That is to say, that Great Britain could well pay her debt
to the United States, ceding the greater part of her credits towards
France and Italy.
But the truth is that, while on the subject of the German indemnities,
stolid illusions continue to be propagated (perhaps now with greater
discretion), neither France nor Italy is in a position to pay its
debts.
The most honest solution, which, intelligently enough, J.M. Keynes has
seen from the first, is that each of the inter-allied countries should
renounce its state credits towards countries that were allies or
associates during the War. The United States of America are creditors
only; Great Britain has lent the double of what she has borrowed.
France has received on loan the triple of what she has lent to others.
The credits of France are for almost two-thirds undemandable credits
of Great Britain; more than 14 milliards being with Russia, they are
for considerably more than one-third bad debts.
France and Italy would be benefited chiefly by this provision. Great
Britain would scarcely either benefit or lose, or, rather, the benefit
accruing to her would be less in so much as her chief credits are to
Russia.
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