WAR DEBTS

Hawera Star, Volume XLV, 28 August 1925, Page 5

WAR DEBTS

BRITAIN’S OFFER TO FRANCE.

ASTONISHAIENT IN IT.S.A

MAY AFFECT THEIR TERMS. BY CABLE—PRES-S ASSOCIATION—COPYRIGHT Received Aug. 28, 10.15 a.m. LONDON, Aug. 27. American circles are astonished and concerned at the British offer, believing AI. Caillaux will attempt to obtain the same favourable terms from Washington. and point out that America is not willing to accapt less than 3 V per cent., while the British arrangement amounts to two per cent. AI. Caillaux considers that any arrangement with Britain is worthless without the stipulation providing for the suspension of annuities, if they threaten* to disturb the exchanges, nor should France have to pay the Allies collectively more than she receives from Germany. —Sydney Sun Cable. COALMEN!' IN ENGLAND. LONDON, Aug. 27. An official statement announces that the Government has autnorised Air Winston Churchill (Chancellor of tne Exchequer) to finally offer a settlement or the French war debt to Britain on tne basis of annual payments of £12,500,000 spread over 62 years. AI. Cadlaux (French Alinister for Finance) reserved opinion, anti has promised to submit the proposals to tne French Government. Air Churchill, commenting on the official statement embodying the offer, said the negotiations had not been broken off. AI. Caillaux, in a statement, says Air Churchill agreed to concede a partial moratorium until 1930, but he only partly accepted the French demand, a stipulation which AI. Caillaux expressed the opinion was essential to an arrangement. The transfer of annual payments should be suspended in tne'event of their threatening to disturb exchanges. M. Caillaux also expressed the opinion that guarantees should be given France that she will in no way nave to pay Allied and associated Powers higher sums than she received from Germany. He remarked that the conversations had merely been interrupted. It was undoubted that a final arrangement would be reached. ’Hie tennis of tihe British offer caused surprise and evoked a sharp division ot opinion among the London Press. Even tne approval is confined rather to satisfaction at tlie good understanding than to -actual figures. The only unqualified enthusiasm emanates from AI. vjailOaux, whom political correspondents Variously describe as delighted and almost chortling. It required two Cabinet meetings to evolve the offer. It is significant that long conversations between Air. Austen Chamberlain (Alinister for Foreign Affairs) and the United abates Ambassador (Air. Alonzo Houghton) preceded the first, while between tlie first and ijeoond Aljr Churchill had a lengthy conference with AI. CJaliillaux, who received an unexpected summons by telephone. The diplomatic correspondent of the Daily Telegraph says the danger is that 'America wall miisicomistrue the offer intoa joint attempt to place her in an invidious position if ishe should decline to revise her settlements with Britaiti -and Belgium in accordance with the present Anglo-French conditions, indeed, should America insist on a standard rate of 3=l per cent, interest on the French debt, tlie position created would be especially embarrassing for the British Government-, which would bo bound \o rtii-se the present 2 .per cent, to 31 per cent at the risk of amusing clamour and indignation in France. Viewed in this light, the provisional agreement does not strike one as either diplomatic i>r advantageous to Britain. American Girdles lalsfc night certainly inclined to resent the stipulations agreed to by Air. Churchill and AI. Caillaux. It is understood that the parti all moratorium relates to a. series of small graduated annuities, starting at £2,000,000 to £3,000,000. , The Morning Post emphasise© that a settlement is still contingent on the attitude of the United States, but though no conclusion had been reached, it must be recognised that the whole situation has changed lor tlie better. The Daily Telegraph makes no comment. The Daily News expresses the opinion that the Government took the right course. This does not obscure the fact that no debtor in the. world’s history has ever been so well! treated. The Times, saying that a (settlement is in .sight, expressed no direct opinion on the amount of the offer, but stresses the importance of maintaining that any relatively larger payments to America shall be accompanied by similar payments to Britain. Wo have gotten reckon on the possibility of finding ourselves i n receipt of less than is required to lueet our payments to America when the importance of the settlements has affected other debtors. It is difficult to avoid the conclusion that political rather than financial considerations weighed heavily with the Government in order to dispose of a difficult question. . The Daily Express says Air Baldwin a settlement with Ainericia is a grave and expensive blunder. This new isuriender is a crying instance of financial weakness, which is hardly credible. The nation cannot- afford sacrifices.

OPINION IN U.S.A

MAY AFFECT AMERICAN SETTLEMENTS.

WASHINGTON, Aug. 26. The developments in the foreign debt situation aie regarded by observers here as likely to seriously com. plicate the forthcoming negotiations for the funding of the debts of France and Italv to the United States. While officials are loath to discuss the problem disclosed to-day, it is plainly evident that they expect France to bring pressure for terms with the United States similar to those granted by Great Britain. France, it is learned on official authority, will be told that she owes the United States more than she owes Britain, and that the annual payments must he greater. Another phase of the situation attracts attention. It is reported that there is apparently certain to be delay SETTLEMENT WITH GREECE. AGREEMENT TO BE SIGNED. Received Aug. 28. 10.15 a.m. ATHENS, Aug. 2/. The Government has cabled, to ■ the Greek Minister at London giving mm definite .authority to sign the. agreement for the settlement of the Greek war debt. —A. and N.Z. Assn.

by the Belgians in taking Parliamentary action on the funding pact with the United States. The delay is not fatal to the agreement, but it is suggested that if an earlier ratification by Belgium is possible, the atmosphere as it surrounds similar action by Congress- and bears on the French and Italian negotiations here would he materially cleared.