DEBTS AND REPARATIONS [To the Editor of the SPECTATOR.] SIR, —The
twin question of Reparations and Debts is once again actively discussed. It is increasingly realized that upon a rational solution of this problem world peace mainly hinges. Not only is its unsettled state a natural har to harmony, but it so easily lends itself as a plausible en use for deliberate acts productive of dissension.
Three ways there are in which the problem can be treated :-- 1.to let the Dawes Plan lumber along.
2. For America to cancel the debts.
8. The flotation of German bondS•covering the fixed total: In the final things, the cancellation scheme strikes me as the most adaptive and ultimate if coupled with the stipulation of a revision of the Treaties. If America is to make such a vast sacrifice, let it be on the altar of peace, not to enrich the war chest. - The Dawes Plan is doomed to have a breakdown owing to its inborn organic defects. But then it never was meant to be anything more than a provisional structure, such as in: America is called a " taxpayer," to be replaced at the oppor- tune time by an adequate building. Moreover, it carries with it the continuance of the Rhine occupation, with, its hate-breeding potentialities.
As regards the German loan proposition, in existing cir-, cumstances, with America resolute in its refusal to cancel whilst France and the other nations pressed for the means of paying America, one can see no alternative. But the handling of 'it requires that everybody should act reasonably. Logically, America has .a perfect right to have the principal say in the matter. America will naturally urge this point : Why should we exchange the obligations of England, of France, of Italy and the rest for the. single pledge of Germany. If Germany continues to meet her direct payments regularly, America is sure to get hers, even from France. On the other hand, if Germany defaults on her payment, because of inability to bear the burden, then she would be certain to follow the same course towards America, and with less fear of fatal consequences.
What I would propose is this : Let the German bonds be guaranteed by each nation, in proportion to the moneys received through the flotation of the loan. Such an arrange- ment would prove fair all round, involving no added risk. Besides, to my way of thinking, it would tend to bring about a common tie of interested solidarity for the preservation of peaceful relations.—I am, Sir, &c.,
GABRIEL WELLS (American citizen).
Cannon Mansion, 14 Pall Mall, S.W. 1.
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