Evening star., 1920-05-30
ANGLO-FRENCI PARLEY
AT HYTT1E FRUITLESS
Only Tentative Agreement Reached Re-
garding Germany's War Indebtedness
Interest of u. S. Is Discussed.

could pay ssa5 900. 900. the balance left
OF the billion coming to her from Ger
many after she had paid her French
debt. Great Britain would thus receive
from the continent. 1856. 100000 in
German bonds, but would owe the Unit
ed States s4.210. .oo0. 900 on various loans.
These paid. she still would retain So
3S5. 100000 in German obligations.
Belgium. owing France. Britain and
the United States. sl.34o. 900 900 and
receiving $2.000.o00.000 in German
bonds. would retain $3.50. 1000. 900, when
she had settled her external debts AL
ways assuming that the United States
were willing TO take German bonds, tho
redistribution of these German bonds
would. after the transactions outlined
above. be as follows:
United States 81, 360, ,ooo, 900 4ee1
france -..-...-. 1855, 900 900 -
Great Britain -. 1896. 900, 900 22s
Belgium ........ 660.000.o00 -
$4,000. 100000 1907
Another Aspect Presented.
But there is another aspect to the
Hythe proposal, namely, the German
Is IT conceivable that Germany can
ana VIII consent to pay a billion a
year for the next twenty-eight wears,
l do not believe 1t. Conceding at once
that the sum is the smallest which
can oe asked OF Germany and meet
the dlmcultfes in which the various
European states have been plunged
oy the German attack-for I do not
believe any just criticism can be lev
eled at the figures as a matter of
right-still. as a matter of possibility
they seem to me hopelessly high.
In the Paris conference the Amerf-
can representatives steadily advocated
fixing the total of German payments
at 81. 5.00o. 100000. Keynes in his book
decided upon $7.5oO.000.o0o as the
limit Of claims which could be justly
based upon destruction wrought by
the Germans. The figure fixed by
American financial experts at Paris
would represent capital value OF
$1,000. 100000. which is Keynes esti-
mate of actual damage done by the
Germans in excess of the ships. mate
| rails and other things taken by the
allies in the armistice period.
Settlement Main Consideration.
But the most important single thing
In the world now is to get some kind
of a settlement. 1t may be that the
Germans will not pay anyway. what
ever the sum fixed. I confess that re-
cent events all point in this direc-
tion. But il Germany does not pay
then there is only one alternative. an
archy in central Europe, accompanied
by French and Belgian military occu-
patton of the Ruhr coal district and
such other regions near the Rhine as
promise to give these nations some
little revenue in coal or money. to
enable them to face the situation Gre
ated by German devastations.
I accept the figure of the American
experts at Paris. which is the figure
of Mr.. Cravath. for the maximum or
German payments possible. namely.
annual payments having q present
capitalization value of 500,o00.00o.
but accepting this figure IL is clear 10
me that this payment alone VIII not
save France, Belgium or Italy. 1t VIII
not go half way toward meeting me
expense of restoring their devastated
areas, accepting the lowest estimate.
which has been placed upon this task
that of Mr. Keynes and meeting their
external obligations. which must be
met, IL bankruptcy is to be escaped.
PRINCIPAL Trouble ut Versailles.
The main trouble with the treaty of
Versailles was that 1t attempted TO
solve the insoluble. Most criticism is
based upon the assumption that there
was a simple way out OF the condi-
tions created by more than four years
Of unparalleled destruction. indeed;
most criticism of the peace is based
RESPONSIBLE for things which must be
charged directly to the war.
Beyond all question, il the Germans
refuse to face the situation, Germany
will be the first nation to be ruined
and her recovery will be far more diff
ficult than that Of any other country
because her ruin will be more COM
plete than that of any other.
But the United States and Great
Britain are gravely concerned in pre-
venting an economic collapse on the
continent of Europe Therefore il
seems that both must consent to pay
the price. which. in my judgment, is
represented by the cancellation Of the
debts owed them by their recent as
sociates and allies on the continent
not. as I have said, as matter OF
sentiment. but rather as a question
of investment. pure and simple. or. if
one prefer the figure, as a matter of
fire insurance.
Copyright, 1920 Mcclure Newspaper Syndicate,