THE WAR DEBTS

Manawatu Standard, Volume LIII, Issue 15, 15 December 1932, Page 2

THE WAR DEBTS

DISCUSSION BY COMMONS. BRITAIN STILL GREATEST CREDITOR NATION. (United Press Association —By Electric Telegraph—Copyright). Received December 15, 1.45 p.m. LONDON, Dec. 14. Continuing the debate in the House of Commons regarding the war debts to the United States, Mr \Y inston Churchill said that while an overwhelming majority of the House approved of the decision to pay, he wished the Government had taken a decision more promptly, unitedly and strongly. He attacked the Government concerning Lausanne, the results of which he described as illusive because they depended on a settlement with the United States. “We have only to think of Mr de Valera in Ireland, Mr Lang in Australia, and the Shah of Persia in order to realise that we have a considerable interest in paying our debts.” Britain should never have associated herself with France or encouraged the idea that France could be allowed to pay. the United States and not pay us. Fortunately,- the vote of the French Chamber had liberated the Government against its own errors and we were now perfectly free to start fair. He believed that the new men assuming power in the United States were animated with warm sentiments towards us as America’s best customer. To-morrow’s payment would strengthen this friendly movement. SHOULD ACT ALONE.

Sir Robert Horne agreed that Britain should act alone. Our American debt agreement was more exacting than any other. With the best will in the world towards France, we were entitled to separate consideration. He agreed that, if we were forced to pay now, we should pay in gold, but he was startled to learn that we did not intend to increase the fiduciary issue. He would like to remind Mr Chamberlain that anything of a deflationary process was entirely contrary to the Ottawa Monetary Conference’s decisions. He disagreed with Mr Chamberlain’s attacks on Lausanne, which drew Europe back from the edge of disaster and chaos. Sir Robert defended at length Mr Baldwin’s debt settlement, describing the circumstances of the Coalition period when it seemed that much more onerous terms were inevitable. “At this time of the day propaganda against Mr Baldwin is entirely unjustified and unworthy of ordinary British methods.” Ho concluded: “We are still the greatest creditor nation in the world, which owes us something like four thousand millions. This at present value is worth two thousand millions. We have a vast interest in preserving the sanctity of contracts. If Britain defaulted, advantage would be taken thereof by peoples throughout the world. We are at least buying an opportunity for negotiations whereby it is hoped for a revision of the agreement.” SENSATION CAUSED.

Mr Lloyd George at the outset caused a sensation by advancing to the table with a- dossier of papers which he admitted were the Notes of Cabinet on the debts Question in the days of the Coalition. He admitted that he was not entitled to publish the papers without the consent of the Prime Minister, who would have to consult His Majesty, though he thought it would serve a public purpose. There were a series of interjections and cries of “that is unfair” when he declared that Sir Robert Horne and Sir. Austen Chamberlain dissented from the Balbour Note. Both insisted that they only opposed the Note going to the European Powers when it was really directed to the United States. Mr Lloyd George : This only makes it imperative that the papers be published. Sir Robert Horne : I have no objection. , , , Mr Lloyd George next appealed to Mr Baldwin as Leader of the House, who said he had no objection to publication. Mr Lloyd George said the truth was that we settled in a hurry. “Britain ought to have taken the stand then that there must be a general all round settlement, including the reparations.” __ PROTEST MADE. Continuing, he protested that the British wa-s the only Parliament not permitted to take a decision on the subject. The American Congress would decide, while the French, Italian and Belgian Parliaments had all decided, but the' poor old “Mother of Parliaments” was only allowed to gibbei in a corner. Tire French chamber had decided not to default, but to say :, “You .must parley before we pay.’ It would not be repudiation for Britain to say: “There is a world cataclysm. We cannot collect the debts due to us, and we ask you to parley. We have been paying twenty-six millions yearly out of the bread of our people when others paid only one-fittli. If you are not prepared to talk to your debtors in the present emergency, we shall wait until you do.” Mr Lloyd George, recalling that President" Wilson signed the Peace Treaty in 1919, declared amid cheers: “I say that the United States by repudiation of that signature is absolutely responsible. If she had stood by her signature then, the whole story would have been- different. Throughout all the post war discussions Britain fought practically alone for fair terms. 1 begged President Wilson in 1920 to come in and wipe out the whole burden of reparations. I ask Mr Neville Chamberlain when lie pays llow to disregard pedantries which are all to please the City of London, which has too often been a curse to our trade, and to take a bold line and say: ‘This has to stop. We are the greatest creditor nation in the world in proportion to our population, and we are paying the heaviest taxation. It is to save our honour and save the peoples of the world that We must be heard.’ ”