The New York herald., 1921-07-04
HUGHES PEACE PLAN
READY FOR HARDING
Not a Word to Be Said Until
President Returns and
0. KS Programme.
MANY STEPS TO BE TAKEN
Trade Relations Already Re-
sumed, but a Treaty Will
Have to Be Negotiated.
MANY STEPS TO BE TAKEN
Special Despatch to THE NEW YORK HERALD.
New York Herald Bureau,
Washington, ID. c.. July 3.

Special Despatch to THE New YORK HERALD.
New York Herald Bureau,
Washington. ID. c.. July 3.
Confronted with an unprecedented
situation--a peace brought about by
Congressional declaration in advance
Of treaty srrangement--the Admins
tration is considering the next step
which shall put into effect what has
been declared in words.
From Secretary Of State Hughes
comes the word that nothing is to be
said as to what the next step will be.
The President has not returned from
his trip to Raritan. In Senatorial cir
cles there Is equal reticence, due to the
waiting attitude which that body has
assumed.
Secretary Hughes has been working
for weeks in preparation for this mo-
nent. His task is not entirely COM
pleted. but its general outlines are
known TO lie drawn. The plan will
await the final approval Of the Presi-
dent before announcement.
What is TO happen now that status
Of peace has been legally restored by the
signature Of President Harding to the
Knox-Porter peace resolution can be
assumed only from what already has
been intimated. The President in his
inaugural address made II plain Il was
the plan of the Administration 10 'en-
gage" under the Versailles treaty II
- -
It has been officially explained that
the first step after the declaration
of a state OF peace. would be the negotia-
tion Of treaty of amity and commerce.
Just how this will be done Is part of
the plan which the Administration is
guarding. A state OF peace naturally
presumes the resumption of full diplo-
matte relations. That would mean the
exchange of ambassadors the opening of
consular offices long closed. the re-
sumption of exchanges by post and tele-
graph and the interchange OF passports.
However, It Is customary in resuming
diplomatic relations to proceed slowly.
At present the United States Is repre-
sented in Berlin by commissioner in
the person OF Loring Dressed. The Ger
man tONeIHIlcnt may sctlu ~ toiiHtiio-
sioner here. It is also possible that the
United States may place a charge daft
faires In control OF its interests at Ber-
lin. and the German Government would
then probably do likewise in Washing
ton.
Commercial relations have been in op-
Grafton for some time. and posts and
telegraph have been working between
the two countries.
The peace declaration makes IL clear
that property seized here during the war
Is not TO be returned until the German
Government makes good losses to this
country and to American citizens. That
probably would be arranged In the treaty
Of amity and commerce which II is pro-
posed IN negotiate.
The Peace Declaration also indicates
a demand for the most favored nation"
treatment OF this Government, which IL
insured against undue trade advantages
being taken by the allied countries IN
their relations with Germany. II is
also insurance against any effort on the
part OF Germany 10 avoid complete sat
isfact!on OF the American claims.
Singularly enough. nothing has been
indicated by the German Government
regarding the matter in which II will
respond to this Governments efforts to
resume peaceful relations on a legal
basis. II IL barely possible that the
Germans will make cae more effort to
muddle up the reparations question BY
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