Evening star., 1922-08-03
WAR DEBT TANGLE
|SPEACE MENACE
British Note Brings Delicate
Subject to Surface-AIlieS
Anxious for Settlement.
GERMANY HOLDING KEY
Her Ability to Pay France Will
Sway All Discussion Of
Matter.
BY lie Associated Pres.

By tl.e Associated Press.
LONDON, August 3.-The British
governments note to Great Britain's
allies in the great war. reminding
them that they owe Great Britain
money and that she has a right to
ask for payment, has thrown wide
open the most delicate topic in inter
national politics. The discussion or
the question OF debts owed to Great
Britain had been studiously avoided
by all concerned, apparently with
view on the part of the creditor
nation that the time for graspins
that nettle might most conveniently
be indefinitely postponed.
The most cheerful view OF the ef-
feet of the Earl of Balfour's note
discoverable here was that IT Will
afford an understanding all round or
what are the policies and intentions
of the governments concerned. 1t is
considered that next to Reputation.
or an equivalent plea of inability
to pay. uncertainty is probably the
worst damage which Europe and the
world Of business could continue to
suffer.
Within a few days-after next
weeks conference between Premiers
Lloyd George and Potncare-the
France should be made clear. The
French position. in one vital respect.
already is plain-that all European
postwar indebtedness is linked to-
gether and any solution of the SIT
uation must depend upon what Ger
many may be willing or be forced
to DO.
Premier's Plans Not Known.
As it is understood here from the
Paris correspondents Of the London
newspapers that France considers any
concessions to Germany in the matter
preparation and in help by foreign
loan should be balanced by similar
concessions to France, newspaper opin-
ion is divided on the point whether Mr..
Lloyd Georges conference with NJ.
Poincare will now be confined to plan
for dealing with Germany, or whether
Lord Balfour's note will not force con-
sideration of the wider field of inter-
allied debts.
There is much curiosity among the
public as to what important members
of the. cabinet were responsible Tor
the strong line Lord Balfour's note
takes. since It is believed there is con-
siderable difference of opinion in the
cabinet. Also there is curiosity as TO
how far the advice of Sir Auckland
Geddes. British ambassador to the
United States, contributed to the fran
ing of the note, since Sir Auckland's s
visit home was supposed to be mainly
for a conference on the American debt.
1t is questionable how far the British
government understands American SEN
timent and what advice is depended
upon for its views.
Reuters, Ltd, says: 1T is stated
that representatives OF American
financial interests who happen to be
in London have expressed the view
that had the readiness expressed by
Great Britain to cancel debts owing
to her been carried out the United
States would-probably not i'm
mediately, but after the general cleo
tions-have been morally compelled
to follow the British lead"
Gerr1any Is Debt keystone.
Reuters also says 1t is the view in
allied financial quarters here that the
only immediate possibility of paying
Germany, and If Germany is unable
to pay the moratorium asked for by
Germany must be given to others:
The Daily Telegraph's correspondent
says: The peremptory manner IN
which cancellation of their indebted
ness was demanded by some. at least
among our debtors. was held to offer
rather scant inducement TO our
justification for a beau geste, but an
expensive one on our part.
Such sideights tend to illustrate
the tenderness of European relations
when it comes to dealing with allied
money affairs. George Harvey. the
American amba ssador. in his speech re-
Gently welcoming Amba ssador Geddes
at the Pilgrims dinner, drew picture
of Great Britain's returning prosperity.
which. in some quarters, was trans
lated as a very gentle diplomatic hint
that Great Britain was in position
to meet American claims. There Is no
information as to whether the Ameri-
can government will be represented
outside the doors of the coming con-
ference between the British and French
premiers by an observer to play the
same part that Ambassador Child
played at the Genoa conference
1t is officially announced mat Siencr
Schanzer. accompanied by Sicnor Para
tore, the new Italian minister OF the
treasury. will arrive in London Monday
for the conference. which also viii be
attended by Signor Giannini. the Italian
economist, who was present at the
Genoa and The Hague conferences.