The Inter-Ally Debts

December 30, 1924

Report Outline
Inter-European Debts
World War Foreign Debt Commission

Effect of Dawes Plan

Since the adoption of the Dawes plan, the problem of the Inter-Ally Debts has assumed a more immediate importance. As long as the Reparation question remained unadjusted, it was impossible to attempt any comprehensive settlement owing to the unwillingness of France to commit herself to further financial burdens until she knew more definitely what were her prospects of payment by Germany, Although the success of the Dawes plan in its initial stages cannot be taken as a guaranty of its ultimate success, its adoption clears the way for a more fruitful discussion of the whole question of inter-ally debts. In January, 1925, the Allied Finance Ministers and Colonel Logan, officially representing the United States, will meet In Paris for such a discussion.

Amount of the Debts

The Inter-Ally Debts were incurred by the various Allies between 1914 and 1920 for the direct purpose of prosecuting the war against Germany and after the Armistice for various purposes directly due to the war. From 1914 to 1917, England was the chief lender. This position was in turn assumed by the United States upon her entry into the war. The following tables show the debt incurred during this period.

Debts owed to Great Britain by  
France $ 2,707,020,000
Italy 2,317,248,000
Russia 2,728, 404, 000
Belgium 502,524,000
Jugo Slavia 107,406,000
Other Nations 321,732,000
  $ 8,684,334,000
Debts owed to France by  
Russia $ 1,111,000,000
Belgium 584,300,000
JugoSlavia 300,000,000
Po1and 208,000,000
Greece 177,200,000
Czecho -Slavakia 106,000,000
Other Nations 230,608,500
  $ 2,717,908,500

Interest is not Included In the above figures, as the European powers have never reached an agreement as to the rate of interest on their war debts. These figures are approximate.

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