ALLIED WAR DEBTS

Waikato Times, Volume 96, Issue 15034, 4 September 1922, Page 5

ALLIED WAR DEBTS

CANCELLATION SUGGESTED BRITISH AND U.S. CLAIMS. A DISTINCTION MADE. (Australian and N.Z. Cable ADm.) PARIS, September 2. M. Poincare’s reply to tlie Earl of Balfour’s note on inter-Allied indebtedness has been handed to the British Ambassador. It states that the French Government highly appreciates the noble and courteous terms cf the note, and is convinced that the reparation problem will not receive final solution unless it is linked with the problem of Allied debts. The question should be examined in all its aspects as soon as possible at a conference to which all the Allies concerned should be invited. If tiie Allied Governments had not afforded one another reciprocal financial aid out of which the war debts arose either the war would have ended badly or wc-uld have lasted longer. It was the lending countries which should have made either by their industries or by despatching large effectives the effort which the borrowing countries made in their behalf. All these debts were contracted in the interest of a common cause. As Lord Balfour excellently said, the inter-Allied debts were contracted, not for the individual benefit of any particular State, but for the great airn common to all. Such realisation would justify the cancellation of the debts.. At least it cannot be contended that it does not give these debts a character different from ordinary international debts. France, who is most affected by territorial destruction, proceeds the note, has been compelled to begin the reconstruction of her devastated provinces owing to Germany’s, promised payments not being made. It is advances Tor this purpo.se which have brought about the present instability of France’s Budget. The French Government, which only borrowed from the United States and Britain to cover her purchases and without any question of tiie security of a third party, will have to draw a distinction between war debts owed by her to these two countries. Part of the French debt 'to the United States was contracted after the armistice to cover the purchase of American stocks taken over by France, and resold for the benefit of the French Treasury. This is a commercial debt. The rest of the United States’ claims on France are similar to the other inter-Allied claims. It cannot be forgotten that the United States entered the war without its existence being dire“ctly threatened. But Britain, like France, had to safeguard not only her independence and territory, hut also life and property, and the means of existence of her people. The British claim, which has not yet been determined in' actual figures, should be subject to revision. For instance, the British QuartermasterGeneral debited all deliveries of foodstuffs and materials at the maximum price, and even added thereto departmental expenses. On the other hand, various French departments debited material to the British Army at a lower tariff without adding general costs. The French Government asks to be treated as it treats joint Allies. It does not demand the payment of sums the Allies owe it, realising that morally and materially such a demand would be inadmissable. WASHINGTON, September 2. From White House it is announced that Mr Harding is greatly pleased by the-toleration shown by the French in their acceptance of the Reparation Commission’s plan to suspend the remaining German payments in 1922. He has practically promised the active participation of the United States in a settlement of European financial and economic problems whenever European statesmen agree that such aid is most effective.