Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1920-03-26
U. S..PROTESTS
ALLIES RULING
Opposes Forced Sale of German
Property in Neutral Lands
to Pay Indemnity.
FIGHT ON OVER FOE FUNDS
State Department at Washington In
quIres About British Action Regard
ing German Property Rights in
South American Countries.

Washington, March 20.-"Strong re-
monstrances' have been made by the
American government against rulings
Of the allied reparations commission
that under the peace treaty, sale of
certain German property in neutral
countries can be forced If necessary to
satisfy the initial payment Of the Ger
man indemnity.
Under Secretary Polk of the state de-
partment, writing today to Senator
Henderson, (Dem.), Nevada, said "a
further protest was in preparation as
such a construction Of the treaty was
contrary to an official Interpretation e11-
changed between Germany and the al
lied powers.
Mr.. Folks letter was in response to
an inquiry by Senator Henderson re-
garding reports that Great Britain had
requested that German property and
all the rights of German citizens in
electrical enterprises in South America
be taken over by the commission and
subsequently transferred to Great Brit
ain as part of the indemnity due it by
Germany.
Mr.. Polk said the state department
had no information as to this, but
added:
There has been received, however,
certain information having relation to
your inquiry to the effect that the al
lied governments represented on the re-
parations commission have advanced
and Professionally adopted construc-
tion of article 235 which would empow
er the Preparations commission to de-
mand payment by Germany of the ini-
tial 200OO000,000 gold marks in any
commodities, gold, ships or otherwise,
which the reparations commission may
desire; and In the exercise of such
power the commission may require the
sale of German property in neutral
countries at least If in the form of
credits or securities.
Under such power it is possible
that the sale to the reparations COM
mission of the securities controlled by
German corporate enterprises in South
America might be required of Ger
many.
1.-THE department is endeavoring un-
officially to keep in touch with matters
coming up for decision before the COM
mission in order that any action of the
commission which might be in deroga-
ton of American trade opportunities
should lax pass unchallenged. The de-
partment is handicapped, however. in
that it has no right to demand such In
formation and this government not
.aaving ratified the treaty can not ex-
ercise the right to veto an interpreta-
ton Of the commissions powers such
as contained in the construction Of ar
ticle 235 mentioned above.
Nevertheless strong remonstrance
has been made and further protest Is
in preparation on tie ground that the
assumption and use of such powers is
preiudicial to general economic recon
struction; offers an opportunity to the
governments dominating the repara-
lions commission indirectly to exercise
q dangerous controlling influence on
provisional 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.
1.-THE result of such protest is hard
to predict, as by the terms Of the trea-
ty the influence and power of large
part of the civilized world is concen-
trated behind decision of the repara-
ton commission and the absolute veto
power specially provided to the United
States in such matters can be exercised
only if and when we ratify the treaty"
Senator Henderson said the official
Interpretation referred to by Mr.. Polk
was contained in formal notes ex-
changed between Germany and the al
lies, in which the understanding was
reached that the property of German
citizens in neutral countries could not
be taken. The senator also said that
Inquiries at the state department dis
closed that no replies to the United
States protest had been received.