The Washington herald., 1922-08-04
BRITAIN TOPAY
U.S.. WARDEBT
HORNE ASSERTS
Will Send Mission in Sep
tember, Despite Bal
. four's Note.
MOVE TO CANCEL
STIRS COMMONS
Asquith Leads Attack on
Stand Taken by
Ministry.


.nces drawn from Lord Baifours
note regardias cancellations OF in
ter-aIlied debts, Sir Robert Horne
chancellor of the exchequer. insisted
In commons today tina. England
.ealizes her obligations to the
United States and intends to pay
them
Moreover, Sir Robert said the
British debt funding mission will go
20 America In September to discuss
terms of repayment
But while giving this word of re-
assurance. the fiscal minister en-
,hasized the desirability of some
sort of cancellation of iDter-allied
debts.
There is no greater impediment
% European recovery than the
aeavy burden of war debts and can
.ellation would give new impetus to
reconstruction, he declared.
Parliament Is stirred.
Parliamentary circles have not
been so stirred in months as by the
controversy aroused over Lord Bal
tours note. Discussion has ragged
.uriously and long-cabled accounts
have been received from America
picturing the cold reception the pro-
oosal received. British business men
have commented adversely on the
Balfour note.
life. for enemies of Premier LLOYD
George believe they have an open
ing for an attack Lloyd george
warmed against forcing Germany too
far The government will resist
any proposals which would further
5isintegrate Europe" he declared
rhis statement in commons followed
Intimations from Paris that Premier
Poincare's plan for coercing Ger
many contemplated seizure OF the
lPuhr and establishment Of a buher
state out of the German Rhineland
provinces
Eyerything to Lose.
There is everything to be lost by
driving Germany too far" the Brit.
Ish premier said. 1T might divert
her into a state of despair. where
she would throw herself into the
ranks of either the reactionartes or
the communists. There would be no
reparations in either case
a revolution in a well-organized
country like Germany. Lloyd George
said, would be far more serious tnan
the Russian revolution Germahy'
II treated reasonably viii recover
and then il will be possible TO assess
her for more adequate sums the
premier said
Coming almost on the eve Of the
Monday Lloyd Georges remarks
we're considered highly significant
Ne emphasized that every reason
ahIe consideration would be given
Claims advanced by France, but in
sisted that it must be understood
the allies meet on equal terms
Asquith Leads Attack.
Herbert Asquith. former prime
minister and leader of the opposi-
tion liberals. opened the attack
after Horne had completed his de-
4 tense of the British position
The European interallied debts.
Asquith asserted. should be written
of. for business reasons, but op-
nosed partial or contingent remis-
sions because America knows we
are able to redeem our debts
The suggestion implied in Bal
four's note that the United States
ia under a moral OF sentimental
obligation to remit Great Britain's
debt was deprecated by Asquith.
Sir Robert went into the financial
obligations of the allied countries
al length. Nearly all of the money
Great Britain has received from
Germany in reparation payments
about f56.000, 0,000-has been spent
ON the army of occupation in Ger
many, Horne said. England's war
debt, he pointed out, amounts to
sS14 per capita: Frances is 1929.
and Americas s211. England's
taxes, therefore. are twice as heavy
as those In the United States he
said
Senator Borah. IN indorsing Sec
retary Melons declaration that
Great Britain's in;erallied debt can
collation. proposal will not change
Americas policy toward its foreign
debts believes America should never
consider any cancellation proposal
without assurance that it practi-
caily guarantees land disarmament.
The position OF the American debt
funding commission, as outlined by
Secretary Mellon. makes 1t plain
Sthat the work of funding should
hnot be halted. especially since Great
Britain has acknowledged her war
debt to America, declared her will
fngness to fiquidate, and announced
her intention to send commission
10 America in September.