Evening journal., 1921-07-15
BRITISH WANTED
DEBT CANCELLED
LLOYD Georges Letter to
Former Pres. Wilson
Read Into Record
LA TOILETTE FORCES
READING IN SENATE

LLOYD 1coFbts oA tAN't
a letter 10 President Wilson in Aug
ust. 1920, referred 70 suggestions
mat the interallied debts be recipro-
caiv cancelled and asked Mr. VII
sons advice "as to the best method
bv which the whole problem could
he considered and settled by the
limited states Government In con-
cert with its associates at the earliest
nossibie moment that the political
situation in America makes It pos
sible." The British chancellor OF
the exchequer six months earlier mad
cabled a British treasury official in
the United States declaring we
should welcome a general cancella-
ton OF inter governmental war
debts"
This information was given yester-
lay by treasury officials who appeared
before the Senate finance committee
considering the administration bill
TO give the secretary Of the treas
ury broad powers in refunding the
allied debts to the United States.
Assistant Secretary OF the Treas
ury Wadsworth, after questioning by
Senator La Toilette, Republican
Wisconsin and on request Of other
committee members, read into the
committee record a lengthy extract
from Premier Lloyd Georges letter
and a part OF the British chancellors
cablegram. The latter was address
I'd to r. c. Lindsay. the British treas
ury representative. and in turn re-
ferred by him informally TO r C.
I.eflingwell. then assistant secretary
Of the treasury
Mellon Makes Statement.
The two communications brought
immediate questions from members
OF the committee and a statement
from Secretary Mellon that the can
collation. suggestion had not been
preached 10 him since he assumed
office and would not be considered
II made.
The text OF the excerpt OF Premier
Lloyd Georges letter as read to the
committee follows, in part;
Il come now to the other question
! wish TO write to you about and
that is the knotty problem OF inter-
allied Indebtedness. Indeed, 1 prom
iscd Mr. Rathbone (the American
unofficial representative on the rep
arations commission) long ago that
would write to you about II, but
have had TO put it OF for one reason
and another until now.
''The British and French govern.
ments have heen discussing durinl
the last four months the question o
giving hxity and dedniteness to Ger
many's reparations obligations. Tn
British government has stood stead
ily by the view that il was vital tina
Germany's liza bilities should be fixe
at q figure which IL was within L
reasonable capacity to pay, and tbs
this figure should be fixed withol
delay because the reconstruction {
Central Europe could not begin nc
could the Allies themselves rails
money on the strength OF Germany
obligation to pay them reparation
until the liabilities exactly define,
After great difficulties with hi
own people. N. Millerand foun
himself unable to accept this vie
but he pointed ont that ii was i'm
possible for France to agree to aC
cept nothing less than Il was ent
tied to under the treaty unless Il
debts to its allies and associate
were treated in tho same way.
Ail-Around Settlement.
"This declaration appeared to n
British government eminently IA
but after careful consideration tho
came TO the conclusion that II WI
impossible 20 remit any part OF whi
was owed 10 them by France exec
as part and parcel of all-around Sc
tiement Of inter-aiiied indebtedness
7 need not 90 into the reasoi
which Jed 20 this conclusion whi'
must be- clear 70 you. But the prl
cinai reason was that the Britt
public opinion would never suppc
cne-Fided arrangement az its -.
expense. and 4 such one-slded a
rarrernfrt were made ~ could n
fan l0 eslranre and eventually 81
bitter the relations between q
American and British people. vi
caiamifouf results 40 the f1ture
the word
1e sou know. the representa-
~ me Ailes and Germany are mo
ing - Geneva in a week or TWO
corrmence discussions on tho n
iect % reparation. RECON
fhat IN The midFi ~ q president
election and with Congress not
session. is impossible for
United States to deal with this 40
ton ir q practical manner but
uperion is one ~ such imporfai
~ fhe future 81 Europe and ind,
tc relations between the allied :
aeerrIsfef rourrr thaf / should ~
rl1rr welcome any advice which
m rhf feei yourself able 70 g1ve
- r. tho besr method b. which
wnole problem could b. conside
ard settled b. The United States z
errrerf in concerr with lts az
cIaffs AZ the eariieS possible q
nent that the political situation
amer.ra makes if possible.
Funding British Debt
"a should ilke 20 make lt ~
mat this j. due 10 no reluctance
me part n Great Britain 70 fund
debt bun solely 10 the fact thai
can not bind Itself 20 any arran
ments which would prejudice
working Of any interaiiied arrau
ment which may be reached IN
future II syme method can
found for funding the British d
which does not prejudice the Lar
question. the British governu
would be glad 70 fall In with it."
The treasury officials gave no /,
mony TO show whether Mr. Wi
or the treasury replied TO the
communications and the comm