AMERICA AND ALLIES.

New Zealand Herald, Volume LXVI, Issue 20254, 14 May 1929, Page 9

AMERICA AND ALLIES.

REPARATION CONTROVERSY

DEBT POLICY ATTACKED.

EUROPE HELD IN PAWN.

Australian and N.Z. Press Association. LONDON, May 12

Mr. Alfred G. Gardiner, a well-known Liberal publicist, in an outspoken article in the Sunday Express under the heading: "Why Should Britain be Skinned?" says:—

We have paid the United States £233,000,000 and received from our creditors in Europe £37,000,000. In the phrase of Mr. Philip Snowden, M.P., we have ' been " bilked " of nearly £200,000,000.

Mr. Owen D. Young, chief American delegate to the conference of the Committee of Experts on Reparation in Paris, has now proposed a further turn to the screw. Even at the risk of offending America, says the writer, the time has come to say we will not stand any more. Europe will be in pawn to tho United States for two generations. Germany will be ruined by the terrific levy.

Europe will not gain, for out of the total of the German payments, of £1,800,000,000 £1,300,000,000 will go to America to pay the Allied debts, and the eternal wrangle about the odd £500,000,000 will keep Europe in a state of discord.

It is a fantastic nightmare such as no sane American can imagine. Most Americans are frankly ashamed of their country's action, which is continued through fear of party recriminations. But Europe cannot be tortured for half a century for such considerations. Mr. Snowden, writing in Reynold's newspaper (recently acquired by the Labour Party), says: Mr. Young's reparation proposals in effect repudiate the Balfour Note, which proposed that Britain's reparation receipts should equal her payments to America. I have not had long to wait to have my own recent outspokenness in the House of Commons justified. All the newspapers in Britain are now supporting my protests.

Mr. A. G. Gardiner was editor of the Daily News 1902-19. He has written various biographical works, including "Prophets, Priests and Kings," "Pillars of Society," "The War Lords," and "Certain People of Importance." Another of his publications is "The Anglo-American Future." He has also written under the pen name of "Alpha of the Plough. Mr. Philip Snowden's mention of his own outspokenness in the House of Commons refers to a sensational speech he made on April 16. He said on that occasion that no more scandalous transaction had ever been made by a British Minister than the settlement of the Continental debts to Britain. Prance liad been allowed to repudiate four-fifths of her debt to Britain, notwithstanding the fact that since the war France had been the most prosperous country in Europe. The case of Italy was even worse. Britain had done for France and Italy what the United States had not done. Hie total debt ratified, agreed to or funded, amounted to £1,500,000,000,- on which the taxpayer was paying 5 per cent, interest. Mr. Churchill had communted those debts for £20,000,000 a year, while Britain was paying the United States £37,000,000 a year. The Labour Party had never subscribed to the policy of the Balfour Note (in which Britain undertook not to exact more from her debtors than she was required to pay to America). " I think it was infamous," said Mr. Snowden, "and wo hold ourselves open, if circumstances arise, to repudiate the conditions of that Note." The Chancellor interrupted Mr. Snowden to point out that the Balfour Note had embodied the agreements with France and Italy. It was a dangerous thing for a possible future Minister to use the word "repudiate" in that connection. Mr. Snowden said he did not subscribe to the doctrine that an agreement made by one Government bound every succeeding Government.