The Birmingham age-herald., 1921-07-15

office and would not be considered If made.
 Premier Lloyd George. in his let ter to President Wilson, under date of August &, 1920, wrote as follows
 Lloyd George Letter
 T come now to the other question I wish to write to you about and that is the knotty problem of inter allied indebtedness. Indeed. I prom ised Mir. Ra thbone.s s(the American un- official epresentative on the repara- tions committee,) long ago that l would write to you about it, but | have had to put 1t off for one req son and another till now.
 "The British and the French gov ernments have been discussing dur ing the last four months the ques- tion of giving fixed and definiteness to Germany's reparation obligations The British government has stood steadily by the view that it was vital that Germany's liabilities should be fixed at a figure which 1t was within the reasonable capacity to pay, and that this figure should be fixed without delay, because the re- construction of central Europe could not begin, nor could the allies them selves raise money on the SUI eu uS LII Ol tTtIIIdlN $ ObllEdAlOHS to pay them separations until their liabilities were exactly defined.
 France Accepts View
 After great difficulties with his own people, M Millerand found him self able 10 accept this view-but he pointed out that it was impossible for France to agree to accept nothing less than it was entitled to under the treaty, unless it's debts to it's allies and associated powers were treated in the same way.
 This declaration appeared to the British government eminently fair, but after careful consideration they came to tho conclusion that it was impossible to remit any part of what was owed to them by France, except as part and parcel of all around set clement of inter-allied indebtedness.
 T need not go into the reasons which led to this conclusion which must be clear to you But the prin- cipal reason that the British public opinion would never support a one sided arrangement at it's sole expense, and if such a one-sided arrangement were made, it could not fail to es- trange and eventually embitter the relations between the American and British people, with calamitous re- suits to the future of the world
 Lent Equal Amount
 You will remember that Great Britain borrowed from the United states about half as much as it's total loans to the allies. and after Ameri- ca's entry into the war, it lent to the allies almost exactly the same amount as it borrowed from the United States. Accordingly, the British gov ernment has informed the French government that it will agree to any equitable arrangement for the reduc- ton or cancellation of interallled in- debtedness. but that such arrange ment must be one that applies all around.
 As you know, the representatives of the allies and Germany are meet ing at Geneva in a week or two to commence discussion on the subject of reparation. I recognize that ;n the midst of a presidential election and with Congress not in session. 1t is impossible for the United States to deal with this question in a prac- tical manner, but the question is one of such importance to the future of Europe and, indeed, to the relations between the allies and associated powers, that 1 should very much well come any advice which you might feel yourself able to give as to the best method by which the whole problem could be considered and set tied by the United States govern ment in concert with it's associates at the earliest possible moment that the political situation in America makes it possible.
 Cannot He Bound
 There is one other point which l would like to add When the British