San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-01-24
Present Congress Probably
Will Be Asked to Act
on Payment Plan.
DECISION IN LONDON
Cabinet to Act Following
Return of Mission Sent
to Washington.
BY DAVID LAWRENCE.


to the present session of Congress a
recommendation for the settlement of
the five billion dollar war debt owed
by Great Britain to the United States.
The British mission which sailed from
New York last week will reach home
ON Friday and 4 cabinet meeting is
scheduled for Saturday and n few days
later Ambassador Harvey will transmit
the decision of the British. No doubt
exists in the minds of government Off
cials here who handled the matter that
satisfactory agreement will be
reached
The information. obtained today,
clears the air of the-many rumors and
erroneous interpretations which fol-
lowed the departure of the British mis-
sion, rumors which conveyed the idea
of a deadlock as well as Indefinite do
lay. For reasons of their own the
American government and the British
mission made no statement of CXnccta-
tons when the sessions adjourned. This
was partly out Of Difference to the Brit
lNl NdblllNl WHICH must IdlllN tue dN-
ton and partly because there are still
some details which must be settled in
London. Ambassador Harvey is thor
ouChly familiar with the situation and
will negotiate these details. In fact
now it is definitely known that lie was
summoned to America primarily to he
here when the British debt mission
was negotiating with the American
funding commission and only incidental
~ 10 give his viewpoint on the repara
tions controversy.
Agreement Terms Not Known.
The exact nature of the agreement
which will be reached will not be known
until after the British cabinet meets.
but there is every expectation here that
the British cabinet will recommend to
the cabinet the major principles which
were asserted in the conference here.
these relating to the period of years
for the payment of the debt. and the
notifications of the interest rate.
Congress alone has the power to
ratify the agreement for the American
government and the administration will
want the present funding act modified
not only 10 permit more fleXibility in
the handling Of the British debt. but
for negotiation of a settlement of all
the other debts. The formula followed
in the case of Great Britain will be 4
precedent for other debts, but this does
not mean necessarily that other COun-
tries will be the same terms. II does
mean that the funding commission will
probably seek TO have the limits of its
authority broadened so that it may have
more flexibility. This is essential, the
administration believes, irrespective of
the capacity of Britain to pay and IT.
respective of what the future may hold
in store for the other countries which
owe American money and which have
rot yet made known their wishes as TO
funding or principal and interest.
Secretary Mellon is hopeful that the
settlement of the British debt will have
beneficial influence on the inter
national business situation clearing
away the uncertainties which have sur
rounded the question of British credit
because of these undetermined obliga-
tions. Congress is 10 adjourn autOma
tically on March 4 next. There has
been an impression in many quarters
that the debt question would hang over
for action in the future and that moth
ing would be settled between now and
March 4. The administration is anx-
ious however. to get action at this ses-
sion believing that the matter can not
he indefinitely delayed. President Hard
ing in his recent letter 10 Senator
Lodge pointed out that instead of pass
ing resolutions for the calling Of an
economic conference. more could be
done toward the sterilization Of the
economic situation in the world by Civ
ing thc American funding commission
broader powers 10 negotiate settle
mcnt Of war debts which have hung
like cloud on the foreign exchange
and credit situations ever since the
war
Is No Tentative Agreement.
When the British mission left Wash
ingtOn last week, they carried away
definite impressions of what the United
States government could do and what
it could not do. Under no circum-
stances is it accurate to say tentative
agreement" was reached. Strictly speak
ing. the American funding commission
didn't have any right to make a tenta-
tive agreement or any other kind Of
an agreement which differed in the !
least from the specific authority grant |
ed TO the American mission by act OF !
Congress. To have reached one agree |
ment with the British which antiCi- |
pated a change of the present law by |
Congress would have been subject to !
the possible criticism Of anticipating !
the action of Congress and would have
put the American mission in the posi- |
ton of violating the spirit of the present |
statute irrespective of whether il is .
good law or a bad one.
She the British were given to under.
stand that as soon as they reached a
decision in their cabinet meeting and
the. details to AmbaSsa-
lor Harvey in formal fashion, the
American funding commission would
recommend through President Harding
hat Congress accept the the proposal.
It is virtually an American proposal.
put this roundabout way is really necrs-
,ary to preserve the amenities Of the
and prevent criticism in Cor
,ress.
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