New-York tribune., 1921-02-06
Senate Stirred
BY British Plea
1oCancel Loan
Statement of Chamberlain
That U. S. Had Refused
Proposal First Hint of
A lie g q Negotiations
Houston Will Drop Plan
Secretary Agrees to Leave
Adjustment of Debt to
Harding Administration

WASHINGTON, Feb. 5.-Members Of
the Senate were stirred to-day by cable
dispatches from Birmingham. England
quoting j. Austen Chamberlain, Brit
ish Chancellor of the Exchequer, as
stating that Great Britain had pyo-
posed that the inter-Allied loans be
Cancelled and that the success of the
proposal had been blocked bv refusal
OF the United States to comply.
Thls was the first information Sem
ators had of the proposal, snd although
they had before them to-day a letter
from Secretary of the Treasury Hous-
ton that he would, during his term of
ONCE, undertake no further negotia-
tons regarding the funding of the AL
lied debts to the United States. the
Secretary gave the Senator'S no inklinp
that he knew of the British pronosa1
Other officials of the Treasury De-
partment professed ignorance of anv
ofhclal proposal by Great Britain look
ing toward the cancellation of the
loans, but it was said that several in
formal intimations had come to their
attention indicating that Great Britain
would be glad to accept such a solution
of the interAllied debt problem.
Secretary Houston's letter was ad-
dressed to Senator Lodge, Republican
leader in the Senate and chairman of
the Foreign Affairs Committee.
In connection with the reading of
the letter, Senator Mcclellan, of Ten
nessee. Democrat, read the press dis
patches quoting Mr.. Chamberlain. The
disclosures caused comment by Sena-
tors Walsh, of Massachusetts, and Nc
Kellar that the American public had
never been informed by the American
government of the proposal.
81 think there is very significant,
fact brought out in that article which
does not appear in the letter of the
Secretary of the Treasury said Sena-
tor Walsh, cor in the Treasury reports.
Ihat article in the press to-day con-
talns the first information that has been
IN any way given to the American pub
l1c tnat an actual proposal was made by
debtor foreign government to cancel
cur foreign obligations.
People Entitled to Facts
1T never has appeared in any report
Of the Treasury, or even in the letter
read this morning, that any such pro-
posal or request had been presented to
our government, and it seems to me
the American people have a right to
know whether or not such proposal
was made, as claimed by the English
statesman, and, if so, why we we're
not informed of it, especially in view
OF the course pursued SO much of late
OF spreading propaganda in favor of a
rolicy in this country which some for
eign country may desire to prom ote"
yes, the Senator is right about
that" said Senator Mcclellan, "and, in
addition, it quotes the language Of Mr..
Chamberlain, giving the exact facts
and circumstances and that the pro-
posals were turned down by the Ameri-
can government This is the first in
formation of any accuracy we have had
In regard to it,"
II hope the Senator will verify the
statements made in that article" Sena-
tor Walsh said.
II shall do So" said Senator Nc.
Kellar.
Letter Refers to Refund Plan
The letter of Secretary Houston to
Senator Lodge, which Senators said
Wes Important, uoeS not fe1e" TO the
alleged proposals for cancellation of
the foreign debt, although it served to
provoke mention of that subject.
Secretary Houston in his letter said
Liberty bond acts Contemplated" ex-
change of the foreign demand obliga-
tlons for long time promises TO pay, and
that negotiations had proceeded as told
in his last annual report. In August
1920, he said, an arrangement was made
with the British "in respect of $122,-