Evening star., 1925-08-09
Belgian Debt Negotiations.

Important negotiations relating to
the Belgian debt to the United States
begin here tomorrow, with the Bel
gian commissioners meeting with the
American Debt Funding Commission.
The successful settlement Of the Bel
gian debt doubtless would give added
hope for agreements with France and
Italy for the funding of their debts
to United States.
Involved in the question of the Bel
gian debt is the proposal that the part
of the debt incurred prior to the
armistice shall be paid out of German
reparations. The Belgians base their
contention for this treatment Of the
debt on the assurance which President
Woodrow Wilson is said to have given
in Paris. The United States has been
particular, however, since the close of
the second Wilson administration. that
the debts of the allied nations to the
United States shall be paid without
regard to the German reparations.
The United States does not desire to
be placed in the position of a collector
of reparations from Germany, in
which 1t does not share. Once this
country agrees, however, to swap the
debts owed by Belgium, France or
Italy or any other nation for the rep
arations, which Germany. under the
terms of the Versailles treaty, must
pay these nations, then the United
States becomes in fact greatly inter-
ested in the payment of the German
reparations.
America Is not a party to the Yer
sailles treaty Of peace. That pact was
never ratified by the Senate, although
President Wilson and the other mem
bers Of the American delegation to
the peace conference took part in its
negotiation. While the United States
would be glad to see the nations which
were its allies during the World War
obtain from Germany the reparations
to which they are entitled, it is not
fair to call upon the United States to
act as the collector of the reparations.
In the end, all debt funding settle
ments entered into by the American
Debt Funding Commission with the
debtor nations must go to Congress for
its approval. The feeling exists that 1t
would be folly to agree to permit the
payment Of part Of the Belgian debt
with German reparatioss, in view Of
the strong sentiment In Congress
against such transfer Of obligations.
Furthermore, such q concession to
Belgium would be seized upon by
other debtor nations to have their
debts to the United States settled in
the same manner.
The United States is no usurer.
The tairest and most equitable terms
will be offered the Belgians and the
other debtor nations. But the United
States feels that the time has come to
reach a definite understanding with
regard to these debts. 1t is particu-
larly unfortunate that arrangements
were not made in the year immediate
ly succeeding the signing of the armi-
stice for the funding of these interna-
tional debts. In those days the aid
WHICH I1tC OIlllSu OldlcS IcAuGTSu In0
allied nations was fresh in mind and
heart. The sense of obligat ton had not
been dimmed by the propaganda of
many foreign politicians, as it has
been in recent years. Through this
propa aganda the peoples Of France and
Italy particularly have been led to
believe that the debts to the United
States really do not exist, certainly
not morally. 1t is this attitude on the
part Of these peoples, an attitude
which has been developed largely for
political advantage, which now makes
it the more difficult for a settlement
of debts which are just.
The principal lever left in the hands
of the United States to bring about a
settlement of the debts is the need Of
some of these countries for additional
loans. 1t would be unfortunate to be
compelled to deny further credits, yet
the position of the United States be-
comes particularly ridiculous when
American millions are loaned to debtor
peoples who refuse to admit their
obligations under previous loans.