1940-04-08 — Page 16

SIR ROBERT

BURNETT'S

CELEBRATED

LONDON DRY GIN

WORLD-WIDE REPUTATION. FOR QUALITY

Sole Agents:-A. S. WATSON & CO., LTD.

WINE DEPT.

LISTEN TO

TEL. 20616.

YOUR RECORDS IN COMFORT

GARRARD” RECORD CHANGER

MODEL RC.10.

PLAYS EIGHT 10" or 12" RECORDS

INSTALLED IN A SUITABLE CABINET FOR USE WITH YOUR EXISTING RADIO

PRICE $155.00

Sole Agents:

S. MOUTRIE & CO., LTD.

York Building

Chater Road.

IT'S HERE!

THE NEW

1940

FORD 10 H.P..

PREFECT

A limited number has just arrived from England. Ask for a demonstration early.

WALLACE HARPER & CO., LTD. 223 Nathan Road,

Kowloon.

Tel. 59245

Arsenal Street, Hongkong. Tel. 28240

THE

HONGKONG

PENINSULA HOTEL;

ཕ.

HONGKONG HOTEL: REPULSE BAY HOTEL;

&

SHANGHAI

ASTOR HOUSE; PALACE HOTEL;

HOTELS

LIMITED

In association with the Grand Hotel dos Wagons Lits, Paking

Monday,

"HONGKONG TELEGRAPH

STUDEBAKERS

FOR 1940

Champion, Commandor, President Eight

Now, Outstanding features

incorporate -

INTEGRAL DOOR HANDLES.

CONCEALED DOOR HINGES, GREATER VISIBILITY,

INTERIORS,

LOEWY-STYLED

and a host of other improve- mnts that count for greater comfort and maximum safety.

For further particulars apply-..

HONGKONG HOTEL GARAGE

Stubbs Road

Tel. 27778-9

DEATHI

April 8, 1940.

WE THE

Britain's debt to Amerlen has long been a subject of controversy in the United States. Criticism of Britain has been severe.

Yet that criticism arises entirely out of misconception and misunderstanding. It is only necessary to give au- thoritative explanation of the difficulties in order to dis- sipate the violent attacks on the British Exchequer that spring from ignorance.

FIRST of all, dealing with

the history of the Debt and the Settlement, it is easy for me to give an ac- count, although much pre- judice existed at the time.

In 1922 the Debt amounted more or less to 4,000 million dollars.

The money

borrowed was from the United States after America entered the war, and at the time when questions of settlement arose other countries owed Britain 8,000 million dol-

SUMMERS.-At his home, Kal Tak Villa, Kowloon City, on April 7. 1940, Capt, Edwin Henry Sum-lars. mers, aged 78 years. Funeral will pass the Monument at 5 p.m. to-day.

Hongkong Telegraph.

Monday, April 8, 1940. Wyndham St., Hongkong Telephone: 20615

THE prefix "Special to the Telegraph i used by the longkong Telegraph to indicate news which is strictly copyright under the provisions of the Telecommunl- cations Ordinance. 1935. Hochs own as bears the indication "UP is received in

Hongkong on the date of publication by

the United Press Associatfonx, who re- serve all rights and forbid republication.

either wholly or in part without previour

arrangement.

The War Goes On

As we enter upon the eighth month of the war we have plenty of reason for satisfaction with the balance of advantage during the seven un- dramatic months that are behind us, Nothing could have served us better than this long respite in which to marshal our resources. When Goeb- bcis boasts that a neutral traveller In Germany would scarcely observe any difference from peace conditions, he is apparently all unconscious that this is precisely Germany's weakness. It-there-is-little- difference it is because little difference was possible. Hitler had years ago harnessed the whole activity of the nation to the furtherance of his deliberate design of launching war on Europe at # moment chosen by himself. Thus, long before the war began the country was already working almost at the maximum pitch of which it was

оп ourselves,

the capable. With other hand, it was only after the emergency had actually burst upon us that we seriously took in hand the task of keying up our economy to war pitch and effeeling the painful transition from peace to war condi- tions. We have made immense strides during this invaluable seven months of "quiet war," and with every day that passes we come nearer to overhauling the enemy. From now onwards the Blitzkrieg, whenever it comes, will find us both in a relative and in an absolute sense immeasurably better prepared than on Sepember

1930. 3. Another gain to be registered is the strangulation, none the less sure for being slow, which the British and French navies are inflicting on the

enemy, despite his every frantle effort to wriggle out of the tolls. We, on our part, are in a position to trade freely with every one of those 10 neutrals and with the whole of the

of the world besides,

rest

HIRED MONEY

by Lord Beaverbrook

Here is the second in a series of articles by Lord. Beaverbrook, exclusive to the "Hong- kong Tolograph” in Hongkong, revealing the truth about the American debt settlement,

It has been sent to newspapers of the United States of America, Canada, Australia, New Zealand, South Africa, and other parts of the world.

It appears in the principal newspapers of the capitals of the Dominions and the United States.

The article has also been circulated in pamphlet form to senators and logislators in all parts of the Empire and every State of the American Union.

Copies of this pamphlet will be obtain- able free of all charge on written application to the Daily Express Office, Fleet-Street, E.C.4.

received deposits

and made

war gold stock, held at that time by the public as well as the Bank,

Any depletion of it was quite im- possible in a country where the gold still prevalled, where the note issue was based on gold values,

Baldwin was forbidden by his in- siructions from making a settlement. lle was permitted only to discuss terms,

But he went further than his in- atructions. He recommended a set- tlement.

bis

He did not walt to consult Cabinet colleagues In Britain.

When

he came home he made a statement on his arrival at Southampton that. the terms he brought back were the best that could be got and ought, to be nccepted.

By doing so he committed his col- leagues to the settlement. A political erlain followed at once. Baldwin had. elther to get his settlement through or realgn. Having made his state- ment there was no way out. His resignation meant the break-up of the Government.

That was the position that con- fronted. Bonar Law. If he main- tained his opposition to the Baldwin! settlement his Cabinet would split.

And there would be another general election, with his Conservative Party divided and shattered at the

polls,

Most of Bonar Law's colleagues were in favour of the settlement. The weight of Cabinet opinion was en that side. And those of his political friends who opposed the settlement

Clearly there is a great contrast Now this was a mis-statement. were handicapped by the fact that. between Pershing's view and that Britain had been in the position not could not subject him to the stresses. Bonar Law was in bail health. They expressed by President Coolidge. of an intermediary, but of a banker and strains of a political struggle. Now, when peace came to the For, while Coolidge said: "They who

So Bonor Law was prevailed upon world the belief was general In hired the money," Pershing says, in loans.

But the mistake was Balfour's mis- to Becept the Baldwin position under Britain that the United States did cffect, "We hired the soldiers."

not the error of the

protest. not expect or exact a settlement. Pershing and the American legis take. It was

British nation.

It has often been represented that: lators in 1917 envisaged the war as

The Note was written to the a joint undertaking. If that is how and said that there was to be no was unequally distributed. Figures Britain should not be held responsi- Kenna, and Mr. J. M. Keynes, utterance of President Wilson, who we must regard it, then the burden when Balfour was growing very old. There were others, including Mr. usefulness had passed. And Winston Churchill, Mr. Reginald Mc- profit from the war, and in April drawn from an American source 1917, addressing both Houses of illustrate this:- Congress, declared that "we secit no material compensation for the sacrl- Aces we shall freely make,"

This conviction was due

THE declaration was in har-

mony with other statements by American public men.

Speakers in Congress had strength- ened the conception in Britain that, in America's eyes; the Debt was a contribution made by the United States to a common cause. Here are some typical utterances made at the time the Debt was incurred.----

Senator McCumber: "We ought to be mighty liberal in the ex- penditure of money when we enn take no part in the real battle, which to-day is the battle of the American people.""

Senator Smoot: "Every dollar expended under the provisions of this Bill will be for the benefit of the United States."

her."

I was the only opponent of the settle-

at a time ment at that time. This is not so..

ble for his statement. It should not be held against the British people.

Yet Britain has never had a fair wealth consideration of the argument in the Balfour Note because of the mis- statement.

The gross cost of the war in per- centage of the national was:**

Great Britain America

34.40 8.07

American opinion was concerned The annual cost of the war in with the mis-statement and not with percentage of national inconic was:- the argument.

Great Britain America The battle deaths in perenntage of population werein Britain

.

34.02 15.50

1.44 45

WITHIN the short space of

eight years, after the Bald- · win settlement, when some 2,000- million gold dollars had been transferred by Britain to the *United States," a financial crisis broke out in Britain, as it was

THERE now came a change of bound to do sooner or later.

Premiership in Britain and a. A great run took place. Foreigners general election. Lloyd George Bury continued to pay. It borrowed. removed their balances The Trea- With such utterances and such went out. Bonar Law came to fifty million pounds from France and

America

facts in their minds the British delegates at the Peace Conference formed high hopes of the American attitude towards the Debts.

can

TT must be said that the Ameri- official spokesmen did nothing then to encourage this British opinion.

At the same time, the American

Power.

the United States. But the run con- Under pressure from Waghini in compelled to abandon the gold stan

tinued,

In the end Britain was And he sent Mr. Baldwin to negotinte the United States. But he gave him dard. There was no gold left. directions to return after making an The Debt, of course, was not re- examination of the Position, He pudiated. But there was a failure to made his own views perfectly plain: ply due simply to the bankrupter A settlement must depend on of the British Treasury and the dis- some other method of satisfying the appearance of the gold. It was United States then the transfer of bankruptcy, not repudiation. It was a misfortune to go bankrupt. It was The

crime,

Bonar

Debt could not be paid in not a situation had arisen of which

10

attitude towards reparations gave, gold. Britain had no gold to send. The by inference, a measure of support it could not be paid in an increased Bonar Law had clearly and empha- Senator Kenyon: "I hope that to British optimism.

sale of British goods. The United tically warned the United States at one of these loans will never be.

Britain asked that "war cost" States would not take more goods, the time the settlement was made.

Britain and the United States had paid, and that we will never ask should be included in the bill for And it could not be settled by means that it be paid. I never want to see this Government ask France manags to be presented to Ger- balance was against for the trade fint responsibility for depleting the

British Britain.

From the making to return the loan we may make tives said that only compensation for The American representa-

Law's position was that of a of

of the settlement to the failure "war_damage" could be asked from deblor willing to pay but requiring pay, 2,000 million dollars of money that payment must be adjusted, both had been transferred from Britain. Senator Cummins: "I am perfect the Germans. The American point in form and amount, to the debtor's to the United States in Debt Instal- ly willing to give to any of the of view, pressed with vigour, pre- capacity to pay.

ments. Allied nations the, money which valled.

Now the debts to the United States adopted by the United States

This principle has since been The United Slates knew the they need to carry on our war, for it is now our war. I would were plainly one of the "war costs 1925, the United States War Debt Payment of the Debt. In the end, In debtor's condition, and yet exacted give it just as freely as I would of the Allied Powers. The United Commission stated that the capacity debtor and creditor shared the res to equip our army or to maintain States was therefore Impairing its to

debtor's power to pay. And, by in considering the funding of foreign

pay should be taken into account ponsibility for emptying the British preventing the British claim on debts.

There were left the goods on Bri- Congressman Mondell: "We can Germany for those "wor costs," the This was what Bonar Law asked tain's shelves. The creditor did not (by the advances) effectively, and Americans allowed the inference to for.

take these. He did not want them. the immediate future, arma, be drawn that the Debt might be

It has sometimes been said-al- The United States had plenty of strengthen, and support those who regarded as a dead letter. are, since our declaration of war,

though Bonor Law did not deal with goods on her own shelves. The trou There was surprise, then, when, a this possibility that Britain should ble was she could not get buyers for fighting our battles."

few years later, the Americans be part with other assets in settlement

them. gan to press for settlement of the of the debt. For instance, Bermuda Nor would the United States take

our navy."

in

In

Congressman Mann: "I think it Debt, Is our highest duty in the making fact, in 1919, when President Caribbean.

and the British possession in the American securfiles in the hands of of war to give aid to those who Wilson's Administration was still in

British investors. The last thing in are fighting the enemy against omflee, Americans in New York, es- this proposal from the British stand- those securities liquidated at a time Without discussing the merits of the world she wanted was to have whom we have declared war.” pecially American business men, point, let it be said at once that no ing heavily,

when the American market was fall- Congressman Fordney: "Their over and over again that the pay- been willing to open up negotiations friendly act if foreigners offered to

mute it plain in their representations United States Government has ever

Indeed, it was looked on as an un- (the advances) only purpose is to ment of private debts by Britain to on such aid them in the best way possible the United States would discharge President has opposed any such ac- sell American securities on the New

a basis. Every succeeding to fight our battles across the sea, Britain's obligations.

York market. without calling upon our men to

quisition. The American Adminis Nothing was expected from the tration do not want any more Island strongly pressed upon Britain by the And this was a view which was. go there.".

accumulated war debls for many populations. The ста when the Congressman, Madden: "We are years to come.

Danish Islands were purchased by the

Americans. It must not be supposed that it is United States for 25 million dollars the story of misfortune. Financial starting out to win a victory as I

But now came another chapter in. understand it, to maintain Ameri- urged or alleged that these represen has long since passed. can rights; and if we can maintain the United States Government's right prefers to leave the responsibility for crisis. The

tations interfered with or impaired The President of the United States collapse in the United States

This was different from the British American rights by furnishing money to somebody willing to fight to claim repayment of the Debt. the Caribbean Islands with the Brit-

United Stales They did, however, create con- ish Government.

perienced our battles for ourselves, we ought adence in Britain that reconstruction

financial

disaster when the country had. would

go forward without any inter-

plenty of money. She had lots of ference on account of these responsi-

gold in her vaults. When the crash. bilities.

camo stock amounted to 4,000 million dollars,

to do it.".

By his utter contempt for every rule of law and every prescription of humanity in the conduct of the war, Hitler had made his regime more universally loathed, if that were

already was in HERE were other public utter- possible, than it

anccs by prominent Ameri- the last phase of the peace. For him

is a disastrous miscalculation that cans in the same voin. he is fighting at

after seven

confidently said:

For example, General Pershing has having been months, assured by Ribbentrop that Britain

الم

time

...

at

So Bonar Law, as I have said, It was only when the change of administration came in the United fer of British islands to United United States, although she had gone

never considered the trans-

When the crisis was over, the States in the year 1921 that the de- mand for settlement of the Debt bo- States ownership, and he gave off the gold standard, had increased

gan to be pressed upon Britain. no instructions on that point to her holding of gold.

The first American request for a his emissaries,

*

and France would fay down the "If it had not been that the Allies funding of the Debt was not made sword after a brief campaign and were able to hold the lines for until 1922, and Mr. Andrew Mellon United States Bonar Law made the REMEMBER the distinction leave him in possession of the field fifteen months after we had entered was responsible for the decision to

the war, hold them with the support press for a settlement of the issue. of the loans we made, the war might have been lost. We scarcely realised what those loans meant to them and to us.

to pull off another of his "weyond

"It seems to me that there is some

But when Baldwin left for the

between the British crisis, position that Britain could pay only according to its capacity perfectly when the gold was all gone and clear to the American Ambassador, British eredit was ruined, and and also in public statements to the the American crisis, when the American newspapers. He deliber-

Realising now that victory is his grasp, he is behaving like a ferocious beast at bay? On our, side. the essential thing is to remember

WHEN the pressure was being ately called in a newspaper reporter gold amounted to 4,000 million. that, though at bay, he still has

put on tho. British Govern- on the eve of Baldwin's departure to dollars, and had increased In plenty of fight left in him. We must not surrender to any foolish notion middle ground where we should bear ment to take up the question, make his views plain to the people 1934, when the crisis was over,. that victory can be "chenply. won" or that it will not demand the Inst maintaining the Allies' armies on tary for Foreign Affairs in the discussed a settlement involving a

a certain part of the expense in Lord Balfour, who was Secre of the United States.

to 8,000 millions, Baldwin went to Washington. He

But in face of this large stock of ounces of effort and of I sacrifice. The

the front while we were preparing, unity and power of our Empire an instead of calling all this money a Lloyd George Government wrote negotiation of the Debt by means of gold, 4,000 mililons in gold dollars, displayed are indeed majestic, and loan and insisting upon its repay- a Note

money payments. This was impossit British citizens who held American our great French ally is n tower of ment. We Were responsible. We In it he said, In effect, what we ble. It meant a transfer, of about bonds pledging payment, In gold strength, but though the final attain- gave the money knowing it would owe to the United States arises from £38 millions of gold a year. And dollars were required to take paper ment of our goal is certain we must be used to hold the Bocho until we the money which others have bor Britain and in hand only £120 dollars, after these paper dollara had. fallen heavily in value. By this gird our loins for a long and arduous could prepare. Fifteen months rowed from us. We have been only millions of goki coin and bullion.

was less than the pre-

PLEASE Turn To Pago 4.

Journey.

Think of it,"

the intermediaries.

This