Arizona republican., 1921-02-05
SAYS PROPOSAL TO CANCEL WAR DEBT DECLINED
 BY J. {. GOv' I
British Chancellor Of The Exchequer Says Sue h Proposal Made By Eng land But Was Refused
Republican A. p. Leased WireJ


 BIRMINGHAM, England, Feb. A. The British government formally pro posed a cancellation of all inter allied debts. but the proposals were un- acceptable to the American govern ment, said Sir Austin Chamberlain in a speech to his constituents here today
 ITO make them again." MT. Cham oerlain continued. would be, I think. beneath our dignity, and would render us liable to miSconception of our motive"
 ''In making them" he added, i've sought no national advantage for our selves. We proposed a solution in which we should have foregone claims larger than any remitted to us, and we proposed it because we believed it would be in the interests of good re- lations amongst peoples, the rehabilita- ton of national credit and the restora- ton of international trade.
 Our great international debt is due to the obligations we undertook on ourselves to consider. we should have been practically free of external debt at the present time"
 Treasury Officials Silent
 WASHINGTON, Feb. 4.-Treasury officials refused to comment tonight on the statement of the British chancellor of the exchequer, J. A. Chamberlain,
  fused to accept British proposals that the inter allied debts arising from the world war be cancelled.
 No mention has ever been made in official circles here of any proposal of ficially rendered by Great Britain for cancellations of the inter-a1lied debts, but it was recalled tonight that Sir George Paish, the British financial ex- pert who visited the United States a year ago. put forward some such pro- posal His mission was not regarded as official and consequently his pro- posal did not receive official consid- eration.
 Great Britains indebtedness of about $4.000, 100000 is far larger than that of any other of the allied coun- tries but this is explained by the fact that Great Britain herself was a creditor country and disbursed Ameri- can funds to her other allies.
 When Senator Knox of Pennsylvania, soon after President Wilson's return from Paris introduced in the senate a resolution proposing a remission of the indebtedness of all the allied gov ernments to the United States on the theory that the allies had been greater sufferers from the war, British public opinion as interpreted here was quickly recorded as declining to accept any such remission. So far as is known American officials are advised that such is still the position of the British government, although that government I had let it be known that it would accept suspension for few years of the collection of interests on its 1 indebtedness to this country. l It is the expectation here, however 1 that when Ambassador Geddes returns about the end of the present month | from his sudden trip to England, he will be accompanied by Lord Chalmers It is also understood that they will | be charged with full authority to ne gotiate with American treasury off, cials for a conversion of the present British indebtedness, which now stands 1 in the form of demand notes, into long time. permanent obligations at a rate of interest corresponding to that se' forth in the liberty loan issues.