Evening star., 1922-08-03
i. s. DEBTS POLICY
IS NOT AFFECTED
BY YBR|TA|N'S NOTE
Official Treasury Statement
Says Program for CoIIec.
ton of Loans Is Fixed.
MONEYS OWED AMERICA
CONSIDERED SEPARATE
No Cognizance May Be Taken OF
Balfour Paper by State
Department.

Great Britain's note to her debtor
nations suggesting cancellation OF
the whole interallied Indebtedness
will cause no change in the policy
of the United States toward its for
eign debts. it was stated omcially
today at the Treasury.
Secretary Mellon was represented
as taking the position that tho Amer
ican debt commission must continue
negotiations for funding tho obliga-
tions owed this country without re-
gard to the disposition evidenced by
Great Britain to wipe out interna-
tional wartime Indebtedness.
Moreover. Mr.. Mellon was under
stood to feel that inasmuch as Great
Britain in correspondence with the
Treasury had acknowledged Eng
lands war debt to the United States
date the debt with interest and had
announced the sending of a financial
mission in September to discuss ar
rangements for payment there should
be no hitch in the proceedings. Also.
according to the Treasury view.
British statesmen in parliament have
repeatedly described the American
debt as an obligation to be met.
No L. $. Reply Called For.
While to a certain extent the Brit
ish note was regarded by the Treas
ury as making more difficult an al
ready complicated international finan-
cial situation. it was not considered
as affecting the position OF the
United States toward foreign debtor
nations.
AS the note was not addressed to
said, to hold the view that no Of
fetal cognizance of Its Transmission
would be taken by this country. The
generally Interpreted suggestion of
cancellation of interallied indebted
ness contained in the note also was
the nature of proposal to the United
States
On the abstract question of cancel
lation. however. Mr.. Mellon was de-
clared to have very definite views as
to the udesirability of such a pro-
United States. While European ma
tions might wire out each others
debts. the United States, owing no
one. would receive no compensation
for relinquishing its foreign obliga-
tions.
government in sending its note. it
was said at the Treasury. may not
yet be apparent. although sugges-
tions were made that there may have
been a desire to bring the question
of cancellation to the front before
premiers in London or to make plain
an attitude by the British govern
ment that if payment must be MADE
by England payments must be de-
manded in turn. England's willing
ness to lessen her share Of German
Treasury officials 1ndi-
Gated, might be taken as revealing a
desire to strengthen the British
world trade position through en-
hancing German commercial oppor-
tunities.
Debt Reduction Forecast.
A lessening of German reparation
payments to France was regarded at
the Treasury as somewhat in the
light of foregone conclusion, OFF,
cials expressing the opinion that Ger
man reparations at present were "ob-
yiously more than the traffic would
BEAR and that willingness by
France to reduce these payments
would be merely a recognition Of the
necessity of accepting what could be
paid rather than demanding the i'm
possible.
Negotiations between the American
debt commission and Jean v. Parmen-
tier, the French financial representa-
tive, probably will be resumed the
latter part of next week. when Rep
resentative Burton of Ohio, a MEM
ber of the commission, returns to
Washington.
Time Payments Possible.
If, however. there should ever be
considered among debtors to the United
States, official plans for cancellation
of a part Of the war debts, the only
way this government would be will
dicated at the Treasury Department.
would be through proportionate re-
ductions, leaving. perhaps a large
bulk of the debt still to be collected.
Interest on the war debts might be
the first point Of attack in such
it was indicated.
The United States War Debt Commits
sion. however, as at present consti-
tuted has no authority whatever to
enter into any such matters. it was
having been created by
Congress for three years, for the spe-
cific purpose of refunding the debt,
at a minimum interest rate of 4k
per cent.
So far there had been no proposal
to lower this rate, it was said. But II
a lower rate were to be taken into
consideration during the negotiations
the commission would have to go be-
fore Congress for a reopening Of the
whole matter and further authority.
One view of the British position
was declared to be that reduction
of the reparations might facilitate
world trade, and hence result In more
benefit to all. There was no inclina-
ton, however. on the part Of Ameri-
can officials to take sides with Great
Britain against France in the discus
sion of questions relating to reparationa