BRITAIN AND WAR DEBTS

Nelson Evening Mail, Volume LXIV, 21 February 1931, Page 3

BRITAIN AND WAR DEBTS

POSITION OF AMERICA “It is now eight years since the British Government—through what is known as the Balfour Note—explained the attitude of this country toward war debts. Tliey stated that they were prepared—if such policy formed part of a satisfactory international settlement—to remit all the debts due to Great Britain by our Allies in respect of loans, or by Germany in respect of reparations,” Barclay’s Bank review remarked recently “At- that time the aggregate amount due to Great Britain was about £3,400,000,000; on the other hand, Great Britain owed the United States about £850,000,000. The suggestion made in the Balfour Note was unfortunately not adopted, but the British Government" gave definite proof of the sincerity of their offer by a declaration on the part of Great Britain that in no circumstances would she exact payment of any greater sum from her debtors than was necessary to pay what she might owe to hef sreditors. In effect, therefore, the amount that Great Britain thus wrote off from the debts due to her was £2,550,000,000.” The debts due to the United States by 16 nations now amount to about £2,320,000,000. Britain has actually not received from her debtors sufficient to meet her payments to the United States. An official statement was recently made in the House of Commons that the total sums paid to the United States, including the instalment last December, exceed the amounts received in respect of Allied war debts and reparation by £140,000,000. The accumulated deficiency is close on £200,000,000, if interest on past payments and receipts is taken into account.”