It had long been sensed by the American State Department that French and Italian statesmen had this idea in mind. Fear of walking into a trap or being put in an awkward and ungracious position had much to do with the American decision to remain aloof from these conferences, a policy which had first been stated by our unofficial representatives at the Brussels Conference. The British Government determined to anticipate bargaining on any such basis. Two days before Poincaré came to London to confer with Lloyd George in August, Secretary Balfour issued a statement on interallied debts in which he skilfully tried to “pass the buck” to the United States. He declared that it would be impossible for Great Britain to entertain any proposition to reduce or cancel the sums owed her by her European allies so long as the United States insisted upon the repayment of the British war debt. Had not Great Britain been a borrower from the American Government in 1917 and 1918 because of the necessity imposed upon her of furnishing credits to an almost equal amount to European countries? The Balfour note was issued on August 5. On August 7 Poincaré, accompanied by several of his colleagues, arrived in London to confer with the British Cabinet on coercive measures to be taken against Germany. The French premier was unmistakably disconcerted by the unexpected declaration of British policy on interallied indebtedness. He knew very well that American public opinion was against forgiving any of the debts and that the comment of the American press had been sarcastic and vehement. Uncle Sam did not intend to pay the German war indemnity! Lloyd George and Poincaré found themselves in more hopeless disagreement than after the Cannes Conference. It was only for a moment that the Russo-German treaty had thrown them into each other’s arms. Things were approaching a crisis in the Near East. Fascismo was preparing to oust the Government in Rome. The London Conference accomplished nothing.