THE DEBTS OF OTHERS

New Zealand Times, Volume LII, Issue 12075, 28 February 1925, Page 6

THE DEBTS OF OTHERS

UNJUST BURDEN ON BRITAIN ALLIES SUBSIDISED BY 100 MILLIONS A YEAR. MR CHURCHILL REMINDED. By Telegraph.—Press Assn.—Copyright. (Sydney “Sun” Cable.) LONDON, February 26. The Federation of British Industries, in a memorandum to Mr Winston Chjircliill, Chancellor of the Exchequer, draws attention to the fact that British trade is handicapped owing to war burdens, as compared with other countries. The people of Britain are paying the equivalent of 7d in the £1 income tax on France’s debt to Britain, 6£d in the £1 on Italy’s, and o>d in the £1 on other war debts, including Russia’s. The memorandum says: —“Assuming that we are entitled to 5 per cent, for interest and sinking fund on these debts, we are subsidising France to the tupe of £31,000,000 a year, Italy £27,000,000, and the others £41,000,000. These sums represent not only an additional burden to British industry hut a corresponding lightening of the burden in the industries of these countries, whioh in many cases are in keen competition with us for the world’s markets.” The memorandum declares that the British Note to France of February Bth pushes concessions to the extreme limit, and involves permanent sacrifices of a serious character, which would justify Britain -m demanding adequate safeguards against her generosity being abused. The memorandum suggests that the debtors pledge themselves to take immediate steps to balance their budgets by increasing taxation; also to abstain from obtaining an unfair advantage to the world’s markets by a depreciation of- their currencies.