PAYMENT OF WAR DEBTS

Taranaki Daily News, 11 July 1929, Page 13

PAYMENT OF WAR DEBTS

YOUNG PLAN REVIEWED FRENCH PRIORITY POSSIBLE BRITAIN NOT COMMITTED (British Official Wireless.) Rugby, July 9. Replying to questions in the House of Commons to-day, the Chancellor of the Exchequer, the Rt. Hon. Philip Snowden, said proposals for 1 a final settlement of the reparations questions recently submitted to the British and other Governments by the committee of experts were being considered by the Government with a view to a conference with other Powers concerned. The House would realise that this country was in no . way committed to the acceptance of the recommendations of the Young committee.

Replying to another question, Mr. Snowden said that from the outset of the negotiations for the funding of the French war debt, the late Government laid down as a fundamental principle that any payment France might make to the United States Government should be accompanied simultaneously, pari passu, by a proportionate payment to Great Britain, and a reminder that this principle still held good was sent to the French Minister of Finance by Mr. Churchill last May. Questioned regarding the loss that would be entailed by Britain by reason of the departure ... from the Spa percentages recommended in the Young reports, Mr. Snowden said that they amounted,, on the average, to approximately £2,400,000 yearly. The capital value of this annual loss would depend on the interest tables selected, but applying the 54 per cent, table, which the experts themselves had utilised for their calculations, it could be estimated at The great bulk of loss would, however, begin to be incurred only after ten years. Tho report recommended that the French Government should receh. the preponderating share of the unconditional part of the German annuities, but that they should pro ride a guarantee fund amounting to £25,000,000, which would be drawn upon to make good to other creditor Powers any loss arising out of the postponement of the rest of the annuities. Provided this guarantee fund was effectively put in force, the security of the British share as compared with the French should not be appreciably impaired, so long as any postponement of Germany’s payments was limited to two years, ns contemplated in the plan, but, of course, the guarantee fund afforded no security against cessation or a longer postponement of additional annuities.

To the extent that these wore regarded is possibilities, it might be said that the effect of the Young plan was to concede priority to France and Italy. The French Government is willing to acquiesce in the inclusion of the Dominion delegates at the reparations conference, but feels that the inclusion would give Britain increased power at the conference, even though it is not held in London, says a Paris cable.