New Britain herald., 1922-08-02
BRITAINS VIEW 0N
 |NTER.ALLIED DEBT
Cannot Excuse Her Debtors as
 She Must Pay America

'FSf'pii' <Nub. z. Nby tne Associated Press)-The British foreign office last night issued the text of an im- portant on inter-allied debts. The note places on formal record, on the eve Of the coming ocnfererice between Raymond Poincare, the French prem fer, and David Lloyd George, the Brit ish premier, with representatives of tlal wand Belgium in London, the British government views on inter allied indebtedness and reparations
 Briefly the policy advocated is that it would be unjust to the British .<. payer to ask him to forgive allied war debts while at the same time he was required to shoulder the indebtedness to America.
 International Settlement. The note, which was addressed to six European powers by the Earl Of Bafour, acting foreign secretary, ad- vocates international settlement of debts and reparatons on the basis yf general cancellation.
 The note in it's preamable explains that there has been no formal dis cussion between the French and Bril ish governments and that the British government is not anxious to raise the discussion, but that recent events leaves little choice in the matter.
 The note proceeds to state that no international discussion has yet oc- cured on the unexampled situation partially disclosed by these figures, and says If the British government hitherto silently has abstained from making any demands upon its allies for repayment of interest or capital 1t is not because the government un- derrates the evils of the present state of affairs or because it is reluctant to make large sacrifices to bring them to an end. On the contrary, it Is prepared as a part of an interna- tional settlement to remit all debts due Great Britain by the allies, in respect to loans or by Germany in respect to reparations
 Difficult Problem.
 Stating that recent events make such a policy difficult of accomplish ment the note proceeds:
 With the most perfect courtesy and In the exercise of their undoubt-
 
 have required this country to pay in- terest accrued since 1919 on the An glo-American debt, to convert it from an unfunded to a funded debt and to repay it by a sinking fund in twenty-five years. Such procedure is clearly in accordance with the orig inal contract. His Maiesty's govern ment makes no complaint of this They recognize their obligations and are prepared to fulfill them, but evil dently they cannot do so without pro- would have wished to pursue"
 Stating that the government does not conceal the fact that 1t abandons the policy of general cancellation of indebtedness with the greatest reluct- ance, the note explains that the Brit ish treasury would be large gainer If all debts were paid, because Great Britain is owed more than she owes.
 Partners in Great War.
 But can the present world situ- ation," the note continues, be looked at only from this narrow financial | standpoint?"
 
 that the allied and associated powers were partners in the greatest interna- tional effort ever made in the cause of freedom and that they are till | partners in dealing with some, at | least, of its results.
 ITO generous minds" says the note, 1t can never be agreeable, although I for reasons of state it may perhaps | be necessary to regard the monetary | aspect of this great event as a thing apart. to be torn from it's historical setting and be treated as no more than an ordinary commercial dealing italists who lend"
 Then referring to the economic ills from which the world is suffering, in- cluding the weight of international indebtedness with all its unhappy | effects upon credit and exchange" the | note asks:
 Burden of Taxation
 How can normality be reached | while conditions so abnormal are permitted to prevail. and howcan | these conditions be cured by any remedies that seem at present like ly to be applied"
 Such procedure" says the note. lis contrary to every principle of justice and cannot be ex- pected to commend itself to the people of this country. They are suffering from an unparalleled bur den of taxation, from an immense in national wealth from serious unemployment and from a severe curtailment in useful ex- penditure.
 These evils are courageously borne, but were they to be increas- d by an arrangement which, how ever legitimate, is obviously one sided, the British taxpayer would inevitably ask why he should be singled out to bear a burden which others are bound to share. To such