New-York tribune., 1921-03-13
Dollar Seen as
Hope Of Allies
For Indemnify
J. F. Dulles, Former Peace
Commission Counsel, Says
u. S. Trade With Germany
Is Solution of Problem
Outlines Europe's Case
Asserts England and France
Fear Undermining of Own
Economic Reconstruction

John Foster Dulles, formerly counsel
to the American peace commission and
member Of the Reparations Commission
and the Supreme Economic Council, yes
terday declared at luncheon Of the
League of Free Nations Association,
held in the Hotel Commodore, that the
Allies wanted German reparations to be
in the form of American dollars.
Mr.. Dulles explained this by pointing
out that the Allies were unwilling to
accept the reparations provided for by
the Versailles Treaty in the shape Of
German machinery, German coal, Ger
man ships and German labor because
their own economic reconstruction would
be endangered in one way or other by
these things.
Great Britain, he said, does not want
any more shipping from the Germans
because its own ship yards are becom-
ing idle. France is willing to take all
the coal that Germany is able to mine.
he said, but the coal men of Great
Britain are opposed to this because it
would pull down their rates and mean
the loss of large coal customer.
France, he declared, is not taking Ger
man machinery because it would have
TO get spare parts and replacements
from Germans, making them dependent
on the latter, and the French labor
unions refused to permit the admittance
OF German laborers offered by the Ger
man governpeat for purposes of recon
struction. He added also that the Allies
declined the German offer to give them
Investments in German industry because
it was felt that too much interest would
be taken in Germany's commercial de-
yelopment.
Allies Want Cash Reparation
What the Allies want" he said. "is
reparation in the form Of cash. If we
pay American dollars for German
goods and labor the Allies would be
willing to take this money as part of
the reparation payment"
MY. Dulles was skeptical as to vheth-
er the United States would be willing
to play this role and, commenting on
the speech by Frederic Il. Coudert, the
international lawyer, who had preceded
him, said that the question was not
so much one Of whether Germany must
pay or was able to pay, but rather how
nauch the Allies were able to accept
FROM Germany by way Of payment
without endangering their own indus
trial stability.
Discussing the Allied debt OF $15,-
100000, 900 to the United States, Mr.
Dulles limited that this money might
never be repaid when he said that "the
Allied Indebtedness TO US shows that
the United States before we went into
the war was engaged in superhuman
effort to pour into Europe the materials
of war. These debts could never have
come into being under normal condi-
conditions which created them.
Opposes New Hurricane
"a hurricane" he continued. "has
swept the world. We survey its raw
ages with sorrow. But do not let us
that everything will be restored if we
only get up a new hurricane, provided
that it blows from another direction"
He asked that his remarks be not
construed as q criticism OF the action
of the Allies in occupying German
territory, adding: Germany must pay,
and l am sure that the Allies will see
that it pays. 1t must be done calmly
surely and dispassionately
Mr.. Coudert said that Germany must
pay the reparation demanded by the
Allies; that she was capable of pay
ing: that she would only pay when
forced to; that Germany must be kept
down because. her rehabilitation would
mean that the Latin races would again
face destruction, and that she must
realize that she has suffered ignomini-
Gus defeat.
Preparation" he said, sis question
Of how far can the nation which com
mitted the most atrocious sins ever
committed against humanity, pay. The
systematic destruction by Germany
never can and never will be ccmpen-
stated for. The sums that have been
fixed by the Allied Council have been
fixed after careful delberation with
experts. 1t is fair to assume that they
are righteous sums. We cannot trust
German representatives when they are
acting in their own interests. | am
satisfied that Germany can pay the
sums demanded, but that it Won't
pay unless forced to. The only COM
mon solution of the problem will come
from force backed by morality, and not
force alone"
Pleads for United Front
Mr.. Coudert said that the most de-
sirable thing Of all in treating with
Germany, however. was to see to it that
the Allies and the United States pre-
sented a united front on all occasions.
John Foster Bass. war correspondent,
was also of the opinion that the Allied
Indebtedness to this country would
never be paid but suggested that it be
employed to bring about disarmament.
He declared that there were more SOL
diers in Europe to-day than there were
before the war. He added that che
looked with misgivings on the advance
on the Rhine and said that il could
result only in the realization by the
French people that there was no money
in Germany.
S. X. Ratclife, American correspond
ent Of The Manchester Guardian, urged
less attention to newspaper and politi-
cal talk about the facts of the interna-
tional situation" and more attention to
the millions of humans slowly dying in
Europe because Of diplomatic inaction
and stupidity
L. y