Evening star., 1934-06-05
Text of British Debt Note
United States Given Figures to Support argument
Burden Is Unreasonable and Ineqnitable
in Relation to Other Nations.

The text OF the British debt note
to Secretary Hull follows:
Sir:
In their note of December 1, 1892,
his majesty'S government gave full
statement OF the reasons which con-
vinced them that the existing system
Of intergovernmental war debt OBJ
legations had broken down. They
pointed out the difference between
these war debt obligations and normal
credit operations for development
purposes: They showed the economic
impossibility of making transfers on
the scale required by these obliga-
tions and the disastrous effect which
any further attempt to do so would
have on trade and prices. They en-
phasized the sacrifices which the
British nation had made in this mat
ter and the injustice Of the differ
enCe between their funding settle
ment and those accorded to other
debtors
They concluded that a revision of
the existing settlements was essen
tial in the interests of world revival
and they urged that further pay
ments should be postponed pending
such revision.
Nothing that has since occurred
has led his majesty's government in
the United Kingdom to change the
views they then expressed.
2. That the present settlement
imposes upon the people of the
United Kingdom a burden which is
both unreasonable in itself and in
equitable in relation to the treat
ment accorded to other countries
may be clearly seen from the fol-
lowing figures.
Payments Total S2,025, ,00O, ,0e0.
In respect of the war advances
totaling s4,277 900, 900, payments total
ing $2,o25, 100000 have been made UP
to date by his majesty's government
to the United States Government.
Yet despite these payments the nomi-
nal amount of the debt still outStand-
ing as at June Is, 1884, amounts to
$4,7l3,785, 900.
Meanwhile in respect of war ad-
vances totaling s5,773. 100000 made
by the United States Government to
other European governments, aggre-
gate payments made up to date
amount to only $678, 500 900.
Thus though the war advances to
these other governments exceed by
one quarter the advances made to the
United Kingdom. payments made by
the United Kingdom amount to three
times what the United States Gov
ernment has received from those other
powers.
On the other hand his majesty's
government are creditors as we'll as
debtors in respect of these inter-
stated above, they borrowed s4,277,-
100000 from the United States. they
themselves made war advances to the
allied governments totaling $780,
100000 ($7,80G, 100000 at par).
These loans were raised by his
maJesty's government from the people
Of the United Kingdom and the an
nual interest thereon, and eventually
their capital repayment, must, in the
absence of payments by debtor gov
ernments. be met out of the general
taxation of their own people.
Nations Positions Similar.
In this respect the position of the
united Kingdom Is precisely similar
to that Of the United States: But
whereas the United States have re-
ceived very substantial payments
against the domestic charges involved.
his majesty's government have had to
meet the domestic charges Of their
war loans to allied governments in
full, as they have paid over to the
United States Government all that
they have received both from war
debts and war reparationS, and they
have in addition paid nearly as much
again out Of their own resources.
If the United States feel the burden
OF their war advances of $10,050, 900, =
600, against which they have received
s2,703, 100000, how much heavier is
the burden of the United Kingdom,
which with one-third of the popula-
ton of the United States, has had to
meet the full charges on its war ad-
vances of s7,800,0000 without any
net receipts against these charges,
and has in addition made large pay
ments out of its own resources on &C
count of its war debt to the United
States.
None the less, convinced that any
resumption Of payments on the past
scale could not but intensity the
world crisis and might provoke hnan-
cial and economic chaos, his maj
estys government have suspended
their claims on their debtors in the
hope that a general revision of these
governmental obligations may be
effected in the interest of world re-
covery.
But it would be impossible for them
to contemplate a situation in which
they would be called on to honour in
full their war obligations to others
while continuing to suspend all de-
mands for payment o. war obliga-
tions due to them.
8. The improvement which has
taken place in the budgetary situa-
tion of the United Kingdom in no way
invalidates this conclusion.
Huge Burden Carried.
This improvement is due entirely
to unprecedented sacrifices made by
the people Of this country. Since the
war they have been carrying a bur-
den of indebtedness amounting to
approximately $4,000, 100000 ($40,-