Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1921-02-23

WASHINGTON. Feb. 22-President
Wilson cleared his desk today of an
olher matter growing out of the Paris
feace conference by sending to con-
Sress a copy of an agreement which he
ana the British and French premiers
entered into June 16, 1919, and under
which the signatories bound them
selves to recommend acceptance of
German bonds in full payment of loans
made to Belgium prior to the armis-
rice.
The president presented recommen-
cations that congress enact legislation
which would enable the American
treasury to accept German bonds TO
the amount of S171, 100000, the amount
OF this country's loans to Belgium up
20 the armistice. plus interest. The
agreement and recommendations were
read in congress without comment.
Neither house took any action.
The executive made no explanation
- TO why the agreement had not been
submitted earlier, except TO say that
the reparations commission has not
yet finally determined the details Of
the issuance of the necessary bonds
by the German government" He
added that the agreement was not em-
bodied I'm the treaty of Versailles for
various reasons.
Submission OF the agreement so far
as could he learned. clears the presi-
dents desk of all matters growing oI-
OF the Paris conference except the
treaty of Versailles and the Austrian
and Polish treaties. The Franco
American agreement is in the files of
the senate foreign relations committee.
: In recommending to you that con-
Eress take action on this agreement,
certain facts should be brought to your
attention" said the presidents mes
sage to congress
The neutrality of Belgium was
guaranteed by the treaty of London
OF 1889. In considering the reparation
10 be made by Germany. IL was agreed
that the action of Germany in violating
this treaty obligated the German gov
crnment under international law to re-
pay to Belgium the costs of war.
The treaty OF Versailles provided that
in accordance with Germanys pledge
given for the restoration of Belgium,
Germany should undertake In addition
10 the compensation for material dam
noe tn make reimbursement of aQ
sums which Belgium had borrowed
from the allied and associated govern
ments mp to November II, 1873, to-
rether with interest at per cent. This
obligation was to be discharged by a
special issue of bearer bonds of an
equivalent amount payable in golo
marks May /, 1926. or N the option OF
OF May in any year up to 1926.
The undertaking defined in tbs
above letter was not embodied in the
treaty. Belgiums obligations to tho
United States for advances made up L
the slrmistice amounted to approXl-
mately s171, ,00e 900 and 10 England ant
France they amounted, 1 am informed
10 about S164. 700. 900. In view of th'
special circumstances in which Bel
gium became involved in the war ant
the attitude of this country toward Bel
gium it was felt that the United States
might well agree to make the sam
agreement respecting pre-armistic
loans TO Belgium as England ant
Trance offered to do.
Advances made by the treasury L
the Belgium government from the be
ginning of the war to the armistlc
amounted to s171 100000. This prin
,.iDal sum. however, includes advance
OF s499,4OO, made to enable the Bel
rians to pay the interest due Nov. j.
1917. and s1,571.46s.42 to enable tn
payment OF the Interest due May l.
1915 The interest on the advances ha
been paid up to April Is, 1919, the in
ferest due from May 10. 1918, to ths
date having been paid out of treasur
loans for which the United States hold
Belgian obligations which, howeVe
were made after Nov. II, 1918. TIL
latter advance would not come With
the agreement mentioned. Ii, theft
fore. the United States accepts pay
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