THE BRITISH DEBT.

Hawke's Bay Tribune, Volume XIII, Issue 21, 8 January 1923, Page 5

THE BRITISH DEBT.

NEGOTIATIONS FOR FUNDING. BRITISH COMMISSION’S SCHEME. Washington, 5. The British Debt Commission visited President Harding and Mr. Mellon, Secretary of the Treasury. It is understood the Commission is prepared to submit a plan calling for the funding of the debt for 50 years with interest at the rate of 3| per cent. Acceptance of this plan would require Congressional action, since funding legislation has already been passed providing that interest be not lesfe than than 41 per cent and the funding period 25 years. The American and British Commissions will hold negotiations, at which suggestions will be received, and after the British representatives report the American Commission will make a report to President Harding, who will submit it to Congress. The British representatives will confer with Mr. Hughes to-morrow. The British Debt Commission, having made known that the breakdown of the Paris Conference will necessarily reflect on the debt negotiations, Colonel Harvey and Senator Smoot, a member of the American Funding Commission. conferred on the situation. Senator Smoot is preparing an amendment to the Debt Funding Act providing for the extension of the powers of the American Commission, but he will not present it to Congress until the British Commission leaves. Senator Smoot stated that he believed the sentiment of the country favoured modification of the terms of debt funding which were fixed by congressional legislation, but sentiment among members of Congress shows considerable opposition to modification of the terms. Senator Reed introduced a resolution in the Senate, authorising the President to communicate with Britain and France regarding the transfer of their West Indian islands. in payment of war debts to the United States, the resolutions, mentions Trinidad, Bermudas. Martinique, the Lesser Antilles. and Grande-Terre and MarieGalante. in Guadeloupe.—(A. and N.Z.) The British Financial Mission to the United States includes Mr. Stanley Baldwin, Chancellor of the Exchequer, Mr. Montagu Norman, Governor of the Bank of England, and Mr. Rowe Dutton, Treasury Adviser. When the much-discussed Balfour Note was issued in August it was stated that Britain owed to the United States about 860 millions, at par exchange, together with interest since 1919. War debts, excluding interest, due to Britain at that time amounted to 3400 millions, of which Germany owed 1450 millions, Russia 610 millions, and the Allies 1300 millions. Britain was prepared, if such a policy formed part of a satisfactory international settlement, to remit all the debts due to Britain from the Allies, in respect of loans, and from Germany, in respect of reparations. But with America asking for payment of the amount due to her, Britain, with regret, felt constrained to request the respective Governments to arrange for dealing to the best of their ability with debts to Britain. Any. relief Britain secured from America would lie reflected in the demands made on the Allies for the repayment of loans granted to them.