirit of the League of Nations, and yet he now deliberately said that Labour held itself free to repudiate agreements with France and Italy in order to extract larger sums from them. He used the term "bilking,'' which was a slang expression from the gutter to convey his hatred and contempt of the nation with whom we were on the closest and most intimate personal relations.

Appeal To Labour Leader. Mr. Ramsay Macdonald said he would donald has played a distinguished part in the appeasement of Europe and hopes to be re-entrusted with power. For the sake of European peace I appeal to him to give a more loyal and more faithful answer to the question put to him than Mr. Snowden has given. "Tub-Thumping," Says Labour Leader. Mr. Ramsey Macdonald said he would deal with the general subject later. Meantime he hoped the Ministerialists would not descend to "tub-thumping humbug" about it. Mr. Churchill had deliberately encouraged bad blood and made things more difficult in order to make a mere electioneering point.

Sir Austen Chamberlain said the Balfour Note had been seven years before the world as an explicit statement of British policy on the subject of Allied debts. Mr. Snowden had described as infamous the declaration that Britain should ask no more from her Allies and her former enemies together than was required to pay the United States. This was tho basis for the financial reconstruction of Europe and was the basis of the political structure of peace.

"This is not a question of tub-thump-ing. lam not going to use the language of the street corner. I say deliberately, as Foreign Secretary, that no worse day's work has been done in any Parliament, no greater setback has been caused to progress already accomplished or which it is hoped to accomplish in the next few months, than Mr. Snowden's rash words. I beg Mr. Macdonald, who held the office and knows the difficulties and delicacies of the situation, to speak before the end of the debate some words of reassurement to the world, to tell them that whatever party is in office, England will keep her word in order that the world shall continue to have faith in our good name."

Air. Runciman (Lab., Swansea) did not desire to comment on the agreements but wished only to make it clear as far as the Liberals were concerned that they would not depart from the doctrine of continuity to the contracted international obligations.

Mr. Graham (Lab., Edinburgh Central) asked if any impartial member of the House of Commons would believe the Balfour Note was the beginning and end of debt arrangements ? If so, a large part of the industry of Europe, particularly Britain, was going to struggle vis a vis with the United States for the whole remainder of the century. party should close the door against cicellation of the inter-Allied debts, however difficult its attainment. "Labour Will Honour Signature." Mr. Mac Donald, rising later midst wild Labour cheering, said both Mr. Snowden and Mr. Thomas were given to taking adjectives from the "mustard pot." Some of Mr. Snowden's seemed to have developed into high party politics. As a result Mr. Runciman feit called on to stand up as white as a sheet and say: "Please we do not belong to these publicans." He hoped this matter was not going to be made another stunt, as he presumed Mr. Churchill was trying to make it. There was the accusation that Labour, if elected to office, would not honour Britain's signature. None knew better than Sir Austen how little substance was in that suggestion.

Sir Austen Chamberlain: I have not made any suggestion against you, but it is only inference from Mr* Snowden'* .wferdst '

"Injustice To Labour." r - Mac-Duuald said the suggestion wa» a gross injury and injustice to the party. if tlie Government wanted to make it a party cry, they were welcome. Ihere \vas never anv'question of -Labour repudiating the agreements except by a negotiated revision. -Mr. Churchill, interening, said he was p eased that Mr. JMacDuiiald repudiated -Mr. tsnowden's statement. Mr. MacDouald: What Mr. Snowden said was that agreements are not sacred against revision. The Government ® 110 ri c Tiit to go to the country on .untrue statements. As long as I am the Labour leader there will be no repudiation. All that was in Mr. Snowden's mmd was whether the conditions of the Bali our Note, when considered as a lard-headed business proposition, were not rather inimical to England. Labours position had been laid down clearly again and again. The party conference of 1923 pas-ed the resolution that: "The conlerenee renews its repeated declaration that tliU country should adopt a generous attitude in the matter of the settlement of Allied debts as part of the general settlement of the reparations problem."' .That, declared Mr. MacDouald, "is the police of the party up to to-dav. i said to-day, not to yesterday, it will continue to be the policy of Labour after the election/'

Mr. Churchill, replying to the debate, said he had hoped Mr. Snowden on the previous day had only been guilty of an inadvertence. Yet to-dav he reiterated his remarks deliberately. The I>oint at issue was whether* Lal our accepted his view that agreements Iv a Government bound its successors. *Ho understood Mr. Mac-Donald completely dissociated the party from Mr. Snowdens rejection of this principle.

"EUROPE'S SHYLOCK."

Vigorous Reply To Speech By

Mr. Snowden.

RUIN BRITAIN'S REPUTATION. (Australian Press Assn.—United Service.) (.Received 11 a.m.) LONDON, April IT. Speaking at Glasgow, Sir Robert Home, Chancellor of "the Exchequer in 1921-22, vigorously replying to Mr. Snowden's speech of last "night, regarding Britain's debt policy, said that Mr. Snowdens proposals embodied not only the ruin of the reputation of Britain for keeping her bargains but at the present moment would have the effect of upsetting the whole financial arrangements of Europe.

It might cause a serious crisis in Britain s relations with other countries. If Mr. Snowden were to be believed Labour was ready to overthrow the principles on which Britain's financial relations with the Allies were established. to rip up her agreement and to start her on a new career as "Europe"* Shvlock."