The New York herald., 1922-08-04
RECOGNIZES CLAIM
Chancellor of the Ex-
chequer Backs Up
Statement in
Commons.
DISCUSS PREPARATIONS
Premier Says Country Must
Compromise or Break
With Allies.
WILL WELCOME POINCARE
Glad to Hear Program but
Opposes Pushing Germany
Too Far.

Special Gable to THE NEW YORK HERALD.
Copyright, 1929, BIZ THE NEW YORK HERALD.
New York Herald Bureau,
London, Aug. 3.
Prime Minister Lloyd George and
Chancellor of the Exchequer Sir Rob-
ert S. Horne, tonight in the House OF
Commons, said that Great Britain had
no intention of suggesting any altera-
ton of her financial obligations to the
United States. They emphasized thai
the British Government recognized 10
the full Great Britain's obligation to
pay that debt, and Sir Robert specifi-
cally stated: 1--WE do not mean in any
shape or form to evade that obliga-
ton"
The Prime Minister, who spoke af-
ter Herbert Asquith and Josiah c.
Wedgwood. Laborite, had criticized the
Government and expressed misgivings
as TO the wisdom of the Balfour note,
asserted that Great Britain was un-
able TO ignore her allies in the pur-
suance of any given policy. In this re-
spect II was imperative either 10 COM
promise or break with them.
Referring to Germany. Mr.. Lloyd
George said that II would not do to
underestimate her capacity TO pay.
Germany. like the rest OF the world
was suffering from a bad trade situa-
ton. IT was impossible TO predict.
what would happen when the world
1a1 - . \.
war. and IL must not be forgotten that
Germany was without an internal debt,
while Great Britain had enormous In
ternal and external debts.
Referring to the coming conferences
with Premier Poincare' of France, Mr..
Lloyd George expressed satisfaction
that the French Premier would have
proposals to submit at the conference.
He pointed out that II Germany were
pressed too hard she might be driven
to desperation, and whether she turned
toward the reactionaries or the Com
munists made little difference. as It
would mean great trouble for the rest
OF the world
Has Hope I'm Conference.
The Prime Minister had hopes in the
conference. but he did not expect It
would settle the increasingly difficult
situation in Germany The world must
Judge Germany's capacity to pay by the
wealth she could send across her bor-
ders and not by a lump sum. a revision
of the German reparations payments.
he said. would not be n violation of tho
Treaty OF Versailles. He made IL plain,
however. that this problem would not
be solved at the expense of Great Brit
ain and of the British taxpayer, who
already was bearing acgreater burden
than any other taxpayers in the world.
we viii give fairness to Germany ana
justice 10 France. but justice means
also Justice to the people of our own
land he said.
The opposition chided him bitterly
over the failure Of the Balfour note a.
an attempt to begiile the United states
into forgiving Britain's deb<. But thu
Prime Minister and other speakers TO-
the Governments generally refrained from
making answer to Mr.. Asuuith's ana
Mr.. Wedgwood's references to the UnItog
States.
With NJ. Poincare arriving Sunday
official circles profess 10 see already =
benefit In enunciating the British posi-
ton through the Balfour note in un-
mistakaole terms. They say that M
Poincare already has modified the plan
he expected to bring to England T-hev
believe with Lord Balfour that the note
az basis for the reparations confer
ence VIII be effective in producing a
FAR more reasonable attitude on the
part of France
But the opposition already has taken
up the gauge OF political exigencies mn
der which the note was issued. and Mr.
Asquith's speech. with Mr.. Lloyd
Geofge's answer. has revived talk OF a
general election this autumn The Gov
ernment apparently is undisturbed ara
confident OF the notes good effect when
the Premiers assemble on Sunday.
Lloyd Georges speech.
Mr.. Lloyd Georges speech IN FUN
follows:
II should have been able 10 rest the
case for the British Empire upon thc
very able speech made by the Chancellor
Of the Fxchequer. but there have been
two or three things said In the course
OF the debate which I think II would bs
inadvisabie TO allow to pass without
some correction.
II was frankly disappointed By the
speech OF the member from Paisley
Mr.. Asquith. II was not a very help
ful speech In very serious situation
l. Is all very we'll for the right honor
able gentlemen TO say ne appreciates
the point ~ view OF France. and undcr-
stood the point Of view of Germany and
America but -pne point he didn't seonk