INTERNATIONAL DEBTS.

New Zealand Herald, Volume LXI, Issue 18890, 12 December 1924, Page 11

INTERNATIONAL DEBTS.

QUESTION OF PAYMENT. BRITAIN'S POLICY STATED, EQUALITY OP TREATMENT. AMERICA AS CREDITOR. FRANCE'S NEGOTIATIONS. CHURCHILL ON THE ALERT.

Br Telegraph—Press Associat-.on— Copyright. (Received 7.5 p.iA.) A. rmd N.Z.—Keuter. ' LONDON. Dec. 10. The debate on the Address-in-Reply was resumed today in the House of Commons. In replying to Sir J. Simon, Liberal member for Yorkshire, on the subject of inter-Allied debts, the Chancellor of the Exchequer, Mr. Winston Churchill, referred to the reported financial negotiations between France and the United Stat.es. He said that, so far as the Government was aware, the matter had not advanced further than tentative inquiries and conversations. Therefore, the necessity for a formal British declaration on the subject did not arise at present. ''The Government does not wish to hinder any arrangement for mutual benefit botwe«n two friendly nations with whom Britain was allied and associated in the Great War," said the Chancellor, "hut it considers it to be essential that any payments made by our debtors in Europe to their creditors in the United Status should be accompanied simultaneously, pari passu, by proportionate payments to Britain." (Ministerial and Liberal cheers.) Proceeding, Mr. Churchill submitted that a settlement of the American debt, the advantage-: of which could not re doubted, formed the starting point in' the future treatment of the question of inter-Allied debts. The second factor in the problem was the Balfour Note, the principle of which was: "We will obliterate all debts owing to us if we are similarly treated with regard to debts owing to them; failing which we ask from Europe only as much as the United States requires from us."

Animated by Friendly Spirit. That principle, which had been expressed three years ago. before the settlement of the American debt question, still formed the foundation of British policy. Continuing, Mr; Churchill *aid there, remained the matter of German reparation payments. Under the Dawes plan, the amount receivable would increase as Germany revived, but it was impossible to say how far hopes would be realised. Any arrangement Britain sought to make with her European allies must be on such a basis as to safegard her, within the limits of the Balfour Note, from r;he consequences of a German default. These points indicated the policy which . the Government would endeavour to pursue in connection with inter-Allied debts. In that policy the Government was animated by a spirit, of the warmest comradeship toward Britain's friends, .and allies in the war. (Cheers.')

Tribute Prom Predecessor. . . Mr. Philip Snowden, who was., Chancellor of tho Exchequer.in the late. Labour Government, and Mr. W. Buncirrnn, Liberal member for Swansea, wished Mr. Churchill success at '.the conference of Allied Ministers for Finance, to be held in Paris in January. They said he would go to that conference, with the knowledge that he had the full support of the Houso in his difficult task. Mr. Churchill had a' favourable reception en this his first appearance as a Conservative Minister. His policy in regard to debts was generally endorsed in the lobby. Incidentally, the Chancellor said he was sure the meeting of Ministers in Paris next month would be animated Ly a spirit of comrr.deship and not marred by haggling or recriminations, but characterised by a sincere desire to find a pactical path.

"We have not so far pressed ar.-y of our Allied debtors to meet Iheir obligations,'' he said, "and that policy has imposed the greatest sacrifice upon the British taxpayer." *