The New York herald., 1920-12-30
GERMANY T0DEFY
ALLIES, VIOLATING
PLEDGE TODISARM
Time Limit Expiring Jan. l
Will Find Terms of Spa
Not Carried Out.
PENALTIES DISDAINED
Berlin Links Reparations
With Military in Game
to Divide Allies.
BRITAIN'S AID EXPECTED
Rapid Strides to Recovery of
Commercial Power Add
to Confidence.
PENALTIES DISDAINED
BRITAIN'S AID EXPECTED
by LAURENCE HILLS.

BY LAURENCE HILLS.
Special Gable to THE NEW YORK HERALD.
Copyright 1920, By THE New YORK HERALD.
New York Herald Bureau,
Paris. Dec. 20.
Germany has tied up the reparations
question with that of her disarmament
by threatening to break off the Brussels
conference on reparations. which is due
to reopen on January 10. II the Allies in
slst on literal obedience to the military
agreement the Germans signed at Spa.
This is the latest complication in the
situation which now confronts the Allies
by reason of Germany's failure to get
rid of her civilian guards and otherwise
carry out the Spa provisions within the
specified period, which expires on jan
uary L.
1t is now definitely clear that Ger
many intends to confront the Allies on
that day with her violation of the Spa
agreement. and by coupling the economic
question, wherein she believes she has
the sympathy of Great Britain. with the
disarmament problem she hopes to make
II difficult for the Allies to unite again
on a common policy of invoking the
penalties prescribed at Spa. These pen
alties provide for further occupation OF
German territory. whether on the Ruhr
or elsewhere. in the event Germany does
not live up to them. Naturally France
is pressing this point vigorously.
Playing Crafty Game.
The latest German move, which Is a
continuation of the policy she attempted
at Spa to mitigate the military terms.
this time takes the form of conversations
between German Foreign Office officials
and allied envoys In Berlin, after the
latter received Germany's note of pro-
test against the ultimatum by Gen. Mol
let president of the InterAlled Com
mission of Control. demanding compll-
ance by Germany with the Spa agree
ment before January /.
The fact that Germany has not put her
threat. on paper. but has confined it to
simultaneous conversations with the al
lied representatives in Berlin, indicates
the clever policy the Germans are pur-
suing. knowing that n settlement of the
reparations question as speedily as pos
gible is as vital to France and to Bel
Eium as il is to her. Germany's protest
against the dismantling of eleven of the
fourteen fortresses on her eastern from
tier and her request that she be permit
ted to retain certain of them in strong
military condition are also instanced as
part of the present policy.
Great hopes have been pinned to the
Brussels conference. and breaking w
of 1t after the two sides have gotten to-
gether would provoke another crisis and
compel the Allies to reconsider the whole
OF the policy they intended to follow In
connection with Germany.
It Is impossible not to detect n wave
Of pessimism which has suddenly per-
vaded political circles here as this year
nears it's end. Not only Is the military
situation in Germany being again harped
on to raise anew the fears of France.
afY-f1 inv n hf.,,r
else 10 this pessiinism are reports which
are steadily being circulated here Of the
remarkable progress Germany has made
In connection with her financial and
commercial rehabilitation. It is not
questioned even by many neutral OBJ
servers that Germany is concealing the
real figures covering the strides made
by her industries during the last twelve
months.
Expect to UnderselI U. s.
A prominent diplomatist with un-
doubted sources OF Information told THE
NEW YORK HERALD correspondent here
that from present indications Germany
would In a short time be underselling
France. England and the United States,
one of the reasons for this being the re-
markably cheap money with which she
Is paying her worlSmen. Her recapture
or the toy trade, which is causing many
French and British firms TO close their
businesses was cited as only one in
stahce Of her recovery despite all the
treaty obstacles.
The same diplomatist. who voiced the
general opinion in circles here. gave
Ger1nany's rapid rehabilitation as one
of the chief reasons for the attitude she
Is assuming in the notes now passing
between the Allies and Germany on dis
armament and other questions. because.
feeling that her commercial strength and
underselling power are returning. she Is
beginning TO realize her strength In
other ways as well.
In this situation Marshal Foch's posi-
ton seems to be causing much comment
IT was recalled that the statements made
In the Chamber of Deputies by Premier
Leygues recently were based on infor-
nation from Msrshals Foch, Joffre and
Petaln that no menace was possible from
Germany militarily, and II was asserted
that this does not coincide with Gen.
Nollet's apparent fear OF the growing
German forces. As Marshal Foch Is
head Of the Versailles commission which
Is to inform the allied Governments re.
garding German army statistics before
concerted action IL defined, IL Is won
dered whether he Will maintain his for
rner position and not recommend occu-
patton of the Ruhr district at this time.
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