POLAND REPAYING BRITAIN.

New Zealand Herald, Volume LXI, Issue 18891, 13 December 1924, Page 10

POLAND REPAYING BRITAIN.

A momentous event for both Britain and Poland is made known by the announcement that arrangements have been completed for repayment of the Polish debt to Britain on terms identical with those agreed upon by Britain and the United States to discharge the obligation owed by the one to the other. Though the. sum involved, £-1,500,0*30, is small as international debts go, this is the first move made by any European nation for the systematic liquidation of a debt owed Britain. The money was not advanced to Poland as a war loan, but for reconstruction purposes. That does not affect the main point, that the duty of repaying it is being faced fairly and squarely by a country not without Jmancial problems still to be solved. If the- example is taken to heart by other debtor nations, a further step may be taken in the process of facing this ].ong deferred issue of outstanding international debts. To Poland the affiiir must give satisfaction, since there is the simultaneous announcement that a flow of private capital from Britain is to begin, with good promise that industry in Poland will thereby be reinvigorated. Since they won independence, the Polish people have had to faco difficult times. Their close propinquity to Soviet Russia, and the aggressive action taken against them by the Bolsheviks from over the border, rudely interrupted the work of reconstruction, and loaded the country with a heavy burden of armies and armaments. Fortunately the horizon appears brighter now, but while the trouble lasted the finances of Poland reached a badly debilitated condition- That enemy of most European countries, inflation, reared its head. About 12 months ago a British financial expert, Mr. Hilton Young, was called in as adviser to the Government. H<- made comprehensive recommendations, including deflation of the currency, balancing of the budget, drastic measures of economy, and a more practical system of taxation. He was especially emphatic that when these reforms had been put in train, outside help must be obtained to complete the process of rehabilitation. Now apparently needed capital is being obtained, so that there is occasion for Poland to rejoice, just as Britain is entitled to feel satisfaction at the funding of the debt,