NOTE TO AMERICA

Evening Star, Issue 19549, 6 May 1927, Page 4

NOTE TO AMERICA

BRITISH WAR DEBT HR MELLON'S STATEMENTS REFUTED “ESTRANGEMENT OF SENTIMENT.” ’ Press Association—By Telegraph—Copyright. LONDON* May 4. . The British Note to America emphasises that in no circumstances will Britain receive from reparations and interallied way debts combined more than she naysUhe United States, and suggests that Mr Mellon miscalculated —firstly, because he apparently quoted the total receipts of tho British Empire from the Dawes annuities, which (the Note points out) include receipts in respect to costs of occupation, which represent a partial reimbursement of expenditure incurred by Britain. Furthermore, tho British reparation receipts must be distributed between Britain and other parts of tho Empire. Secondly, because he included in Britain’s receipts from Franco sums comprising a private transaction bet-

ween the banks of France and England, from which not a penny accrues to the British Treasury, The Note concludes by expressing a “ desire to maintain and promote a friendly understanding between two great "English-speaking nations,” .but views with great misgiving the divergence of opinion and estrangement of sentiment which is growing as regards those war obligations. It trusts the United States Government will take steps to remove the unfortunate impression created by the issue of Mr Mellon’s statement. —A.P.A. and ‘Sun’ Cable.

AMERICA’S REPLY PURELY A DOMESTIC DISCUSSION. EXPLANATION BY MR MELLON. WASHINGTON, May 4. The Secretary to the State Department, replying to the British Note, said; “I.have the honor to acknowledge the receipt of Mr Chilton’s _Note of May 2, in which he communicates to the Government of United States the comments of the British Government on certain statements contained in a letter dated March 15, 1927, from Mr A. W. Mellon, Secretary of the Treasury, to President Hibben, of Princeton University. The Government of the United States regards the correspondence between Mr Mellon and President Hibben as purely a, domestic discussion, and does not desire to engage in any formal diplomatic discussion on the subject.” Following upon a confereuce_ between Mr Mellon and President Coolidgo, the Assistant Secretary of (Mr Castle), and Mr Mellon issued a' statement in which Mr Mellon pointed out that his letter to President Hibben was not intended as a communication to the Fetish Government. He also said that the British figures, which differ from his, were used in an accounting sense,” and he continues: “In this statement I confined myself to answering the criticism of President Hibben’s letter. It .seems wholly undesirable to enlarge the field of possible differences by comment on the other phases of the British Note. It sefems to me, however, that the reference to the share of the Dawes annuities to bo received by the United States is rather unfortunate, in view of tho very limited claim presented by the United States as contrasted with those presented by our associates in the war.” (Received May 6, at 10 a.m.) The statement discusses the .situation in the fullest detail. It “The Treasury Department, in discussing the payments received from Germany, includes all the payments. The British Government confines itself to payments on account of reparations and the Belgian war debt. Under stick circumstances there is not a disagreement in fact, but a failure to join in the issue. We are now urged to cancel the debts because it is alleged that they were incurred in a common cause. Neither abroad nor In this country has it been suggested that if this is done wo are to be reimbursed'-for the dollars we actually expended in France a_nd Britain, so that the. goods and services us might constitute their contribution to the common cause.” FEELING IN WASHINGTON. NEW YORK, May 5. (Received May 6, at 10 a.m.) The New York ‘Times’s’ Washington correspondent states; “In some quarters the belief is expressed that, inasmuch as the publication of the British Note coincided with the opening of the International Economic Conference at Geneva, the controversy had been reopened at that time because of its possible effect upon the negotiations. Another suggestion was that Britain s internal polities migf ’ have had something to do with the move, and that the war debt problem had been reopened in the hope of diverting _ attention from other strictly domestic controversies.” STATEMENT BY CHANCELLOR. GOVERNMENT'S STEPS UNAVOIDABLE. (British Official News.) Press Assoiiatloi—Bv Wireless-CopyngM RUGBY, May S. (Received May 6, at 11 a.m.) In the House of Commons to-day the Chancellor of the Exchequer was asked whether he was aware that Mr Mellon had repeated the statement that Great Britain was receiving more from the Allied countries than she was paying to the United States, and that these statements were doing great harm to British interests in France and Italy. Mr Churchill replied that both by parliamentary speech and by a, formal Note the Government had recorded Its views on these transactions. He did

not seo how in the circumstances the Government could have avoided taking the steps it had taken. BRITISH PRESS COMMENT. GOVERNMENT’S ACT APPROVED. LONDON, May 6. (Received May 6, at 10.35 a.m.) The newspapers, which were taken by complete surprise by the Note to America, unanimously approve of its contents. ‘The Times’ says: “The last thing desired was a controversy with the United States about the debt which we are steadily discharging, but Mr Mellon’s misstatements obtained wide currency and cannot be allowed to pass unchallenged. It is particularly regrettable that the Secretary of the United States Treasury should have appeared to sacrifice to the demands of domestic politics the scrupulous accuracy ho might so easily have observed.” The ‘ Daily Chronicle ’ says: “ The Note does its utmost to save Mr Mellon’s face and facilitate his making the amende honorable if he so desires.” The ‘Financial Times’ declares; “The Note should clear the air and prevent a recurrence of statements that create and foster harmful misunderstandings.” The ‘ Morning Post ’ says: The country will heartily approve of the Government’s action in stating tire facts to the world. British people cannot but feel it is hard that they should be openly accused by a member of the United States Government of profiting bv a settlement which lowers their/ whole standard of living. Whether ho was influenced by domestic exigencies or not, Mr Mellon published to tne world erroneous statements which we trust ho will see fit to withdraw.” The ‘ Daily Telegraph ’ regrets the necessity for the Note, but says; “The necessity was not of the British Government’s making. It has been thrust upon it by Mr Mellon’s extremely serious inaccuracies. It is difficult to compute the prejudice created thereby against Great Britain in Europe.