Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1920-03-19
us. STIRRED
by RULING OF.
COMMISSION
Reparations Body Hears
From Order for Sale of
German Property.

remOnStranceS have been made by
the American government against
rulings Of the allied reparations
commission that under the peace
treaty, sale of certain German prop
erty in neutral countries can be
forced if necessary to satify the in
itial payment Of the German in
demnity.
Interpreted Otherwise.
Under Secretary Polk OF the
state department, writing today to
Senator Henderson, Democrat, Ne
vada, said "a further protest" was
in preparation as such as construc-
tion Of the treaty was contrary to
an official Interpretation exchanged
between Germany and the allied
powers.
Washington, March 10. - Mr.. d.
Folks letter was in response to
an inquiry by Senator Henderson
regarding reports that Great Brit
ain had requested that German
property and the rights of German
citizens in electrical enterprises in
South America be taken over by
the commission and subsequently
transferred to Great Britain as
part Of the indemnity due it by
Germany.
Take Any Commodities.
Mr.. Polk said the state depart
ment had no Information as to
this. but added:
There has been received, how
ever. certain information having
relation to your inquiry to the eff.
feet that the allied government
represented on the reparations
commission have advanced ant
Professionally adopted a construc
tion OF article 235 which would
empower the reparations commits.
sion to demand payment by Ger.
many Of the initial 10000, 600, ,O0t
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 neu
trail countries. at least if in the
| form Of credits or securities. I'm
der such power 1t is possible that
| the sale to the reparations commits
sion of the securities controlled b,
German corporate enterprises IL
South America might be required
OF Germany.
Have No Rights.
"The department is endeavorint
unofficially to keep in touch witt
the matters coming up for decision
before the commission in .ordel
that any action taken by the com
mission that might be in derogatiol
Of Americas trade opportunitiei
should not pass unchallenged. Th'
department is handicapped. how
ever. in that it has no right to de
mand such information, and thi
government not having ratified tn
treaty can not exercise the right t
veto an Interpretation Of the com
missions powers such as contain
ed in the construction of articl
235 mentioned above.
Nevertheless. strong remon
STRANGE has been made and a fur
ther protest is in preparation o.
the ground that the assumption
and use Of such powers is preju
dicial to general economic recon
struction; offers an opportunity I
the governments dominating tn
reparations commission indirectl
to exercise a dangerous controllin
influence on provisional trade wit
Germany and incidentally is unwar
ranted by the terms Of the treat
and contrary to the spirit. II nc
the letter. Of the Official interpre
tation given Germany by the al
lied powers before the signing G
the treaty.
Outcome Uncertain.
"The result of such protest j
hard to predict. as by the terms &
the treaty the influence and powe
of a large part of the civilize
world is concentrated behind a Dc
cision Of the repaPations commits
sion and the absolute veto powe
; especially provided to the Unite
States in such matters can be exel
!, cised only il and when We ratif
the treaty"
| Senator Henderson said the OH
cial Interpretation referred to
Mr.. Polk was contained in forms
notes exchanged between German
and the allies in which the under
standing was reached that th
property Of German citizens in ner
trail countries could not be takel
The senator also said that inquil
les at the state department disclo:
ed that no replies to the Unite
States protest had been received.
/ nnV All en- We nc