LLOYD GEORGE’S VIEWS

New Zealand Times, Volume L, Issue 11436, 5 February 1923, Page 6

LLOYD GEORGE’S VIEWS

“BRITAIN MEANS TO PAY WITHQTJT A MURMUR.” WILL HER ALLIES PAYP [The following and all Lloyd George articles copyright by United Press of America in all countries, copyright in Australasia by Australian Press, copyright in Britain by “Daily Chronicle.” Reproduction in full or in part prohibited.] By Telegraph.— Ptoss Assn.—Copyright. Australian and N.Z. Cable Association. LONDON, February 1. Ik his article on war debts, Mr Lloyd George says:—“As a discussion of Britain’s debt to America at the -present stage can only embarrass negotiators, I express no opinion as to the merits of the proposals or counter-pro-posals submitted at Washington, but have no doubt that agreement will he readied. “It is eminently desirable that an arrangement should be effected. The American Government has displayed a spirit of accommodation and concession which is highly gratifying to those anxious to maintain the spirit of friendship and confidence between the two greatest free communities on earth. The British Government has also ma<le a genuine effort to arrive at an arrangement in its decision to take all necessary steps to repay the debt. DEBT OF HONOUR. “We could have paid for all supplies required for our own use without resort to a loan from America. Nevertheless, the money was advanced on our credit and signature. Our credit as a nation, therefore, demands that we should pay. Whether we can collect enough from our own debtors to meet this charge becomes increasingly doubtful, as it is becoming more increasingly needful. Britain is alone in thinking that she is under any moral obligation to pay her external liabilities incurred for the effective prosecution of the war. “A LITTLE BALANCE.”

“Why have the British taken a different view from that adopted by the other Allies? I have no desire to offer censure or criticism, upon their decision. They have, no doubt, reasons for the course which (hey are adopting. A man hates reminding hie friend- at the end of a business, in which both have been engaged in warm amity, that there is a little balance to he paid np. He has been expecting his friend to mention the matter to him, hut the friend disappoints his expectations, and not a hint comes from the quarter of any realisation that there is anything due. The friend is most insistent on collecting business accounts due to himself. He is angry at delays in the payment of his own bills, hut his conscience is blind on the side of the debts which he himself owes. It is not an uncommon experience, and we are suffering through it to-day. DEBTOR AND CREDITOR. “The war has left us a creditor nation to the extent of 2000 millions, and a debtor nation for half that amount. We readily accepted an in-. v vitation from our creditor to discuss repayment, while our debtors have displayed invincible reluctance to enter into a similar discussion with us. “That ought not to influence our action. Britain is the greatest of all international traders. Her credit rests on the reputation she has well earned, rier bond is a sacred trust, which* her people always honour and redeem without counting the cost in toil and treasure. As soon as the war was over the people of Britain, with an instinctive impulse, set about restoring their warbattered credit. Government, hankers, merchants, manufacturers, and workers were of one mind: Borrowing must end. Britain must pay her way, whatever the sacrifices. Expenditure was cut down and heavy taxation imposed —taxation such as no other country arS ' PRESERVING CREDIT. “Britain means to pay the last of her debts without a murmur. Already we are reaping some of the reward. Tne purchasing value of our currency has risen, and the cost of living fallen steadily, while other countries which pursued a different policy find the cost of living ascending, month by month. A short time ago we were taunted in the French Chamber by the President of the Council that our unsound financial policy was responsible for unemployment. It is true that, had we defied our foreign creditors, instead of paying them, we might have fostered an artificial prosperity, but British credit would nave disappeared beyond recovery. “I hazard no opinion as to the percentage at which the terms of repayment to America will ultimately be fixed, but whatever the figure, the burden will be infinitely less than that indirect burden involved in large purchases with a depreciated currency. Why the debt was incurred, the circumstances under which it was entered into, and the purpose for which the money was advanced, are all matters which the American Government might well consider in arranging the terms of repayment. That is, however, their privilege. Ours is to honour our signature. A GOOD’ UNDERSTANDING OUTWEIGHS ALL ELSE. Australian and N.Z. Cable Association. LONDON, February 2. Mr Lloyd George sends out the following wireless message to the Australian Press Association: “As I roll homeward along the coast of Spain, the wireless announces that the British Government has accepted the American debt terms. “The details which I have received are not sufficient to enable me to form an opinion regarding the character of the terms, but a fraction of the percentages, however important to an overburdened people, is not comparable in value to the good understanding between these two great communities, on whose co-operation the peace, freedom, and international justice depend.”