The New York herald., 1921-05-15
BRITISH WAR DEBT
NEGOTIATIONS BEGIN
Plan for Funding Nearly
Five Billions Held Here
Being Considered.
I GEDDES In CONFERENCE
Arrangements With Other
Allies Who Owe Money to
Be Made Separately.
AVOIDS GERMAN BONDS
Treasury Ready to Accept
Long Term Notes Maturing
With Liberty Bonds.
GEDDES IN CONFERENCE
AVOIDS GERMAN BONDS
Special Despatch to THE NEW York HERALD.
New York Herald Bureau,

Special Despatch to THE NEW York HERALD.
New York Herald Bureau,
Washington. ID. c., May IA.
Renewed negotiations for permanent
funding OF the British war debt to the
United states aggregating nearly
$4,000. 600, 600 have been undertaken
by sir Auckland Geddes, the British
Ambassador, with representatives of
the State and Treasury Departments.
A number of conferences have been
held in Washington in the last day or
two and the way smoothed for actual
arrangement of the financial details
involved in the refnnding plan.
The Treasury Department is ready
to accept long term British treasury
notes or other obligations of the Brit
ish Government with maturities ap-
proximating those of the American
Liberty loans for the present short
term notes secured by British COM
mercial and other paper.
The refunding operation undertaking
United States and 1t is understood thai
loans and advances to others of the
Allies aggregating $500, 100000 will not
be involved with the negotiations with
British representatives.
Secretary of the Treasury Mellon and
the new Treasury administration have
not changed the previously announced
policy inaugurated by Secretaries Glass
and Houston of treating with the Allies
individually and keeping away from any
general credit arrangement that would
further involve the United States in Eu-
ropean finance.
To Drop Wilson Negotiations.
Negotiations so far held have been
preliminary and did not go into the ac-
tual details of any refunding plan. They
were largely diplomatic. but they cleared
away the formaIties of negotiation and
agreement and paved the way for speedy
settlement OF the questions involved
which have been hanging fire for more
than a year.
Discussions and negotiations begun by
the Wilson Administration for refundng
the allied notes in the United States
were dropped last fall when 1t became
apparent Lney COuld not De coHSuil-
mated before the Administration
changed There have since been changes
In the British Ministry that made an
entirely new start advisable. and this
course has been agreed to. Past corre-
spondence discussions and negotiations
will be dropped. II is understood such
course was agreed upon by the British
Ambassador, and State and Treasury De-
partment representatives reviewed the
1axs dart talF 4
save as much time as possible.
The British Government IL Is under
stood. will send a financial representa-
tive to deal directly with the Treasury
Department upon the actual details TO be
arranged. The transaction will, of course.
20 through the State Department when
Treasury representatives, have drawn up
the form of agreement.
Action Unexpected Here.
Undertaking of negotiations with
Great Britain at this time came as
complete surprise. Secretary Mellon had
stated several times that the Treasury
Department was ready to proceed with
refunding negotiations. b41 u was gener-
ally understood that the matter waited
on the State Department, and the Ad-
lninistration had determined not to press
Great Britain and France at this time
while they had so many pressing prob
lems at home. The British Ministry was
submerged in reparation negotiations and
with many internal difficulties. including
Industrial warfare started by the coal
strike there
Action at this time was apparently
initiated BY the British Government
although this fact could not be defi-
nitely learned. Several months ago the
British Government designated Min
lister TO come TO Washington. but his
eIsa aN...Wa H.
off by the tmminence OF a change in
Administration here with the possibility
OF some change In policy even though the
Republican Senate and House had taken
an emphatic stand against further loans
and advances to allied Powers and
against involvement in European fl
nance i'm any settlement that was to be
made.
Renewed negotiations followed quickly
upon settlement of the German repara-
tion ISSUE, and II now seems assured
that all Of the allied Indebtedness TO
this country will be arranged on a per.
manent basis.
German Bonds Not Favored.
There has been talk in France of Ise
of German reparation bonds for settle
msnt with this country or the French
Indebtedness. But such a proposal prob
ably viii not meet with any favorable
response here because IL would In IN
indirect way involve the United States
II collection Of reparatons from Ger.
many
81 FAR AS could he learned to-day no
action has been taken for refundinr
nesotiatlons with France. but the xvav
Tor such action would seem 10 be cleared
BY The settlement Of German reparatiop
y = known here that France counts 10 4
lsfee extent on payments from GERMANY
70 meet her obligations TO this country.
Actual cash advanced to the Allies
less total cash refunds made. now stand
at $3.50 2s.s7 or this sum BELGIUM
owes SA9, 2l4.461, Cuba, si0o00,O00: Czecbo-
slovakla, SCI 256, ,208; France, 81. .aa,. an 900.
Great Britain. S4277. 900 600; Greece. sfs
100000: Italy. 81. 63l 33s. .9Ss: Liberia. s2s on
Rumania, $500. 900. Russia, sls1 IN 750
and Serbia 500, $50 45s
There is In addition due from those
countries s6s3 ,3aa57T accrued and unnaid
interest. Great Britain owes $500 90 oOO
Of this back interest, and France nearly
an equal sum More than half a billion
dollars has been paid In interest.
RESEMBLES GANBRrNus
pYNw III tYrr Al. ~ -