The daily banner. (Cambridge, Md.) 1897-2008, 1920-03-20
ON
PREPARATION RULE
Objects to Sale Of German
Property in Neutral Countries.
REPORTED BRITISH PLAN
Would Transfer All Teuton Electrical
Enterprises in South Africa as Part
of Indemnity.

Washington, March 20.-"StrOng re-
monstrances" have been made by the
government against rulings of the al
lied Preparations commission that under
the peace treaty sale of certain Ger
man property i'll neutral countries can
be forced if necessary to satisfy the
initial payment of the German ildem
nifty.
Under Secretary Polk, of he state
department, writing TO Senator Hen
derson, Democrat, Nevada, said "a
further protest" was in preparation, as
such a construction of the treaty was
contrary to an official Interpretation
exchanged between Germany and the
allied powers.
Mr.. Folks letter was i'll response to
an inquiry by Senator Henderson re-
garding reports Great Britain had re-
quested German property and all the
rights of German citizens i'll electrical
enterprises in South America be taken
over by the commission and subse-
quently transferred to Great Britain
as part of the indemnity due it by
Germany.
Mr.. Polk said the state department
had no information as 20 this, but
added:
There has been, received, however
certain information having relation 10
your inquiry to the effect that the al
| lied governments represented on the
| reparation commission have advanced
| and Professionally adopted a conStruc'
| ton of article 235 which would EN-.
| power the Preparations commission tO
tdemand payment by Germany of the
initial 100000 gold marks in any
commodities, gold, ships or otherwise
| which the Preparations commission may
| desire; and in the exercise Of such
| power the commission may request the
| sale of German property in neutral
| countries at least if in the form OF
r credits or securities. Under such pow
| err it is possible that the sale to the
| PREPARATIONS commission of the securi
| ties controlled by German corporate
enterprises in South America might
be required of Germany.
/ 1.-The department is endeavoring un
| officially to keep in touch with mat
| tiers coming up for decision before the
| commission in order that any actor
| Of the commission which might be IL
| derogation of American trade Oppor
| tunities should not pass unchallenged
L iS hlnHit.1nnn6
| ever, in that it has no right to demand
| such informat lion and this government
not having ratified the treaty, cannot
exercise the right to veto an interpre
| taiOn of the commissions powers sucl
| az contained in the construction OF
| article 30, mentioned above.
| Nevertheless strong remonstrance
| has been made and a further proteS'
is in preparation on the ground thai
| The assumption and use of such pow
ers are prejudicial to general economic
! reconstruction offers an opportunity
to the governments dominating the
! Preparations commission indirectly tC
exercise a dangerous controlling infiu
ence on private trade with Germany
and incidentally is unwarranted by the
terms Of the treaty and contrary to
the spirit if not the Letter of the OFF
cial Interpretation given Germany by
the allied powers before the signing
of the treaty.
THE result # such protest is hard
10 predict as by the terms of the
treaty the influence and power of q
large part of the civilized world are
| concentrated behind a decision e he
| PREPARATIONS commission and the also.
| Ute veto power specially provided to
he United States in such matters can
| he exercised only if and when we ra i
| " the treaty.
Senator Henderson Sa ID tn" offic'a'
| Interpretation referred 10 by Mr.. Polk
was contained in formal notes ex,
hanged between Germany and the al.
lies in which the underSt and.ng was
reached the property of German citi.
| zenS in neutral countries could not be
taken. The senator also said inquiries
at the state department disclosed nc
| replies TO the United States protest
| had been received
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