New Britain herald., 1925-08-20
WILSON'S PLEDGE TO BELGIUM HAS
 BEEN MADE GOOD
Special Treatment in Debt Fund, ing RedeeInS Promise, Sec
 retary Mellon Declares
DETAILS OF TERMS ARE
 GIVEN TO KING ALBERT

ul ILlN " hllIu nlDDltl Opinion In Belgium is That Parlia-
 mentary Action Should Await Ap-
 proyal of American Congress-
 American Treasury Secretary Ex-
 plains Reasons For Remitting h.
 tcrest on Bclgium's War Debts.
 Washington. Aug. 20 Rl-When the American government recognized Belgium's claim to special treatment in payment of her war debt, Secre- tary Mellon said today, it redeemed q promise of President Wilson, which at the time it was made so import ant that it forestalled disruption of the Versailles peace conference.
 Why Interest Is Rcmtted.
 The treasury secretary, who Is head of the American debt funding commission, declared this circum- stance was weighed carefully by the commissioners and by President Coolidge in agreeing to remit the interest on all Belgium borrowed from the United states during the war. Mir Mellon said the pledge Of President Wilson was made at a p,I oI, fn withdraw from the peace negotia tons, and that Secretary Hoover, member of both the Versailles con- ference and of the debt commission, testified during the debt discussions | here that tho influence of Mir. Will sons promise on the peace settle ment was undisputahle.
 Is First Explanation.
 Secretary Mellons explanation was l the first disclosure of the Circum- stances which led the Amercian gov ernrcnt to dcviate from the policy of non-rcCOrnitiOn of any peculiar satus for Belgium by virtue of the promise of the war president at Versailles. That there would be no such recognition was stated many times on high authority before the discussion here began, but when the htory of the peace conference was reviewed and laid before President Coolidge at Plymouth it was decided that tho moral obligation asserted by the Bolgians could not be denied.
 Belgium Argues To Stay.
 The stage at which Belgium was induced by President Wilson not 10 withdraw from Versailles, MT. Mel lon said, was reached when it had been decided not to allow q Belgian claim against Germany for the eN- pcnse of taking up tho war time cur rency forced upon the BolGians dur ing the occupation, and not to give Belgium the right to collect from | Germany for the cost of machinery and plants actually moved out of the country hv the Germans. 1h" rejection of these two items had aroused Belgian resentment to tho point that her treaty negotiations were about 10 withdraw when ii was agreed that these claims would he offset in a measure by sNocial treat mcnt of Relgium's debt to her allies and associates.
 The Ability To Pay.
 This circumstance, and the estt- mated ability of Belgium to pay were said by Secretary Mellon to have guided the American debt commits sioners to final settlement In computing the ability to pay, Ger manys prospective payments 10 Bel gtum were 8 factor as well as the technical situation in the lnterna- tional evhanGc field. Belgium witt q depreciated currency and some loss of income from the international lh- vcstments of her citizens could nol be expected to pay at this time the S1S.0Oo. .OOO per year which would be required 10 discharge the full infer est and principal. The gold for pur- chase of international exchange would not be available to her.
 While the American view is that no rrecedent is set by the special consideration extended Belgium fl considers that a general principle possibly was laid down by the eN- tension of leniency in annual pay ment rates during the first ten years Great Britain also has been given an abatement in interest rates for len years, and similar consideration probably will be given France and Italy.
 The plea that the war debts were incurred during q period of high prices complicated hy high Amerl- can taxation Is regarded here. how ever. as having no validity in any debt negotiations.