Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-03-19
u. S. Protests Sale
of German Property
BY Treaty Board
BY Associated Press.


Washington. sMarch l9,--"Strong
remonstrances" have been made by
She American government against
rulings Of the allied reputation eoTi
mission that under the peace treaty,
sale OF certain German property In
neutral countries can be forced l.
necessary, to satisfy the initial pay
ment of.tDe German indemnity.
UndeGS secretary Polk of the state
department, writing today to Senator
Henderson, of Nevada, said "a
further protest was in reparation as
such construction of the treaty was
contrary TO ain official Interpretation
exchanged between Germany and the
allied powers"
Mr.. Polk's letter was In response
to an inquiry by Senator Henderson
regarding reports that Great Britain
had requested that German property
and the rights OF German citizens
In electrical enterprises in South
America be taken over by the COM
mission and subsequently trans
aferred to Great Britain as a part of
the indemnity due 1t by Germany.
Mr.. Polk said the state department
had no information as to this but
added:
There has been received, how
ever, certain information having re-
lation to your inquiry to the effect
that the allied governments repre-
sented on the commission have ad-
vanced and Professionally adopted
construction of article 235 which
would impower the commission to
demand payment by Germany of tho
initial 10000. 900, 900 marks in gold in
any commodities. gold. ships or
otherwise, which the reparations
commission may desire, and in the
exercise of such power the commits
sion may require the sale Of German
property in neutral countries, at least
in the form of credits or securities.
Under such powers 1t is possible that
the sale of the securities controlled
by German corporate enterprises in
South America might be required Of
Germany.
"The department Is endeavorins
unofsicially to keep in touch with
matters coming up before the COM
mission in order that any action of
the commission which might be in
derogation of American trade oppor-
runities should not pass unchal-
lenged. The department is handi-
capped however, in that 1t has no
right to demand such formation
and this government not having rati-
fed the treaty, can not exercise the
right to veto an Interpretation of the
commissions powers such as con-
tained in. the construction of article
g35 nleftiohed above.
"ae1ertheless, strong remonstrance
has been made and u further pro-
test is in preparation on the ground
that the assumption and use of such
powers is prejudicial TO general
economic reconstruction, offers an
opportunity to the governments do
mating the reparation commission
indirectly to exercise dangerous
controlling influence on provisional
trade with Germany and, incident
ally, is unwarranted by the terms of
the treaty and contrary to the spirit
if not the letter of the Interpretation
given Germany by the allied powers.
THE result of such protest is hard
to predict. as by the terms of the
treaty, the influence and power of
large part of the civilized world is
concentrated behind the reparations
commission and the absolute veto
power specially provided to the
United States in such mutters,' can
be exercised only If and when we
ratify the treaty"
Senator Henderson said the under
standing was reached that the prop
erty of German citizens in neutral
countries could not be taken. The
senator said the inquiries at the
state department disclosed that no
replies to the protest had been \re-
ceived.