The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-10

| debt redemption. He gave the assurance
| that the external debt would be repaid
before the internal funded debt AND
promised the repayment of 80 million
pounds sterling of the foreign debt this
! year.
Assurances of the repayment Of the
external loans was not the only phase
of the debate OF particular interest to
America. Mr.. Lambert. in moving his
resolution. asked whether the Govern
ment intended to compete with America
in naval building. Although neither the
Premier nor Mr.. Chamberlain replied to
this, several Government speakers al
luded to the suggestion of competition
with America as absurd.
Furthermore no speaker mentioned
the League of Nations as entering into
the calculations. Premier Lloyd George
and Mr.. Chamberlain both cited
the imperial obligations in the Near
East and Mr.. Lloyd George alluded to
the Mesopotamian mandate as one
which would eventually prove very
profitable to England but In SO far AS
the covenant being able to aid Great
Britain in reducing her naval and mill
tary expenditures not word was SAID
Premier Lloyd George stated further
more that every country in the world
despite the League OF Natons-had In
creased it's budget more than had
Great Britain. He gave the following
comparisons of to-day and before the
war: Italy, nine times; America. nine
times, and France. ten times. while
Great Britain was the only country In
Europe except Denmark which was
paving her own way to-day. He pro-
tested against attempts to cut down
educational appropriations, asserting
that the starving of teachers is re-
sponsble for the Sim F'ein in ireland
to-day, and we do not want the growth
of any such doctrines here.
Mr.. Chamberlain, citing supplement
tary estimates TO meet the unexpected
costs Of the present year. admitted that
the Near East had cost Great Britain
sixteen million pounds sterling and Ire
land more than two million pounds. He
asserted that the repayment OF eighty
six million pounds of the foreign debt
had already moved important South
American and Scandinavian exchanges
In Great Britains favor. but he deplored
there had not been the same results
achieved in the United Stataes.
| He gave the general principle OF the
view in making UP the budget as
| heavy taxation as a result OF the war,
| the high cost of material. the trade
reaction that has set in and the emer-
gency measures required to meet I'M
employment THAT followed" He said
| that there were no fresh expenditures
| for any scheme not already in actual
| operation that the Government was
| winding UP Ministries like that of Mu-
nitions, Shipping and Food.
1.-THE Cabinet is convinced of the ne
| cessity of curtailing military expendi
| lures to the utmost extent compatible
with our imperial obligations and the
+, national safety" he said.
Mr.. Chamberlain added that the Near
! East was the principal field for econo
my and that the situation there was be-
! ing explored, with a view to making
| further drastic reductions that Persia
had been notified that the last British
forces there would be withdrawn mex
spring and that the forces in Palestine
were already being Withdrawn, while II
| Mesopotamia the forces had been re
duced from 100000 men at the time oil
the armistice TO 10000 last June, though
they had been heavily increased in view
of the rebellion there.
! Regarding the naval programme he
| said: while determined to maintain
the navy at a standard of strength ade.
quate TO secure the safety of the em.
pire and its maritime communications
the Cabinet, before sanctioning a pro
gramme for new construction. wat
bound to satisfy itself that the lesson:
lof the war had been definitely ascer.
tained more particularly as regards the
place and usefulness Of capital ships II
| future naval operations"