Debts

The note which the ingenious British Chancellor of the Exchequer, Winston Churchill, sent to France (TIME, Feb. 16) started a teacup storm in the latter country and Italy.

France. La Liberte, Paris journal, summed up neatly the reaction of France to the British note:

"America is responsible for it all. The English note says clearly she wishes to be paid only what America claims from her. We appreciate the nuance that England gives the affair--namely, that so far as she is concerned she remembers all about the common cause. Anyhow, that ought to help us with America."

Other newspapers warned the Government against being "lured" into a premature debt settlement with Britain by the friendly tone of the note.

Officially, no comment was made and a reply to the British note will not be envisaged before the middle of next month. Unofficially, France fell back on her old security plea. Briefly her position is: She cannot pay debts unless she receives reparations from Germany; she cannot make any plans to pay debts over a long period unless she has adequate security against German aggression. The specific objection to the British suggestions for debt payment is that the less Germany pays, the more France must pay; hence France must be in a position to exert any necessary pressure upon Germany.

At this point, a pertinent remark was interjected into the hubbub by S. Parker Gilbert, Agent General of Reparations. Said the young genius: "It is too early. It need not have been debated for a couple of years yet. We shall have to wait and see how the money comes in and how much France gets from Germany."

Italy. Italian opinion on the debt question was cautious. To a country with as few credits as Italy and a war debt to the U. S. and Britain alone of nearly $5,000,000,000, this was understandable.