Greymouth Evening Star. AND BRUNNERTON ADVOCATE MONDAY, FEBRUARY 1. 1926. WAR DEBTS.

Greymouth Evening Star, 1 February 1926, Page 4

Greymouth Evening Star. AND BRUNNERTON ADVOCATE MONDAY, FEBRUARY 1. 1926. WAR DEBTS.

London Press comment on the Anglo-Italian war-debt agreement cannot be regarded as favourable, and the terms make. it easy to criticise' Mr. Churchill for being so lenient. Impartial reflection will, however, admit that the best was made of a difficult situation. Overseas dwellers are indirectly interested in these pacts, ■ as the more Britain receives in payment from her debtors, the lower will be the taxation in Britain, and the greater the spending power of her people. As the Homeland is the Dominion’s best customer, the extent of her spending power is, of course, important. Premier Mussolini has been eloquent about the high prestige of Italy, and recently he inferred that foreigners were an inferior species compared with Italians. Most nations believe that they are the best in the world, but few have so much evidence to support such claim as have the British, at Home or Overseas. Italy’s lofty ideals do not hinder her from evasion of or delay in the payment of her war debts, and where Britain is concerned, she has driven a hard bargain. In all these negotiations, Britain is at a disadvantage. Her own high standards and desire to pay what, she owes permit a creditor country like the U.S.A, to demand the .last penliy, whilst those who owe Britain large sums, are less scrupulous about repayment, and would cheerfully accept cancellation of the whole debt. Britain has been extraordinarily generous to her debtors, and it is very doubtful, if the arrangements already concluded for repayment to her' are worth their face-value. Italy, for example, has 62 years in which 'to pay annuities. What guarantee is there that these will be forthcoming over so long a period? Italy’s good faith for the present need not be doubted, but in 62 years, or half that time, much may happen In Italy, that would prevent the recent agreement being honoured. On the other hand, the United States may feel quite confident that nothing will happen in Britain to prevent a fulfilment of its long-term loan pact with the States. Another handicap to Britain in these loan negotiations is that she cannot separate foreign policy and finance,, and in making concessions to Italy in the - loan pact, an understanding was probably arrived at that will be helpful to Britain in other directions. The blunt fact has to be faced that Britain must be thankful to get. anything from her debtors, and although there is little doubt that “John Bull is being fleeced,” he must grin and bear it. The next war-loan agreement to be arranged is that with France, and it will be surprising if Britain is not again ; compelled to be generous.