BRITAIN’S DIFFICULTIES

New Zealand Times, Volume L, Issue 11409, 4 January 1923, Page 5

BRITAIN’S DIFFICULTIES

TAXPAYER IMPOVERISHED.

BURDEN OF AMERICAN DEBT. (Received January 3, 5.5 p.m.) PARIS, January 2. Mr Bonar Law at the conclusion of the conference, made a statement to Allied journalists. H,e emphasised the fact that -Britain made her budget position strong by impoverishing the taxpayer. The result was unemployment, which in Britain was as great a scourge as in other countries, and might cause a serious risk, unless trade developed. If Britain was financially strong she would have willingly cancelled the German and Allied debts while still paying the British debts. The present British proposals were entirely independent of America’s. If Britain received all her dues from the Allies and Germany these would not equal British indebtedness to America. At the moment it was impossible for Germany to make adequate payments because the

amount of money necessary for this purpose would be so great as to destroy the possibility of re-establishraent of German credit. It was possible to get a certain amount from Germany to-day, but not sufficient to satisfy current demands, and at tha same time enable Germany to re-establish her credit. These two objects at present were incompatible.