New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-15
Britain Asked
Canoeing of
Allied Debts

tcoRtinued from page ous)
which led to this conclusion. which
must be clear to you But the princinal
reason was that British public opinion
would never support a one-sided ar
rangement at it's sole expense, and if
such one-sided arrangement were made
1T could not fail to estrange and even
tually embitter the relations between
the American and British people, with
calamitous results to the future of the
world.
"You will remember that Great Brit
ain borrowed from the United States
about half as much as it's total loans to
the Allies, and after Americas entry
into the war it lent to the Allies aim ost
exactly the same amount as it borrowed
from the United States ACCORDINGLY
the British government has informed
the French government that it will
agree Go any equitable arrangement for
the reduction or cancellation of inter
Allied Indebtedness, but that such ar
rangement must be one that applies all
around.
GAS you know, the representatives of
the Allies and Germany are meeting at
Geneva In week or two to commence
discussions on the subject of repara-
tion. / recognize that in the midst of
Il Presidential election and with Con-
gress not in session it is impossible
for the United States to deal with this
question in practical manner, but the
question is one Of such Importance to
the future of Europe and, indeed. to
the relations between the Allied and
associated powers that l should very
much welcome any advice which you
might feel yourself able to give me as
to the best method by which the whole
problem could be considered and set
tied by the United States government
In concert with it's associates at the
EARLIEST possible moment that the po-
litical situation in America makes it
possible.
Halted Negotiations
"There is one other point which /
would like to add. When the British
government decided that it could not
deal with the question of the debts
owed to it by it's allies except as part
and parcel of an all around arrange
ment of inter-Allied debts, the Chan
cellor of Exchequer told Mr.. Rathbone
that he could not proceed any further
with the negotiations which they had
been conducting together with regard
to the postponment of interest on the
funding of Great Britain's debt to
America.
~ should like to make it plain that
this is due to no reluctance on the
part of Great Britain to fund it's debt,
but solely to the fact that it cannot
bind itself by any arrangement which
would prejudice the working of any
lnter-Allied arrangement which may
be reached in the future. If some
method can be. found for funding the
British debt which does not pre- JUDGE
the larger question the British govern
ment would be glad to fall in with it,
Secretary Mellon indicated the Brit
lsh proposals had not met with the
favor of this government. He held that
cancellation of the debts was out of the
question. although he indicated that
arrangem ents would be made to allow
suitable time for repayments
The testimony of Secretary Mellon
was delayed by discussion between
members of the committee as to max
ing public the secret correspondence on
the foreign loans which was furnished
the Judiciary Committee of the Senate
by former Secretary of the Treasury
Houston at the close of the last Admin
rStration.
The committee finally decided to ask
the Judiciary Committee for the cor
Tespondence and Secretary Mellon
agreed to have Treasury expert index
it for the use of the committee.
In response to questions by members
of the committee, especially by Sena-
tor Reed, Secretary Mellon said no,
another dollar would go out of this
country in foreign loans. The Secre-