THE WAR DEBTS

Dominion, Volume 16, Issue 149, 12 March 1923, Page 7

THE WAR DEBTS

BALFOUR NOTE DECLARED MISLEADING AMERICAN AMBASSADOR’S COMPLAINT REPLIED TO IN HOUSE OF LORDS Lord Balfour, in a statement regarding the complaint of Colonel Harvey that part of his Note regarding the war debts was misleading, said he could not find anything misleading or obscure in anything that had passed. Lord Balfour explained that ho made the statement lest his silence should be misunderstood. BY TELEGBAPH—PRESS ASSOCIATION. —OoFTBIGHT. London, March 9. LorTßalfour, in the House of Lords, drew attention to misunderstandings arising from his Note last August, dealing with international indebtedness. Jle had not participated in subsequent controversies, thinking that as the time passed and changes occurred tho matter might be allowed to rest, but as the American Ambassador had declared the Balfour Note misleading and requested his Government explicitly to remove the impression tho Note had caused he thought his continued silence might be misunderstood. Tho _ passage Colonel Harvey complained of stated that the United States ’insisted that, though the Allies were to spend the money in America, they were only prepared to lend on Britain’s security. Lord Balfour said that ho could not find anything that had passed misleading or obscure. Britain had suggested that, as she has hitherto borne the burden of financing tho Allies, America, which had just entered the war, should relieve Britain of the duty of further financing the Allies. If tho United States had adopted that plan there would have been no American loan to Britain, and many controversies would have been avoided. But the United States refused to lend except to Britain, throwing a double burden upon us, which wo were still carrying. If the United States opinion adhered to the view that wartime deals between partners must be regarded as separate and isolated undertakings, America’s incontestable rights could not have been enforced in a manner less likely to impair happy Anglo-American relations than it had been recently.—Aus.N.Z. Cable Assn. UNITED STATES GOVERNMENT NOT CONCERNED IN HARVEY-BALFOUR DISPUTE Washington, March 8. The State Department officials have declined to comment on Lord Balfour’s speech. They said they regretted the revival of the controversy, and, since Colonel Harvey (Ambassador in London) was not acting upon instructions, the State Department did not believe that the dispute was a matter of concern to the United States Government. The truth of Colonel Harvey’s assertions rested between himself and Lord Balfour. —Aus.-N.Z. Cable Assn. PERSONAL CONTROVERSY (Rec. March 11, 5.5 p.m.) Washington, March 10. Government officials are disposed io regard the Harvey-Balfour controversy as personal, since Colonel Harvey’s claiim that the United States did not attempt to hold Britain responsible for loans granted to the other Allies was entirely in accord with the statement of Mr. Mellon, Secretary of the Treasury, regarding the Allied debts published last August.—Aus.-N.Z. Cable Assn. STATEMENT BY MR. McADOO BRITISH RESPONSIBILITY FOR LOANS TO ALLIES NOT DEMANDED BY THE UNITED STATES (Rec. March 11, 11.5 p.m.) Now York, March 10 At Los Angeles Mr. W. G. McAdoo iu a statement said’ “I am at a loss to understand how Lord Balfour, for whom I have great respect and admiration, could have gained the impression that the United States insisted on the ! substance, if not the form, Wat although Britain’s allies were to spend the money it only on Britain’s security *<hat the United States was prepared to lend It. Th.* loans to tho Allies were made through mo as Secretary of the Treasury arthe time. It was never suggested or intimated by me or Lord Balfour, in my discussions with him as head of the British Mission to the United States in May, 1917, that Britain should assume any responsibility what ever for loans the United States might make to other Governments than Britain. Every loan made to Britain. Franco, Italy, or Belgiunj was made on the faith and credit of each respectively and independently of the others, except in so far as an intelligent effort was made to distribute tho available credits among them in such a way as to best secure their effective use for war purposes.’,’—Aus.-N.Z. Cable Assn.

BRITISH DEBT SETTLEMENT FINAL CONTRACT DRAWN UP (Rec. March 11, 5.5 p.m.) Washington, March 10. The final contract for tho British debt settlement was drawn up at today’s meeting of the American Commission. It will bo signed to-morrow —Aus.-N.Z. Cable Assn.