Evening star. [volume] (Washington, D.C.) 1854-1972, 1921-02-04
State Department Loath to
Act Because of Early Ad-
ministration Change.
'CAVEAT' WOULD PROVOKE
INQUIRY AS TO POSITION
U. S. Memoranda Already Filed
With Allies Show Proposals Are
Regarded as ''Preposterous."
BY DAVID LAWRENCE.

The United States government is
considering whether or not it shall
file a legal protest against the repara-
ton settlement proposed by the al
lies to Germany.
Behind the indecision Of the State
Department in the matter-for it is
fact that officials are in quandary
as to what should be done-is the
best illustration that has yet come to
the surface of the embarrassments
that accrue from change OF admin
istration in the United States without
some measure of co-operation-even
unofficial-between the incoming and
the outgoing administrations.
The customary way to protect and
safeguard American rights in any
transaction in which government
may be unprepared to argue case is
to file a "caveat," or legal warning.
which is in the nature of a notice to
all concerned that exception is taken
to the negotiations, and that views on
the question will be filed separately
and at later date.
Europe Likely to Inquire.
The trouble about filing such a
"caveat," however. in the present case.
is that American officials fear that Eu-
rope will promptly ask for America s
position on reparation and State Depart
ment officials are unwilling to say any
thing that might be a handicap to Presi-
dent Harding after March 4.
1T may be that President Harding
will approve the reparation settlement"
said one official. I'VE don't know any
thing about the views of the next ad-
ministration or its desires"
On the other hand. the Wilson ad-
ministration has made clear it's position
again and again in memoranda filed with
thnv~n aC. nfrkN
row in the minds of the European states
men that the present administration con-
siders the proposals just made to the
allies as "preposterous' and impossible
of fulfillment.
No American MT Meeting.
Another interesting angle to the ques-
ton is the fact that European govern
ments asked the United States to send
an ambassador to attend unofficially the
council in Paris at which the repara-
tion settlement was agreed upon. Presi-
dent Wilson declined to permit an
American representative to sit In the
council because america had not rati-
fed the very treaty under which it was
proposed to collect reparation; ;.
1--WE can't eat our cake and have 1t,
too" continued a high official Of the
department today. I'VE cannot ask for
rights under treaty which We have not
even ratified"
One fortunate thing. however. in the
situation is the prospect that Germany
will decline to accept the settlement and
that the whole matter may be under dis
cussion when the new administration
comes into power. The speech in the
French parliament Of Andre Tardieu,
formerly French high commissioner to
the United States, in which he took the
BRAND ministry to task for Fastening
a settlement before President Harding
could take the oath of office in Wash
ington, is looked upon here as the be-
ginning OF a better understanding in
Europe that without American co-opera-
ton the entire reparation settlement
may fall to the ground.
Credit Here Needed.
For, unless the moral support of
the United States government Is back
of the settlement, our officials believe
it will be impossible for the allies to
use reparation bonds in their finan-
cial transactions with the United
States, either as a basis of credit in
support Of foreign loans past or fu-
ture.
| The more the terms Of the repara-
| tion proposals are studied the more
officials here are beginning to feel
that the entire proposal will collapse
unless radically modified. In the
meantime. however. opinion is divided
| as to whether the United States ought
to file a legal exception to the allied
proposal 50 as to form the basis for
| an effective protest later on in :he
event that the II per cent export tax
shall operate to the disadvantage Of
American trade and industry.
Copyright. 1921