The Daily News. MONDAY, DECEMBER 15, 1924. WAR DEBTS.

Taranaki Daily News, 15 December 1924, Page 6

The Daily News. MONDAY, DECEMBER 15, 1924. WAR DEBTS.

The policy of the British Government in relation to the war debts owing by the Allies to Bri-i tain was plainly set forth in the House of Commons by the Chancellor of the Exchequer (Mr.| Winston Churchill), in a speech which was notable for its admir-; able good sense and the absence J of matter likely to cause friction. Apparently the immediate cause for dealing with the subject of < inter-Alliied war debts was the report that negotiations were proceeding between France and the United States relative to a basis for liquidating the indebtedness 1 of France. While stating that, up to the present, only tentative inquiries and conversations had taken place, Mr. Churchill took advantage of the opportunity to J place on record the policy of the Government concerning these debts. That the British Government should not wish to hinder any arrangement for mutual benefit between two. friendly nations was quite in accord with traditional policy. At the same time, the Chancellor clearly indicated it was essential that any payments made by debtor nations in Europe to their creditors in America should be accompanied simultaneously by proportionate payments to Britain. The justice of such a policy is beyond dispute, especially when it is remembered that Britain in very large measure financed her Allies during the war and that the British taxpayers have been, still are, and must continue for some indefinite time longer to bear the immense burden resulting from that financing—a burden that has severely restricted industrial operations and been responsible largely for the serious extent of unemployment there. With that characteristic exercise of selfsacrifice in all matters of this kind, Britain has given her Allies and the Dominions every consideration as to the payments of their debts to her. Obviously, sooner or later, there must be a squaring-up, and it is satisfactory to learn that the Imperial Goverment is most desirous to find a practical path whereby a settlement can be made. Meanwhile, it is only right and fair thaf. Britain shall be safeguarded against German default in paying reparations; also that the Allies’ obligations to her shall not be secondary to the discharge of their obligations to the United States, but shall at least be simultaneous and of proportionate amount to payments made to America. It seems there exists a feeling in the United States that such a policy might cause delay in a settlement between France and America. As between Britain and the United States there can be no doubt that the latter can better afford to wait for a settlement than can the former, and though America justly deserves as early a settlement as can be made as a recognition of her help in the war, yet, as compared with Britain, her financial outgoings in men and money were as nothing compared with those of the British Empire as a whole. If the United States were actuated by the same generous spirit as is Britain, there would be no question that the trend of her policy would be to see Britain paid first, especially as she is already making large annual payments to America in the process of liquidating the huge debt for which she took full responsibility because otherwise the loans to some of the Allies would not have been made. Besides this, America made enormous profits during the war, while Britain’s part was to make huge losses. Moreover, that Britain is not hard upon .her debtors is proved by the fact tliat she is willing to obliterate all debts owing to hey if she is similarly

treated with regard to debts owing by her, failing which she will be content to ask from Europe only as much as the United States requires from Britain. Unhappily, America appears to insist on her full pound of flesh. No one disputes her right so to do. but it is an act of ill grace on her part to squeal over the possibility of Britain insisting on proportionate payments by any of the Allies when liquidating their debts to America. Surely Britain has a prior and more pressing claim for priority of payment as compared with America, but even that is not claimed; only that both countries shall be treated alike in this matter. While there is no fear of serious friction arising, America would be well advised to reconsider her policy in this matter in order that a square all-round deal may be made in a spirit of goodwill and justice.