The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1920-03-25
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
aulres 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 reparutiOns 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, Deml, Nevada, said -
further protest" was in preparation as
such n construction of the treaty was
contrary to an official Interpretation e.
changed between Germany and the al
lied powers.
Mr.. Folks letter was In response to
an inquiry by Senator Henderson re-
gardiug 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 ana
subsequently transferred to Great Brit
ain as 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, however,
certain information having relation toll
your inquiry to the effect that the al.
lied governments represented ON the re-
parations commission have advanced
and Professionally adopted a construc-
ton Of article 23j which would empow-
er the reparations commission TO de-
mand payment by Germany of the Ini-
tial 2OOOOOOOOO0 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 II In the form of
credits or securities.
Under such power 1t is possible |
that the sale to the reparatons com
mission Of the securities controlled 10y |
German corporate enterprises in South |
America might be required Of Ger
many
THE department Is ondeayorlng IN
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-
tiOn Of American trade opportunities
should IA pass unchnllenged. The de
partment Is handicapped, however. In
that II has no right to demand such In
formation and this government not
navlng ratified the trenty can not ok
ercise the right TO veto mn interpreta-
tlon of the commissions powers such
az contained In the construction Of ar
tice 235 mentioned nhOve.
Nevertheless strong remOnstrance
has been made and eIrther protest Is
In preparation on tie ground that the
assumption and use Of such powers IS
prejudlclal to general economic recon
struction; offers on opportunity 10 the
governments dominating the repara-
tions commission indirectly to exercise
dangerous controlling Influence on
provisional trade with Germany ana
incidentally Is unwHrrnnted by the
terms Of the treaty ana contrary to
the spirit II not the letter Of the OiR.
clul Interpretation given Germany by
the allied powers before the signing Of
the treaty
"Thc result Of such protest Is hnrd
10 predict. as by the terms Of the trea.
~ the Influence and power Of large
part Of the civilized world Is concen.
trated behind decision " the repura
tiou commission and the absolute veto
power specially provided 10 the United
states IN such matters can b. exercised
only n aud when wc ruufy the treaty"
Senator Henderson said the oniclnl
Interpretation referred 10 by Mr.. Polk
WIS contained Id formal notes ex
changed between Germany and the nj
lies, IN which the understanding was
renchcd that the property of German
citizens in rculrnl countries could not
be nixon The senator also said that
Inquiries ar the state department dis
closed jhot mo- replies 70 the United
States protest hud been received