Evening star., 1921-04-30
ALL|ESARE WILLING
TO TRANSFER DEBT
Would Gladly Put Obligation
on. Germany's Back if
U. S. Consents.
BY DAVID LAWRENCE.

Although the United States govern
ment has thus far avoided any COM
ment on the merits OF the latest Ger
man proposal on reparations. there is
one paragraph in the note upon which
the allied governments would like an
answer from Washington. be it Off
cial. unofficial, informal, oral or
couched in any other diplomatic
language available. 1t is the para
graph in which Germany formally ex-
presses her willingness to assume the
allied Indebtedness to the United States
approXimating ten billion dollars. Ger
many says on this point:
I'm case the United States and the
allies should SO desire. Germany
would be disposed to take over to the
limit of her capacity the payment of
the allied obligations to the United
states on account of their debt to the
latter
Have Always Been Willing.
The allies are perfectly willing
They always have been. They would
gladly transfer the debt they owe the
United States to the backs Of the Ger
mans. The preceding administration
agreed to submit a similar proposition
with respect to the Belgian debt. but
1T has never been acted upon by our
congress. Now the question arises
whether the German suggestion meets
with the American governments ap-
proval.
The allies have insisted that the
United States in transmitting any
German proposal acquired certain
responsibility for the fulfillment by
Germany of her promises. Now it is
declared if the United States trans
mits the German note as "a suitable
n 10 fS<,r, ..A
admits that she will consider the
transference of the allied debt owed
ASherlca to the Germans for payment
Sentiment Against Transfer.
Sentiment inside Congress is strong
ly against any such transference, and
President Harding has been known to
hold the view that the foreign loans
made by the United States to the allies
were a valued asset. There isn't the
slightest chance of America agreeing
to the German proposal for transfer
cnce of the debts. even though the al
lies may SO desire. On the other hand,
can American avoid saying so and thus
puncturing as unacceptable at least one
clause in the German reparation pro-
posal?
That's the question which is being
discussed among diplomats, and it
would not be surprising if this par
tlcular dilemma had as much to do
with the hesitation of the Department
of State to forward the German pro-
pcsals to the allies as the apparent un-
Willingness of the allies to receive the
German note at this time.
The more the situation deyelops the
more the allied governments are pleased
with the apparent recognition by the
Washington administration that the
problems of the world, particularly
reparation, cannot be avoided by Amer
lea. The passage of the Knox resolu-
ton declaring a state of peace with
Germany comes at the very moment
when Secretary Hughes is hoping the
influence of the United States may be
properly eXerted for the resumption of
negotiations over the entire reparation
question. In fact. he is in the position
Of counting new proposals from Germany
winch he may present to the allies
After the supreme council has acted and
France has ordered her troops into the
Ruhr valley such proposals will unques-
tionably be made by Germany, and the
discussion will proceed. Germany is not
in position to resist. She therefore
must continue to bargain, negotiate, dis
cuss and finally yield.
U. S. Expected to Have Voice.
Reparation negotiations probably
will go on for several weeks and ulti-
mately the allies expect the United
settlement. Few of the diplomats
here see how the United States can
maintain silence while her biggest
debtors arrange for payments with
Germany which may affect the export
trade of the United States.
It was the determination of this ad-
ministration to keep out of European
affairs as much as possible. But
events are much more compelling
than it ever seemed they would be
when the political campaign was in
progress last summer. The Harding
administration finds foreign affairs a
thorn in the side of every attempt to
concentrate on domestic problems.
Copyright, 1871