Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-07-15
TEXT OF BRITISH
NOTES ON DEBTS
OF ALLIES READ
CONTINUED from Page one.)

1t was entitled to under the, treaty
unless its debts to its allies and
associates were treated in the
same way.
"rhis declaration appeared to
the Bsitish government eminently
fair, bat after careful considera-
ton, tEey came to the conclusion
that IL was impossible to remit
any part Of what was owed to
them by France except as part and
parcel of all around settlement
Of inter-allied Indebtedness.
II need not go into the reasons
which led to this conclusion which
must be clear to you. But the prin-
cipal reason was that the British
public opinion would never sup
port q one-sided arrangement were
made it could not fail to estrange
and eventually embitter the rela-
tons between the American and
British people, with calamitous re-
suits to the future of the world.
you will remember that Great
Britain borrowed from the United
States about half as much as its
total loans to the allies and after
Americas entry into the war it lent
to the allies almost exactly the
same amount as it borrowed from
the United States. Accordingly,
the British government has in
formed the French government
that it will agree to any equitable
arrangement for the reduction or
cancellation of inter-allied indebt-
edness but that such arrangement
must be one that applies all around.
"As you know the representa-
tives of the allies and Germany
are meeting at Geneva in, a week
9pr two to commence discussion on
The subject of PREPARATION. rec
ognize that in the midst of a presi-
dental election and with congress
not in session. it is impossible for
the United States to deal with this
question in a practical manner, but
the question is one Of such i'm
portance to the future of Europe
and indeed to the relations between
the allied and associated powers
that | 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
settled by the United States gov
eminent in concert with its asso-
ciates at the earliest possible mo-
ment that the political situation in
America makes it possible.
"There is one other point which
would like to add. When the
British government decided that 1t
could not deal with the question OF
the debts owed to 1t by its allies
except as part and parcel of an all
round arrangement of inter-allied
debts. the chancellor 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 postponement of interest on the
funding of Great Britain's debt TO
America.
81 should like to make it plain
that this is due to no reluctance
on the part of Great Britain 10
fund its debt, but solely TO the 1act
that it cannot bind itself by any
ARRANGEMENT which would prelu-
dice the working Of any inter-aiiied
which may be reach
ed in the future. If some method
can be found for funding the Brit
ish debt which does not prejudice
the larger question, the British
government would be glad to fall
in with it,"
The British chancellor of the
exchequer in his cablegram pre-
sented informally to Secretary Lef-
fingwell by Mr.. Lindsay, under
date of February 20. 1920.
Turning to the more genera
considerations 1t is evident that a
financial crisis in America would
greatly endanger the incipient re-
covery of continental Europe. 1t is
impossible to foresee the conse-
ouences. With the continent
prey to bankruptcy and anarchy
and the United States unable to
provide credits of any sort owing to
the internal crisis, the worlds pc.
sition would be indeed serious. IL
| may venture on what fear is
controversial ground, l may say
that 1t is largely because of those
dangers that we should welcome d
general cancellation Of intercov..
ernmental war debts. The moral
effect would even be a greater
practical change, and fresh hope
and confidence would spring up
everywhere.
"The existence of those interna-
tional debts deter neutrals from
giving assistance, checks private
credits and will, fear, prove a dis
turbing factor in future interna-
tional relations"
The treasury officials gave no
testimony to show whether Mr..
Wilson or the treasury replied TO
the two communications and the
committee adjourned until tomor-
row after asking that treasury
documents relattVe To America