REPARATION PAYMENTS

Wanganui Chronicle, Volume 72, Issue 112, 13 May 1929, Page 7

REPARATION PAYMENTS

CLAIMS OF DOMINIONS FOREIGN CONTENTION WRONG Arguments against the foreign contention that the Balfour Note wiped out the Dominions’ claims to reparations, are advanced by the London Daily Telegraph. Another message deals with the pledging of British credit for the Allies during the world war. [Australian Press Assn.J Received May 12, 8 p.m. LONDON, May 11. Controverting unjustifiable foreign contention that the Balfour note wiped out the Dominions’ claims to reparations, the Daily Telegraph’s diplomatic correspondent points out that the Spa percentages specifically mentyyed the Empire, and the Balfour Note only Britain. Furthermore, the Dominions were separately represented at the Dawes conference of 1924-25. Also, in the memorandum of yesterday agreeing to the present conference, Mr Winston Churchill explicitly reserved the Dominions’ rights. BRITISH DELEGATE’S REPORT AIMED TO MEET ALL [ Australian Press Assn. ] Received May 12, midnight. PARIS, May 11. At a full meeting of the experts, Sir Josiah Stamp (Britain) reported progress. He explained that he was endeavouring to incorporate Dr. Schacht’s conditions and reservations with a report on Mr Owen Young’s reparations settlement, with a view to producing a text acceptable to both, creditor powers and the Germans. The next full meeting is not expected before Wednesday. The percentages plan appears to have been dropped.

BRITAIN THE SCAPEGOAT BORROWED FOR OTHER NATIONS RUGBY, May 10. The British press, which is closely watching the proceedings of the reparations experts in Paris, unanimously approves the firm tone of Mr Churchill’s House of Commons statement that “the kind of proposals foreshadowed in the newspapers would not be acceptable and His Majesty’s Government would in no circumstances entertain them.” The proposals mentioned were to the effect that practically the whole cost of the revision of German reparations payments should be borne by Great Britain by an alteration to Britain’s disadvantage of the percetnage already definitely agreed to among the creditor Powers. The first publication of the suggestions to this effect w*as greeted with a spontaneous outburst of protest by the British press, and the opinion is that this is based broadly upon the feeling that Britain has borne an excessively heavy share of the financial burdens entailed by the war, Britain in the War Great Britain made /luring the war advances to her Allies amounting to £1,600,000,000, and in order to finance her Allies she borrowed more than half that amount from the United States. Britain in 1922 funded her debt to the United States on terms which provided for full repayment in 62 years, with back interest from June. 1919, capitalised at 4| per cent., and interest from the date of the funding at 3 per cent, for ten years and 3A per cent, thereafter. The amounts due to her were far in excess of her debt due to the United States, but the Balfour Note of August, 1922, summed up the British policy on the question in the following sentences: “The policy favoured by His Majesty’s Government is that of surrendering their share of German reparations and writing off, through one great transaction, the whole body of inter-Allied indebtedness, but if this be found impossible of accomplishment we wish it to be understood that we do not in any event desire to make a profit out of any less satisfactory arrangement. In no circumstances do we propose to ask more from our creditors and while we do not ask for more, all will admit we can hardly be content with less, for it should not be forgotten, though it sometimes is, that our liabilities were incurred for others .and not for ourselves. Food, raw material, and munitions required by the immense naval and military efforts of Great Britain, and half of the £2,000,000,000 advanced to the Allies were provided, not by means of foreign loans, but by internal borrowing and war taxation. Unfortunately a similar Rolicy was beyond the power of other European nations. An appeal was therefore made to the Government of the United States, and under an arrangement then arrived at the United States insisted, in substance if not in form, that though our Allies were to spend the money it was only on our security that they were prepared to lend it. This co-operativo effort was of infinite value of the common cause, but it cannot be said that the role assigned to this country was one of special privilege or advantage.” Most Heavily Taxed The sacrifices which this policy entails are reflected in the fact that Britain is the most heavily taxed nation, and among all parties it is insisted that the cost of any further alleviation allowed to Germany must not fall upon Britain alone, but must be shared proportionately by all the creditor nations.