POLITICAL TOPICS

Dominion, Volume 26, Issue 103, 25 January 1933, Page 9

POLITICAL TOPICS

Britain and War Debts to United States SIR JOHN SIMON’S FIRMNESS (Reuter— Special to “Dominion.") London, Dec. 12. The war debts position continues to occupy political and public attention. Now that it is clear that the December instalment of the British debt to the United States is to be paid, the question which the man in the street is asking is, “If we are to pay America are our Continental debtors going to pay us?” As the next French payment to Britain is in any case not due until next March, the issue does not immediately arise, but unless before then some complete agreement with America is reached, the whole of the Lausanne Agreement, by which the inter-European debts were to all intents and purposes indefinitely shelved, will have to be reopened. The Lausanne agreement, it is considered, cannot stand if payments to America are to be continued. There is a growing feeling that the December payments must be the last to be made, so long as world conditions remain as they are. There is general agreement on all sides in this country that Britain cannot continue paying the American debt unless France and Italy and her other debtors pay up. The New Year will see further debt negotiations in full swing, and some solution will have, of necessity, to be found. At the moment exactly what it will be no one can foresee —cancellation, indefinite postponement or revision. It seems impossible that Europe can abandon Lausanne and return to all the chaos and Franco-Ger-man friction which reparations involved. And if Lausanne is maintained Britain cannot afford to relinquish the French payments and France cannot afford to forgo German reparations. In the European view the “economic blizzard” through which the world is passing will continue until war debts are got out of the way. America answers that debts are but one cause of the troubles and looks for payment of the debts. How to break this vicious circle will be the preoccupation of Ministers in this and other countries. Plain Speaking to Persia. Much satisfaction has been aroused In Ministerial circles by the firm hand shown by the Foreign Secretary in dealing with the Persian Government’s cancellation of the Anglo-Persian Oil Company concession and with the Soviet on the question of propaganda. One of the greatest complaints against the Labour Government was that when affronted by Russia in the matter of propaganda it took no effective action to secure satisfaction. Sir John Simon, however, has blended firmness with conciliation in an admirable manner and the very strong tone which he has adopted in regard to Russia and Persia is very refreshing to those who like to see British interests abroad defended and Britain’s dignity upheld. In both cases there is ample justification for the attitude take up by the British Government, and not even the most ardent-internationalist or pacifist could complain of it. ’ It feR to Mr. Eden, the Under-Secretary for Foreign Affairs, in the absence of his chief, Sir John Simon, at Geneva, to announce the British Government's policy to the House of Commons. A chorus of approving Ministerial cheers greeted his emphatic assertion that the British Government would not hesitate in case of need to. take all legitimate measures for the protection of Britain’s “just and indisputable interests” in Persia. Years ago, such an indefensible action as cancellation of the concession would have been met by a demonstration of armed force, but in these days of conciliation and arbitration, the British Government has adopted the only possible course in deciding to submit the whole dispute to the International Court of Justice at The Hague, if Persia refuses to withdraw the cancellation. Apology Demanded from Soviet. The new British representations against Soviet propaganda were necessitated by instructions sent by the Third International to the British Communists for the formation of Communist groups in military units and similar organisations and by its instructions to the Communists in India to support the non-payment of rent and taxes and to organise a general strike. The old Soviet argument that the Soviet Government is not responsible for the actions of the Third International cuts no ice in these days and, moreover, this glaring instance of anti-British propaganda had been capped by a disgraceful allegation published in the Soviet newspaper “Izvestia” suggesting that the British Foreign Office had instructed its agents in Russia to furnish documents, real or bogus, establishing a connection between the Soviet Government and the Communist International. . Successive British Governments have been very forbearing and long-suffering over Soviet propaganda against this country, and Ministerialists here again were delighted that Sir John Simon had put his foot down in such a decisive manner. To tell the Soviet Ambassador that his Government must apologise for the “Izvestia” allegations if they wished the forthcoming Anglo-Soviet trade matters to be discussed in the usual manner as between Governments in friendly relations was plain speaking which Ministerialists appreciated to the full.