Arizona republican., 1920-02-21
WILSON DENIES AGREEMENT LIN
 SALE OF SHIPS
Says No Understanding With Britain Exists Tells of Tentative Plan to Credit Germany With Surplus Value of Ton mage
Republican 4. p. Leased WireJ

Republican 4. p. Leased WireJ
 WASHINGTON, Feb. 2o.-Prcsi- dent Wilson fiatIy denied today in a formal communication to the senate that he had any agreement | or understanding with British of ficiaIs regarding disposition of the fleet of former German liners
 around which, since they were of
 fered for sale by the shipping board, has ragged a controversy
 into which congress, courts and
 government agencies have been
 drawn.
 "There is not, nor has there been, any agreement or understanding be- tween the president of the United States and officials of Great Britain concerning the sale of the ex-German vessels in possession of the United States" MT. Wilson said, responding specifically to a resolution by Senator Branda gee, republican, Connecticut, adopted by the senate, nor is there any agreement understanding with respect to what disposition shall be made of these ships by the United States
 T believe the above information fully answers the senate inquiry.s'
 At the same time, however, and in order that the senate may be in pos session Of all the information there IS in any way relating to the vessels Tn question, the president transmitted a copy of a hitherto unpublished tenta- tive agreement reached in Paris that Germany eventually would be credited by the reparationS commission, should congress approve, with any surplus valuation of the ships in excess of merchant tonnage losses of the United States during the war. In no case would title to the ships themselves pass from the United States, the agree ment provided
 Bill Would Defer Sale
 Before Mir. Wilson's message reached the senate, the commerce commission had decided to recommend passage of the bill drawn by it's chairman, Sen ator Jones, republican. Washington. deferring sale of the ships until they shall have been refitted for commer- ciaI service by the shipping board and congress shall have laid down a na- tional shipping policy. The house mer- chant marine committee had embarked on an independent inquiry with Chair many John Barton Payne, and Vice Chairman Stevens, of the shipping board reiterating their divergent views on the advisability of present sale of the vessels, and in the district supreme court Associate Justice Bailey took un- der advfsemet application of cousnel for the board that $5,000. 900 bond be required of William Randolph Hearst,
 
 porary injunction against the boards plan to sell the fleet.
 The proposed agreement, transmitted by the president. was signed in May. 1919, by Premier Lloyd George and NIT. Wilson. The presidents signature, however. was made conditional on an appended explanation that it was subject to the approval of congress. In the document the presi- dent said he had intended to send it to the senate after ratification of the peace treaty.
 The agreement covers all vessels captured. seized or detained by any of the allied or associated governments. George Agreement Made
 Public
 Officials recalled that it was draga up after a controversy between Pre- mier Lloyd George and Mir Wilson. m which the British proposal that all captured, seized or ceded enemy ships De pooled and reallotted on the basis 1f tonnage losses. was opposed by@ti1e president, the resulting tentative =ai7- ierstanding being made public today for the first time, although it's general Durport has been known.
 The document contains five clauses, and the essence of it's application@to he 30 ships involved in the present controversy lies in paragraphs fwo md four The first provides that all enemy craft "captured, seized or de- ained' before the armistice as war measure shall be retained by the hold ng power, which will own the same rec from any claim of any allied or associated government" The fourth section provides that where the valua- ion of such retained tonnage. es- ,ecially in the case of Brazil China. Cuba, Siam and the United States ex-
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