THE WAR DEBTS.

Manawatu Standard, Volume LIII, Issue 136, 9 May 1933, Page 6

THE WAR DEBTS.

Tiie statements made by the British Prime Minister since his return from the United States make it clear that the war debts—“a hard nut still uncracked”— though not actually a matter for decision at the World Economic and Monetary Conference, must lie settled in conjunction with this gathering of the nations. “The Conference will fail,” Mr MacDonald said, “unless the debts are settled as early as possible—certainty before the termination of the Conference. President Roosevelt and myself are agreed upon that.” The Prime Minister’s statement shows that information upon the subject only was exchanged. For the. rest it is vexatiously vague as to how the problem is to be solved, what steps are to be taken, and when. The Preparatory Commission of Experts that drew up the annotated agenda for the World Conference could not include war debts in its programme of reconstruction, as the subject was beyond its order of reference. It spoke with conviction and to the point on the question, however. “Until there is a settlement, or the definite prospect of a settlement,” it said, “these debts will remain an insuperable barrier to economic and financial reconstruction. We therefore attach the greatest importance to the early resumption and successful conclusion of negotiations upon this problem.” All the evidence on the subject bears upon the paramount need for an early settlement, and in the absence of definite information it may be that Sir Ronald Lindsay will pursue the matter with Washington. His conversations with Mr Roosevelt and other members of Cabinet have been of considerable importance, and he lias shown marked ability in dealing with this difficult matter. Moreover, a settlement between Great Britain and the United States would have a tremendous influence upon world affairs. The Chancellor of the Exchequer has said that two points are essential in a settlement—it must be final, and _it must be one which will not involve a resumption of the claim on Germany for reparations, which it was the object of the Lausanne settlement last year to end. Mr Chamberlain has also submitted figures to the House of Commons showing that the total British payments to the United States amount to £355,200,000, while Britain’s receipts^from foreign war debts are £71,100,000 and from reparations £121,300,000, a grand total of £192,400,000. The position at present is that, by the supplementary agreement at Lausanne among the reparation creditors, Britain practically waived any payments from her debtors until the Lausanne agreement is ratified. This is dependent upon a satisfactory settlement with the United States. British opinion is rightly emphatic that the present position cannot continue; the United States from the Atlantic to the Pacific must be brought to realise this.