The New York herald., 1921-07-26
WILLPUSH NAVAL
PROGRAMME PENDING
ARMAMENTS PARLEY
, Secretary Denby's Decision
Regarded as Answer to
British and japanese
Naval Activity.
TOXIC REPLY AWAITED
Date of Conference Held in
Abeyance-Mellon Halts
Negotiations as to
Funding Loans.
DEBT URGED AS WEAPON
Borah Would Force Europe to
Halt Warlike Expenditures
Through Pressure for
Loan Payment.
DEBT URGED AS WEAPON
Special Despatch to THE New YoRK HERALD
New York Herald Bureau,
WoshingfOn. ID. c.. July SS

Special Despatch to THE New YonK HERALD.
New York Herald Bureau,
Washington, ID. c., July IS.
There will be no suspension nor
slowing up Of any part Of the naval
building programme Of the United
States in anticipation of the interna-
tional conference on limitation Of ar
maments called by President Harding.
Secretary of the Navy DENLY in
answer to a direct question made a
nat statement to. that effect to-day.
1t was regarded here as the answer
of the United States to the recent an
nouncement Of Premier Lloyd George
In the British Parliament that the
building of four new capital ships had
been authorized by the British Cabinet
Notwithstanding the British accept
ance Of the Presidents Invitation to
the Washington conference.
The Navy Department has informa-
ton that Japan also is feverishly push
Ing ahead her naval programme with
view of getting as much building
started as possible before the confer
ence meets. In view of these naval
activities Of Great Britain and Japan
no other course is left for the United
States but to- push ahead its present
building programme pending possi-
Bile agreement at the coming confer
ence. M
other Develorments.
While Secretary Denby's statement
was probably the most important devel-
opment in connection with the plans for
the approaching conference, there were
others Of hardly less Significance.
Secretary OF the Treasury Mellon
announced that all negotiations with
foreign governments looking to the
funding of their debts to the United
States have ceased and will not be
reopened until about the time the
disarmament conference meets. He
intimated that a reduction Of ex-
pcnditures for armament by foreign
governments would enable them to
pay their debts to the United States
and put the world back on Its feet.
Senator Borah (Idaho). speaking
In the Senate this afternoon. declared
bluntly that the United States should
use its foreign loans a weapon to
compel European ndtiOnS " tuItd
their vast expenditures for armament
The State Department officially
admitted for the first time that Sec
retary Hughes has been In frequent
communication with the japanese
Government concerning the Far East
crn topics that will come before the
conference. 1t was intiInated that
more delay had been encountered, but
that a satisfactory reply from japan
Was expected In few days.
The fixing OF the date and the
sending OF formal invitations to the
conference still await final accept
ance by japan.
100000, 900 for Plane Carrier.
Secretary Denby's statement made it
plain that neither the International con-
ference nor the recent airplane bombing
tests will interfere with the completion
of the 1916 naval building programme.
In addition, Secretary DENLY will ask
for renewed consideration by Congress
of an additional appropriation for con-
struction OF at least one $30.o0o.oo0 air.
plane carrier. That determination is the
result OF the bombing tests which Mr..
DENLY believes have proven the neces-
sity OF this type of vessel.
While that decision was being an
nounccd. opposition to the continuation
Of the battieship programme developed
Ia the Senate. where Senator King
(Utah) introduced a bin for immediate
suspension of battlcship construction.
six battleships are. now under construc-
tion and are about 40 per cent. complete.
To junk them now would mean loss
OF approximately 40 per cent. OF their
total cost. In the opinion OF Navy cx-
perts that would be unthinkable. The
six battleships now under construction
are part of the ten vessels OF this type
authorized in the 1915 building pro-
grammc. The programme also includes
six battle cruisers, which are not so
nearly completed.
Eject Of Dissrma ament.
While accepting the grim necessity OF
going ahead with Its naval building pro-
gramme. the Harding Administration is
anticipating the effect even partial dis
armament would have in enabling the
world to regain u productive basis. That
vas made clear to-day by Secretary
OF the Treasury Mellon In discussing
the question OF foreign loans. He said
no other agency In the world would so
effectively enable all countries to re-
habiiitate themselves. He said any form
Of a disarmament policy that was given
worldwide approval would simplify the
problem OF funding the foreign loans OF
the United States. With tho necessity
removed Of making huge Appropriations
for armaments the debtor nations could
balance their budgets so as to take care
Of, the interest on the debt and under
take curtailment of the principal.
Mr. Mellon explained that all nego-
tIation with the foreign Governments
relative to the allied debt to the United
States had ceased. In view OF the fact
that Congress probably will not pass
the proposed bill giving tine Secretary
Continued on THIRD P1oe