The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-02-06

press dispatches containing the speech
of Austen Chamberlain put into the rec
ord. at the same time calling attention
to the information it contained. which,
he said. was the first information or
that character the American Congress
or the American people had had
Britain the Big Gamer.
Senator Walsh (Mass.) emphasized
that fact. and both denounced the Treas
ury for failure to give such information
either verbally. orally. in letters or IN
annual reports. Senator Mcclellan gave
notice that he purposed to verify II
possible the assertions of Mr.. Chamber
lain as TO proposals for cancelling the
allied loans.
The Chamberlain admission is looked
upon by executive officials as an effort
ON the part OF the British Government
to exhibit itself in the light of an in
ternationaI altruist. 1t is understood
that Great Britain loaned considerable
money before the entrance of the United
States into the war under secret agree
ments which were political rather than
economic. and that the British Govern
ment did not then expect and does not
expect no" 10 coieSe may
debts.
ejaculation of the debts owing Great
Britain and those owing the United
States. il is maintained, would inure
solely to the advantage of Great Britain,
making her accounts about balance,
while the United States would be out
approximately 10000, 100000. In view OF
the failure to reach an agreeemnt reia-
tive to comparative naval construction,
1t is realized this would place Great
Britain in an advantageous position
While Government officials had main
tanned silence concerning the British pro-
posals, IL is acknowledged now that II
was made 1t is also stated frankly that
neither State nor Treasury Department
officials can see any reason for the can
collation. of the debt nor will they be
cajoled into accepting the allied view
point 1t is not the desire of the Ameri-
can Government ii Is stated, to press
payment of the debt beyond the con-
venience of the allied countries to pay.
nor will the payment of interest be urged
Immediately. No interest has been paid
on allied loans since May, 1919. Ameri-
can Government officials would be
willing to allow further interest payment
to go over until May. 1922, If desired by
the Allies.
England's Nest Feathered.
The suggestion made by the British
Government and advertised by Mr..
Chamberlain has had the effect of caus-
ing added Irritation among officials here
charged with settlement.
Experts here believe Great Britain alone
would be in better position to pay the en-
tire allied debt to the United States than
Germany will be able to pay her debt to
10 cix,a xf h.. 4or,f
export tax.
Government reports discussing the
matter to-day called attention to the fact
that the Allies had already taken good
care OF themselves in the way of repara-
lions. They pointed out Great Britain
to-day finds herself in possession of the
greater part of Africa; that she has
acquired the former German islands in
the Pacific south of the equator that
she has cemented her control of tae
Mediterranean and the route to India by
securing mandate for Mesopotama and
by partial control of Persia, Arabia, &c.
With this is included the exclusive ex-
ploitatiop of the potential oil fields in
Mesopotan1ia and Persia, in face of
American protest over the form of man
date secured.
France as enlarged her colonial pos
sessions, while Japan is in possession of
Shantung. of the islands of the Pacific
north of the equator and parts of Siberia
and Northern Saghalien. -
Nor does this include everything taken
over by the Allies. Approximately
81. 900, 600, 900 already has been collected
In reparations, German capital has been
taken over wherever loose in foreign
countries, the German fleet (Merchant
and pAvalD has been taken over. Ger
many's war material has been acquired,
while both France and England have
freed themselves of the dangerous COM
petition of Germany.
Piled on this II the huge. PREPARATIONS
claim, which sac approximately $780,
000. 600, 900 plus the IL per cent. export
tax which will be paid by the world at
large, the United States included, and
which leaves the German reparations as
indcterminate as ever. The Allies also
have added the condition that Germany
cannot hypothecate any of her resources
to establish loans or credits without con-
sent of the Allies. giving to them control
Of Americas trade with Germany.
Japan Sticks to Yap.
While this arrangement is in progress
Japan. 1t is pointed out is denying the
right of the United States to use the
Island OF zap as an internationalzed
Great Britain, although agreed to with
President Wilson at the Peace Confer
ence.
Secretary Houstons letter on the sub
ject, read in the Senate. said:
THE Liberty bond acts contemplated
that the Secretary of the Treasury
should negotiate an exchange Of demand
obligations of foreign governments held
by the United States for long time obli-
cations. Accordingly the negotiations to
that end, involving a postponement of
the time for payment of interest. were
undertaken. This Is all set forth in my
annual report of 1920. Such negotiations
have not been concluded, except that
during August, 1920, an arrangement
was made with the British Government
In respect Of s122,0l7.633 of it's obliga-
ton held by the United States as set
forth on page SO of my annual report
OF 1920.
Under this Arrangement sf7.633.O57
or principal. together with accrued inter
eet, has been paid; the accrued interest
on the remainder becomes due during
April and May, 1921 thereafter interest
is payable semi-annually. and the prin-
cipal becomes due In equal annual in
stalments during April and May Of the
years 1921. 1922, 1923. 1924. The nego-
tions before mentioned were conducted
almost entirely orally. There have no,
been any official proposals on the subject
that would In any way bind this Gov
eminent or the foreign governments
other than the agreement OF the foreign