BRITAIN AND U.S.A.

Evening Star, Issue 18021, 15 July 1922, Page 4

BRITAIN AND U.S.A.

WAR DEBTS. Press Association—By Telegraph—Copyright. LONDON, July 14. The ‘ Daily Express.’ states that a British Mission will proceed to the United States to discuss the debt question. Sir Robert Horne will probably accompany tho mission.—A. and N.Z. Cable. [■Writing recently on the subject of Britain’s indebtedness to the United States, which as approximately £1,050,000,0Cf0, Mr A. Maurice Lowe, the Washington correspondent of the ‘Morning Post,’ stated: “ The impression evidently exists in the minds of the public in both countries that it is in the power of the Unitedi States at any time to demand the payment of the dent, and that England must either meet the demand—which would be physically impossible, because the terms of the loan, require that it shall ho repaid in gold—or suffer:the humiliation of being declared a defaulter. The United States does nou possess this ‘ whiphand,’ and there need bo no fear that the United States can or would—without violation of the contract, which, of course, need not for a moment he entertained —make any sudden demand for payment.” The financial relations between the United States and Britain are governed by the terms of the first, second, third, fourth, and fifth Liberty Loan Acte. After reviewing the provisions of those Acts, Mr Lowe proceeded: “It will he clearly seen that the United States cannot make any demand on tho British Government for the immediate payment of the. sums borrowed during tho war; that the British Government is required, under the terms of tho various Loan Acts, which is the essence of tho contract, to deliver to tho Secretary of the Treasury on his request bonds bearing a rata of interest not less than tho highest rates of interest paid by the American Government on its own bonds; that tho British bonds shall mature and become payable in part in 1938, and that the entire debt must bo liquidated not Infer than 1947. The terms are so clearly set forth in the various Acts I have cited that they admit of no misinterpretation. "The'only question open to discussion is the settlement of tho .deferred and accrued interest. Inasmuch as the United States paid tho interest on, its own bonds regularly on the designated interest dates, and only part of tho interest on the British loans has- been paid, the American Government can equitably claim that tho deferred interest shall be paid in cash, instead of being included in tho principal amount. But that is a matter of comparatively easy adjustment. The main fact, as 'l have explained, is that thoro’ can bo no demand made upon the British Government for tho repayment of the money borrowed for at least seven toon to twenty-six years.”] WASHINGTON, July 2. Tho United States Debt Funding Commission expects that the interest on payments by debtor nations, with tho possible exception of Great Britain, will ho deferred for several years. Tho Treasury officials explain that debtor nations are unable to meet their payments duo next October. The United States merely desires to negotiate a basis upon which the payments can bo started when the debtors arc able to do so. ■ The United States has received encouraging reports from Paris. The French Commission is planning to commence payments of interest on France’s indebtedness within two years. AMERICAN - CARGO SHIPS. A CLAIM ADJUSTED. ' WASHINGTON, July 13. The British Government has paid the United States Shipping Board 12,000,000 dollars in settlement of tho claim of tho United States for 22,0C0,C00d0!) for the use of American ships to carry cargo shipments during and after the war. The British Government had contended that the United States owed it 26,000,000J0l on a similar claim, but after ft year of negotiations Britain agreed to settle the controversy by tlie payment of ‘ 12,000,000d01.—A. and N.Z. Cable.