Evening star., 1923-08-13
! hausted by four years of strenuous
| warfare and block

hausted by four years of strenuous
warfare and blockade.
! Complaining that even the British
suggestions that the occupation of the
Ruhr should terminate from the mo-
ment that guarantees or pledges less
economically harmful and more
effectively productive should have
| been not merely devised and obtained
but seen to be satisfactorily operating
| have only been met by a definite re-
! fusal, the note proceeds:
/ Complete evacuation apparently is
not contemplated until the total Ger
! man reparation liability is integrally
| discharged. Reiterated announcements
! to this effect. coupled with insistenct
! on leaving undiminish the cNtal OF
! 1872. 600, 100000 marks of German in
| debtedness, can only be interpreted
! as an intention to remain in occGpa
| tion of the Ruhr for a number OF
/ years, which, at best, cannot be less
| than thirty -six-and which. in view
! of the generally admitted proba ability
| of complete execution of the schedule
| being found practicable under any
/ circumstances, may be extended in
definitely, if not in perpetuity.
Concern Is Felt.
Such a situation, of which the
political, quite apart from the econom-
ic, consequences could only be de-
scribed as disastrous, cannot but be
viewed by his majesty's government
with the greatest concern. 1t would
vividly conjure up danger of inter
national relations being affected in a
manner tkreatening-to use the words
of the eleventh article Of the cove
nant of the league of nations-to dis
turb international peace and the good
understanding between nations upon
which peace depends. His majesty
government cannot believe the French
and Belgian governments will be
able to reconcile the opinion OF the
world to an indefinite maintenance OF
SO perflous a situation"
The note concludes with recapit-
ulation of former Premier Bonar
says the principle of the British plan
is that Great Britain is ready. sub
ject to the just claims of other parts
OF the empire, to limit her demands
for payment by her allies and by
Germany together to a net sum ap-
iproXimating fourteen billion two hun
dred million gold marks. represent
ing the present value of Great Brit
concessions which the government
may be able to offer in respect TO
interallied debts. says the note. must
billion two hundred million gold
marks. which it can recover from
Germany.
They can can only be Essantsa nrl, in sub sub
4
arations settlement for which the
government are pressing has been
agreed upon and is such that his
majesty's government can regard
their share of the German payments
as an asset of real financial value,
the note declares.
Lord Curzon asserts that this will
be attainable under settlement
guaranteeing punctual payment OF
the German debt by a system of con-
troll free from the economically un-
sound impediments inherent in the
military occupation of the Ruhr."
See No Purpose Served.
Finally, the note says that in view
of the fact that. although Belgium
warmly welcomed the British offer 10
discuss with the allies the question
of future security. since France had
contended this question had nothing
to do with the Ruhr and must be
postponed to an unnamed date, the
British government thinks no use1ul
purpose can be served by pursuing
the matter.
Accompanying Lord Curzon's note
was a memorandum fully explaining
Great Britain's position with resaru
to interallied debts.
The memorandum declares the gov
ernment's opinion is that 1t Will be
impossible satisfactorily TO deai VIII
the question of interalned deDts untll
it is known what amount Is recoV-
that the total amount Great Britain
asks from Germany and her alles
together is, in effect, less than the
amount of the allied debts, being
limited to the amount of the Brltish
debt to the United States, without re.
gard either to loans raised by Great
Britain in the open American market
or to the value of American securl-
ties, estimated at between 70O.OOO.oOe
and 800, 100000 pounds sterling. useo
to finance the allied cause in America
before the United States entered the
war. the loss of which, from the
economical viewpoint, is the equIva.
lent of contracting an equal amount
of the foreign debt.
Call Action Unwise.
The British government, however
the memorandum says, cannot con-
ceaI from the French government
that Andrew Bonar Laws sugges-
ton is less attractive to it now than
when made in January, inasmuch as
deterioration of Germany's financial
prospects through the unwise Franco.
Belgian action has made the security
of the German reparation bonds mucf
more precarious. 1t must also be
understood that Willingness to dis
cuss the question must not be inter.
preted as a waiver on Great Britain's
part of British rights as a creditor
which are governed solely by con-
tracts under which money was ad-
vanced and the securities which
Great Britain holds"
The memorandum declares there was
no suggestion when the loans were
made to France that repayment was de-
pendable on recoveries from Germany
The bills were made subject to renewa
for limited period only after the ter
mination of the war, with the clear in
tention that they should be redeemed
by French government loans raised or
| the London market, the redemption
| money being applied to the cancellation
of British securities issued on French
account.
1T must be clearly understood" says
the memorandum, that in the absence
of new agreement French obliga.
tions in this respect cannot honorably
be repudiated and that in the mean
time the present practice Of adding in
terest to capital cannot be indefinitely
continued, and that the commencement,
of payment, at any rate Of a part OF
| the interest. should be made as soor
as the sterling and franc exchange be-
! comes reasonably stable"