New-York tribune., 1920-12-15
Recommendation for Two
Year Limit by Agree
ment on War Materiel
Approved by Assembly
British Delegate
Hints u. S. Lags
World Credif Plan to Aid
Weaker Nations 10 Buy
Is 1ndorsed in Council
By Ralph Courtney
Special Gable to The Tribune


GENEVA, Dec. 14.-The League
of Nations Assembly to-day took its
first step toward world disarma-
ment, approving a proposal of Com
No. 6 that all nations agree
not to spend more in the years 1922
and 1928 in preparation for war
than they will spend in 1921.
AS presented to the Assembly, the
report comprised three
provisions relative to the reduction
of ornaments. Two of these were
only resolutions on the subject, and
these were adopted unanimously by
the Assembly. But when it came to
the last provision, which would make
compulsory two-year ban on in
creased budgets, France baked. Her
lead was followed by Poland. Greece,
Rumania, Brazil, Chile, Uruguay,
Siam and Spain. After sharp de-
bate the report was amended to
strike out the compulsory feature,
and, in the form of recommended
ton, it passed the Assembly.
Text of Crucial Provision
The third provision, which precipi-
tated the debate read:
pending the full settlement Of
measures for the reduction Of arma-
ments recommended by Article VIII Of
the covenant, the committee requests
the Council to submit for consideration
of members Of the league the accept
ance of an undertaking not to exceed
for the first two financial years follow
ing the next financial year, the sum
total expenditure on military, naval and
air services provided for in the latter
budget; subject, however, to account
being taken of the following recon-
"First-Any contribution of troops.
war material or money recommended
by the League of Nations with a view
to the fulfiliment of obligations I'M
posed by Article XVI of the covenant
or by treaties registered with the
league.
"Second-E Exceptional conditions mott
fled as such to the league in accord
-
and of Article VIII of the covenant"
This part was separated from the
rest Of the, report, and it soon became
evident from the debate that it could
not be passed unanimously
A. J. Balfour, of Great Britain, sug-
gested under the circumstances that
this resolution should be changed into
recommendation, which, under the
rules, might be passed by a majority
vote. To this Leon Bourgeois, of
France, said:
IF the section Of the report is kept
in the form Of resolution you know
what will happen
Agree Merely to Recommend
After this warning from one of the
French spokesmen an agreement was
reached chat the resolution should be
made recomm endation from the COM
mittee to the Council.
Even in this modified form Bourgeois
voted against the provision. It is un-
derstood that he had received instruc-
tions from his government to oppose
the resolution. Personally Bourgeois
desired to see the principle involved in
the paragraph adopted, and consequent
ly made the su9ges ton that permitted
its passage by a ma ajority.
From to-day's vote it may be assumed
that neither France, Poland nor the
other nations which voted with them
expect to be free from the likelihood
of following out their increase mill
tary programs. Chile is known t. favor
a big navy, and the stand of Brazil and
Uruguay is taken to indicate their in
tention of increasing their armaments
in the next two years.
One surprise of the day was the vote
of Japan in favor Of the resolution, al
though it is known that Viscount Ishii
m. de reservations on the subject when
it was under conside ration in commit
tee. However, it was pointed out by
delegates from several nations and by
President Hymaps himself, that the
recomme endation i'm piled no oledge on
the part of members of the league to
carry out the provision unless their
government so desired
World Credit Plan Adopted
The League Council adopted a report
on international credit which is de-
signed to facilitate the purchase Of
goods by impoverished nations. The
scheme is that proposed at the Brussels
conference by Dr. Ter r-Meulen, of Hol-
land.
Firms in countries where exchange
values are low will have facilities for
getting from their governments gold
bonds issued by the league to serve
as collateral securities for purchases
abroad. These will not be negotiated,
but will merely form an additional
pledge of the firms credit Bonds will
be issued under the auspices of the
league and will be secured by easily
mobiiizable assets, such as customs
duties and other taxes. The amount
of bonds issued will be controlled. but,
generally speaking, any firm desiring
to make purchases abroad will be aple,
if its credit is good, to get these bonds
from his own government in exchange
for mortgages on his property.
This scheme is looked upon with
high favor by the financial experts who
sat at the Brussels conference and
those attending the Geneva confer,
ences. 1t is said that these bonds will
give an enormous impetus TO the pur-
chasing power of impoverished nations
| and thereby help international trade.