ALLIED WAR DEBTS

New Zealand Times, Volume XLIX, Issue 11306, 4 September 1922, Page 5

ALLIED WAR DEBTS

LORD BALFOUR’S NOTE NOBLE AND COURTEOUS TERMS APPRECIATED. PRESIDENT POINCARE’S REPLY. By Telegraph—Press Assn.-- Copyright. Australian, and N.Z. Cable Association. PARIS, September 1. In a reply ‘to the Balfour Note, Cabinet suggests the holding of an Allied Conference. to examine the question of debts and reparations. ONLY MEANS OF SOLUTION DEBTS CONTRACTED FOR COLLECTIVE GOOD. (Received September 3, 5.5 p.m.) PARIS, September 2. President Poincare’s reply te Lord Balfour’s Note, handed to the British Ambassador, states that the French Government highly appreciates the noble and courteous terms of the Note, and is convinced that the reparations problem will not receive final solution unless linked with the problem of Allied debts. The question should be examined, in all its aspects, as soon as possible at a conference to which all the Allies concerned should b® invited. If the Allied Governments had not afforded one another reciprocal financial aid, out of which the war debts arose, the war would have ended badly or lasted longer. It was the lending countries which should have made, either by their industries or by dispatching large effective forces, for the _ effort which the borrowing countries had made on bheir behalf. All these debts were contracted in the interest of the common cause. CANCELLATION JUSTIFIED. As Lord Balfour exoellently said, the inter-Alied debts were contracted, not for the individual, benefit of a particular State, hut for the great aim common to all. Such. realisation would justify the cancellation of the debts. At least it cannot be contended it does not give these debts a character different from ordinary internatidnal debts. France, who was most affected by territorial destruction, has been compelled to. begin the reconstruction of provinces owing to Germany’s promised payments not. being made. It was advances for this purpose which brought about the present instability of Trainee’s "Budget. The French .Government only borrowed from tbe. United States and Britain to" cover her purchases, and without any question of security the third party will have to draw a distinction between war debts, owed by her, to these two countries. AMERICA’S EXISTENCE NOT THREATENED. Part of the French debt to the United States was contracted after the Armistice to cover . the purchase of American stocks taken over/by France and resold for the . benefit of the French Treasury. This is a commercial debit. The rest of America s claims, against France, are similar to other inter-Allied claims. It cannot be forgotten that, the United .States entered the war without its exist®*?* beiijg direotly threatened; but- Britain, like Franca, had to safeguard not only her independence and territory, but also life and property, and the meanß of existence df her people. BRITAIN’S CLAIM. The British claim, which is not yet determined, in actual -figures, should be subject to revision. For instance, the British Quartermaster-General debited all deliveries of foodstuffe and material at the maximum price, and even -added thereto departmental expenses.; On the other hand, various French departments debited material to the British Army at lower tariff without, adding the general costs. The French Government aisks to he treated as it treats her joint Allies. It does not demand payment of the sums the Allies owe it, realising that morally and materially such a demand would be inadmissible. PROPOSALS BY ENGLAND. Important proposals far an adjustment of existing international debts with the objeot of stabilising world conditions, but more particularly the condition of Europe, were made by Britain. The matter was brought forward by a Note sent by Lord Balfour to France, Italy, and Belgium' respecting the payment of the debts owing by them to Great Britain. -In this Note Britain was shown to be. willing to cancel the war debts conditionally on Britain’s debt to America and the Allied debt to Britain "being considered as a Whole. Provided the cancellation was general, Britain was prepared to gp further and to abandon all her rights to reparation from. Germany. The difficulty, at present in the way of the adoption of the plan, said the Note, was Asnerioa, who had required Britain to pay the accrued interest on the Anglo-American debt, and convert it by means of. a sinking fund within a quarter of a century.