Evening star., 1923-01-21
BRITISH MAY Agree
0NU.S.DEBT Terms
Settlement Plan Tentatively
Worked Out Holds Out
Hope, Is Belief Here.
LONDON FEARS HAZARDS
Unsettled World Conditions Bring
Caution-Tarif Wall May Be
Raised to Meet Payments.
BY the Associated Press.

BY the Associated Press.
Although the British debt commits
sion sailed for home yesterday with
the mission which brought 1t to
America uncompleted, well informed
off1cials in Washington are by no
means pessimistic over the possibility
or an early agreement for the refund
ing OF the British war debt to the
United States.
In view OF facts disclosed last night
for the first time some Of those ia
miliar with the recent exchanges be-
tween the British and American COM
misstoners would not be surprised IL
the British assent to a settlement plan
tentatively worked out here soon after
chancellor Baldwin and his colleagu
OF the British commission arrive in
London.
Sudden Recall q Surprise,
While the greatest reserve is shown
here regarding the nature Of this ten
tattve plan. II Is known that If repre-
Sents the well considered judgment of
ooth commissions as embodying the
maximum concessions that might rea-
sonably be granted by the United
SLAtes. IN view OF the advanced stage
Wnlch mad been reached in the discuss
Slons. the sudden decision of the Brit
ish government to recall its commits
sioners to London for consultation in
stead OF authorizing them to conclude
the agreement. Is said to have come as
complete surprise to the British
can side.
As the home government had bent
ru1iy INFORMED of every step in the
progress OF the negotiations. IL had
neen assumed that the absence Of OBJ
Jectlons to the plan as II developed
could be construed only as forecasting
assent to the final stages.
Many Approximations Felt.
The conclusion has been drawn in
diplomatic circles here that the grave
cnange IN the European political stu
atioh aiter the two commissions began
their work caused the British govern
ment to hesitate to assume any new
!iahclal burdens at this time unless
~ was assured OF the ability of the
taxpayers to bear them.
Among the many elements Of annrs-
nension which thus may have infiu-
enced British officials are enumerated
the possibility OF an expensive war
W.. wash turkey. heavy loss Of trade as
French In the Ruhr, followed by in.
cFeasing Unemployment Of English
Workmen, unrest in India and nm
satisfactory conditions In Egypt.
Wnicn might make IL necessary to
status. To tie up the Government In
sucn an enormous financial transac-
uon as that contemplated by the
commission under those conditions is
saio 10 nave been viewed as hazard
Gus In the extreme.
Half Million Per Day,
Few persons outside of the inner
or she extent OF the obligation Great
Britain was to assume under the
plan considered. 1t is known thar
the original American plan of re-
tLunding would, call for the payment
oy the British government of upward
or a million dollars a day, with the
iast payment sixty years in the fu-
ture. After a careful study of the
ngures presented by the British.
however. the American commission
is said to have been disposed 70 ac.
cept the view that half Of that sum
or half a million a day-represented
to pay. 't'
To meet even that charge it was
held that the British goyernment
would probably find it necessary to
make extensive changes in its whole
financial and economic system. THAT
would. OF course. make IL incum bent
upon the cabinet to seek the Aid Of
parliament and secure legislative an
proval of its plans. There will he an
opportunity for the returning com
Inlsslopers to be helpful 10 the gov
ernment in that matter by personally
addressing themselves to leaders in
parliament.
May Raise Tariff Wall.
one project of the greatest inter-
est TO this country which has been
mentioned in Great Britain in con-
nection with the refunding plans re-
!ates TO a customs tariff. To make
ooth ends meet it has been argued
that the British markets must be
preserved for British workmen and
producers. and that the United States
cannot be permitted to maintain a
heavy balance of trade at Great Brit
aims expense. Some British states
men are said to believe the onIy
feasible way to stop the drain would
be to erect tariff wall around the
British Isles, with special reference
to American products and materials.
such as cotton and copper and even
foodstuffs.
These considerations, of course.
were not discussed in detail by the
British commissioners here. They
were merely matters in the back
ground at this stage and it was in
dfcated that they might not even be
brought forward at all if the terms
consented to by the United States
were regarded by the British gov
ernment as within the present re-
sources OF the nation. 1t is this
question the British government now
viii consider after hearing the per-
sonal explanations of its commits
sioners.