Evening star., 1933-01-24
BRITISH WANT ALL
DEBTORS IN PARLEY
Understanding With French
Regarding Settlement Is
Chief Worry.
CONTINUED From First Page.)

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of 80 per cent of her reparations pay
ments, was made possible only after
Great Britain and France concluded
"gentlemans agreement" The two ma
tions agreed to stand together in regard
to the settlement of the war debts.
The British did not stick to that
agreement last December when they
paid their installment to the United
States. but that was not considered a
breach Of the agreement since the pay
ment Of the December installment did
not have anything to do with the ques-
debts.
Agreement Finally Reached.
The decision to pay was reached after
a serious fight within the cabinet Ram
say Macdonald. Baldwin and their fol-
lowers were in favor Of payment, while
Sir John Simon. the chancellor of the
exchsquer. Sir Neville Chamberlain and
their followers opposed it. An agree
ment was finally reached whereby the
MacDonald-B Baldwin group won their
point, but only after they pledged
themselves to the other faction of the
cabinet that henceforth the British
government would proceed in its nego-
tiationS with the American Govern
ment regarding the general settlement
of the debt question even in closer CO.
operation with France than has been
the case heretofore"
Thus. when the State Department at
the request of the President-elect is
sued the invitation to Great Britain
alone to send delegate to Washing
ton to prepare the ground for con-
ference between Great Britain and the
United States. the British cabinet be-
came uneasy The question was no
longer purely financial and economic,
but political. The question arose as
to whether the British government
would agree to discuss and eventually
accept settlement of the war debts
for herself and leave France and the
other defaulters to the tender mercy
OF the American Congress, or whether
Great Britain would insist for the in
clusion of these nations into the gen.
eral settlement.
clear-cut refusal on the part Of the
British Government to accept such an
invitation was impossible. An I'M
equivocal acceptance would have pro-
voked serious crisis in the British
cabinet and would also harm the pres
and Great Britain.
Waiting Policy Adopted.
Thus the British cabinet decided to
adopt policy of procrastination. While
it expresses its satisfaction at the in
vitation received from Mr.. Roosevelt,
the British government is endeavoring
to flnd out what question will be dis
cuSSed at the Anglo American meeting.
In the meantime the following logical
arguments are being brought out in
conversations between British and
American officials.
The British say the question of debts
is closely linked with the economic
conference and through that with the
general economic revival of the world.
Consequently, it would be of little use
II some Of the most important nations
like France, were left out
Furthermore. the British say. what Is
America after? A fair liquidation of
the debts. That cannot be achieved by
individual settlements with the various
debtor nations, but by common agree
ment with them all. America wants to
be paid lump sum. 1t Is immaterial
how the debtor nations divide among
themselves the payment Of such a sum,
provided 1t is paid the United States.
France Is the next important debtor
after Great Britain. 1t would be i'm
possible to reach any adequate agree
ment unless Frances case were heard
at the same time. Consequently, the
best way to approach the question of
the revision of the debts would be for
the American Government to sit down
and discuss this matter as q whole with
all the debtor nations and come to an
agreement for the payment of one sum
by all OF them regardless as to the ca
pacity OF payment of each individual
nation.
Difference Of Opinion.
The administration and Mr.. Roose-
velt do not see this question from the
same angle, for the time being, at least.
MIR. Roosevelt is aware of senti-
ment in this country that any reduc-
ton OF debts should he based on the
capacity to pay Of each country This
doctrine has existed ever since the
flrst funding agreements were made.
and it would be dificult to change
it now.
Aside from the feeling which exists
In this country in regard to France,
because Of her unnecessary default last
December. the country does believe
debts should be reduced on the prin-
ciple Of the capacity to pay.
Mr.. Roosevelt was anxious to take up
the British case first because he IS
aware Great Britain has powerful
arguments to demand q reduction of
her indebtedness He also realizes
sentimentaIly the country and Con-
gress are in favor of reduction of the
British debt. Like the State Depart
ment, he IS convinced desirable settle
ment could be made without difficulty,
settlement which Congress would
have no hesitation in accepting. Once
Great Britain is out of the way. it
viii be comparatively easy to reach set
Elements with the other nations.
Wants Agreement by June Is.
As . concession to the British point
Of view. the State Department, basing
its decision on previous conversations
between Secretary Stimson and the
President-elect. decided to extend the
invitation to the other nations which
hod f,,1f1lad their nl.li0ations Last IA.