Omaha daily bee., 1921-11-21
Harding Expected! !
TO State U.s. syn ~.
In Reply to BRAND
Presidents Statement Will be
Aimed to Calm French Ap.
prchensions Toward
Germany.
By HENRY WALES.
hicago Tribune Omaha Bee Leased Wire.

Washington, Nov. ZO.-An cx-'
ecutive statement from Prcsidcn,
Harding is expected in reply TO Pre-.
mier Brands speech on land arm.
aments tomorrow, exposing Frances
special position" in Europe.
The response of the chief exccu-
tive OF the United States govern.
ment may not be forthcoming for
several days, hut in well informed
quarters it is believed that Frances
appeal will not so unheeded.
M. BRAND will point out the neccs-
sity OF France, alone, maintaining a
large army 20 protect itsel. from
Germany, with twice its population,
and as a safeguard against bolshc-
vism, with Poland continually r!en-
aced.
Mr.. Harding's statement, It is be-
lieved, will closely follow the phrase
ology OF Senator Knox's provision in
the original draft of the German
American peace resolution which
was stricken out of the instrument as
adopted by congress,
The president believed that the
statement should emanate from him
as chief executive and should not be
part OF the act Of congress.
Warn Against Breach.
Americas statement, which will
be aimed to calm French apprehen-
sions toward Germany, will be
couched in generalities and assert
that any aggression against the
peace and security of Europe will
be regarded as an attempt against
the peace and safety of the United
States.
Such statement, it is under.
stood in French circles, will be en-.
tirely acceptable to M. BRAND and
the French government, and will
pave the way toward further mate
rial reduction in French land forces.
Refundinz Of the foreign war
debts, Of primary interest to France,
would be favorably considered by
the United States government, it is
understood, II as a result Of the exc
cutive statement drastic reductions
in the cost Of maintenance of the
French ARMY were made.
1t is recalled that the defici. in
the French budget, due largely to
the tremendous expenditures for TIE
army, are tw'te the amount OF the
annual interest on loans due to the
United States.
Interest Payments Due.
Payment of interest on the war
debts cannot much longer be ig-
nored by congress, it is realized in
the State department, but no effort
to secure easements or lessen the
enormous interest charges could be
dared unless public opinion were
assuaged with facts concerning re-
duction of armand, IS among the
creditor nations.
1t is believed that all extra point
of interest might be added and COM
pounding definitely abandoned, but
no hope is held out for revaluations
Of foreign debts as result of depre-
ciated European exchange rates.
Inside information from American
quarters also indicates that unless
some argument on principles regard
ing China's sovereignty is reached
by the nine interested powers rep
resented at the conference, Secre-
tary of State Hughes will lose an
other thunderbolt similar to his
5-5-3 plan.
The United States government will
announce publicly its readiness to
abandon all preferential rights in
Chinese customs duties and its aban-
donment of extra territorial privi-
leges, if the other nations follow suit.
America Took Lead.
1t is recalled that the United States
took the initiative in foregoing extra
territorial rights in Japan and that
the other powers which had shared
this privilege, emulated its example
without loss of time.
American economic experts re-
gard the customs problem as the
key to the solution OF the far eastern
question which is embodied in
China. Cancellation of agreements
limiting customs to 5 per cent and
increase Of these duties to 20 or Is
per cent would, it is stated, give the
Chinese government the funds so
necessary to the establishment OF
credit and maintenance of order
within its confines.
Normal and just import and ex-
port duties would yield the Chinese
government approximately S120,000,-
OO0 annually, instead of S25,000000
under the present regime.
simultaneously with the increase
in the Chinese tariff is necessary
the elimination of the "Likin" or
internal duties inside the Chinese
empire. The "Likin" permits the
various provinces and cities through
out China to levy their own indi-
vidual duties and taxes on all ar
ticles inside their territory and in
creases the actual import costs paid
in introducing foreign commodities
to the Chinese market, to a figure
erf.al fhot Yec,,i.,or frar, u,,,,,.,,DI,.r,