News and citizen. [volume] (Morrisville, Vt. ;) 1881-current, 1922-05-03

the right TO collect the interest ON war
debts owing her. In diplomatic quar-
tiers it is taken as showing how Prime
Minister Lloyd George and his closest
advisers view Americas final decision
not to participate at Genoa.
Paris.-The British Government has
notified the French Government that
when the United States calls on Great
Britain to pay interest on her war
debt to Washington, London will call
on Paris to pay interest on the war
debt France owes England.
The note to the French foreign office
advises that the three-year arrange
ment between England and France,
made in 1919, by which England ex-
cused France from any payment on the
debt during that period, will not be
renewed at its expiration this month.
Through private conversations England
has let France know that interest pay
mentS will be asked if America, as
England expects, asks the Allies, in
Guiding England, to begin interest pay
ments on the bonds to be arranged for
in the American war debt funding
plan.
France owes England 14000,000000
gold francs, or about $2,T5O,000,0 1000,
much of which England in effect bOr-
rowed from America and placed at
Frances disposition. This is some
what less than what France owes
America.
The British Government has placed
in next years budget the item of f25,-
100000 to be devoted to payment Of
interest on British obligations to the
United States.
Inasmuch as England's demanding
interest payments from France de-
ponds on Americas demand on the
Allies, Including England it is very
apparent that the British notification
to the French interests the United
States Government. In fact, it is prob
able that the French reply to England
will say something about general con-
sideration of interalied debts. In this
connection the European governments
attach Importance to the bill recently
passed by the American congress
creating a funding commission.
Doubtless the allied governments
would wish to enter into negotiations
with America There would be two
great difficulties in the way of imme-
date success The first is that Amer
lean opinion and European opinion
about the payment of war debts is not
the same. In the second place, from
the European, and especially the
French, point of view, the question of
international debts involves the repa-
rations question, the French argu-
ment being that they can pay only if
Germany pays. There again the re-
cent report from Washington that AM
erica planned to have an official repre-
sentative on the Preparations Commits
sion which collects from Germany is
interesting.
Whether or not the British Govern
ment had the Genoa conference in
mind in making its notification it is
hard to say. Inasmuch as the three
year agreement expires this month,
this month was the right time to speak
about it. However, the effect of the
British note will unquestionably be to
make the French all the more firm
against any discussion at Genoa Of the
reduction of what is due to France
from Germany. If France had to pay
interest on the debt to Britain this
year, which would be about 100000
600 francs paper and to America,
which would be another 1,000,0000OO,
it would make a serious difference to
the French Government, which soon
must resort to another lean to make
the budget balance.