Evening star., 1933-01-29
Britain Sees Conflict on
War Debts in Prospect
BY A. G. GARDINER.

LONDON, January Z6.-The RooSe-
elt-Chamberlain exchange has brought
the grim specter of war debts back to
the center Of the stage, with ominous
indications of the difficulties ahead.
The essential clash of the American
and the European points of view centers
in the relative importance OF the war
debts as the core of the world depres-
sion.
It is held on this sice of the Atlantic
that final solution Of the debts ques-
ton Is an imperative frs. step to re-
covery, and that to entangle the prob
lem in other issues is to leave the world
floundering deeper and deeper into the
morass of universal bankruptc All
other question: are SUBSIDIARY to this
and dependent on this. Re.no,e the
strangle- hold of the war debts and the
activities Of the world will be released
and questions Of tariffs and currencies
will adjust themselves on the principle
of "solvitur ambulando.'
The fact that the terms Of President
elect Roosevelt's invitation to the Brit
ish government seemed to 1ndicat. that
the question Of war debts would De
complicated with collateral considere-
tions caused much disquiet. which was
reflected in the British reply and in
Chancellor OF the ExcheqUer Caamoe--
lain's speech this week at LEEDS. IEe
essence of that reply is that, while vel
coming the invitation and expressing
readiness to exchange vicwi on o.oer
world economic problems. the B1ltish
government is not prepared to reach
decisions which may anticipate the dis
ference.
Whether 1t was necessary to empha-
size this fact is doubtful. None. as
the Manchester Guardian observes,
suspects Mr.. Roosevelt of wishing to
snatch q separate agreement with TINS
country, or with any other, which
might crab the World Economic Con-
ference. Moreover, the discussions IN
Washington, however authoritative, can
have no f1nality. especially in view OF
the fact that the last word in Anne ica
rests with Congress, with whose lnte-
pendence of presidential direction this
country is now abundantly familiar
Mr.. Roosevelt's difficulties in the mat
ter are not unappreciated here. Con-
gress may easily be stampeded against
whet it might regard as a too generous
settlement, and it is agreed that Mr..
Roosevelt could hardly boldly propose
to cancel nine-tenths Of the debt with
out any counterbalancing consideration
except the assurance that the World
Economic Conference will settle the
rest of the international issues.
On the other hand, the British desire
to treat the debt question as separate
issue is founded on the basic facts OF
the situation. All opinion is agreed that
the success of the World Economic Con-
ference depends on its being preceted
by final settlement of the war debit
and on the cooperation of the United
States. That settlement, in the British
view, must not prejudice the decisions
Of the conference. Especially 1t must
not involve q resumption Of claims on
Germany or abandonment Of the ar
rangements made at Lausanne.
The British position, as stated by Mr.
Chamberlain, favors debt cancellation
as the foundation stone to q revival OF
world confidence. Failing absolute can
collation., Great Britain proposes final
composition with the debtors small
enough to avoid imperiling the Lau-
same agreement or reviv.ng impossible
demands on Germany.
The alternative to a settlement or
some such lines as these Is reputation
with ell its repercussions on the already
toteering fabric Of world credit and
WOIlQ tk0Qc. xulS WOulQ luVOlNc q
clean breach between Europe and the
United States and would torpedo the
World Economic Conference before II
was launched.
This double calamity can be avoided
only by courageous facing of the
facts, and Is an introduction to that
course Mr.. Roosevelt's proposal Is well
coined.
It is anticipated here that Premier
Ramsay Macdonald himself will under
take the mission to America. Without
disrespect to his colleagues, none COM
mands the same confidence in an affair
of such magnitude, and the success OF
his collaboration with President Hoo
yer gives the assurance that If an un-
derstanding is attainable he vii
achieve it. He has this week beer
unanimously nominated by the Organ
king Committee for the presidency OF
the World Economic Conference next
Summer. Whether he performs thai
high duty depends On the issue o.
Lev0ntS In America.
AH>A~-a~Ak