The New York herald., 1922-08-25
ALLIED DEBTS TOU. S.
DECLARED SEPARATE
Mellon Issues Statement That
Britain Is Not Guarantor
For All.
HE CITES MEMORANDA
Treasury Deemed 1t Cardinal
Principle Borrowers Were
Bound individually.
lie CITES MEMORANDA
Special Dispatch to THE NEW York HERALD.
New York Herald Bureau.

Special Dispatch to THE New York HERALD.
New York Herald Bureau,
Washington. ID. c., Aug. "a.
Every European Power that bor-
rowed money from the United States
to meet the cost of the world war will
be held separately and individually
responsible to the exact extent of its
own commitments to this Govern
ment Neither England nor any
other Power negotiated loans from
the American Government on the
understanding of joint responsibility.
This is. in effect, the answer of
the United States Government to the
recent note OF Earl Balfour, British
acting Minister OF Foreign Af-
fairs, in which 1t was intimated that
the British debt was contracted in the
interest of the allies, that Great
Britain undertook to guarantee the
loans to the other Powers and that
Britain's ability to pay was therefore
contingent on the payment of large
sums due her.
The American answer to the British
Foreign Office came In the form of an
official statement from Secretary OF the
produced documents hitherto unpub-
l.shed to show that not only did this
country insist on individual RESPONSE
bllity for commitment but in which II
was specifically stated that no Power
undertook TO guarantee the debts con-
.racted By other Powers.
Proportions Outlined.
Secretary Mellon declared that the
reason for the statement was the mis-
apprehension as TO the exact status of
the obligations of foreign governments.
with particular reference to the A,135.-
000000 debt OF England. In substance
the Treasury statement set forth the
following propositions:
First-England did not guarantee the
loans made to the other European Pow
ers, no guaranty OF this kind having
been ever demanded and the exact re-
verse being shown by the official men,
oranda bearing on the question.
transactions growing out of the war
are absolutely independent of British
loans 10 other Powers and of financial
exigencies of reparations payments.
Third-Each and every Power will be
held accountable Dy this country for
its own obligations, consisting largely
of borrowings made during the war to
cover purchases made In this country
BY the Allies.
After submitting official documents
bearing out the position OF the Treas
ury and completely outflanking the Bal
four maneuver Secretary Mellon said:
1T appears to be quite clear that the
respective borrowing nations each gave
their own obligations for the money ad-
vanced by the United States and that
no guarantee OF the obligations of one
borrowing nation was asked from any
other nation. This Is the understands
ing OF the Treasury as to the status
OF the foreign obligations growing out
Of the war now held by the United
States"
Two Documents In Cnse.
The doc iments submitted by Secretary
Mellon are evidently intended for the
consideration OF the British treasury
on the eve of coming to the United
states of a British funding commission.
The two documents In the case and
which Secretary Mellon believes COM
pletcly bear out the American view
OF the debt status bear the dates OF
June. 1918 and of June. 1920.
The first of these memorandums
handed TO the British Ambassador read
az follows4
80 far as tho purchases of the Allied
Governments for war purposes within
the United States and its territories and
insular possessions are concerned 1t Is
Continued on Page Six.