The New York herald., 1922-12-30
SECRETARY LAYS BLAME
ON POLITICS OF EUROPE
Continued from First Page.

Continued from First Page.
be a first charge upon the amounts
paid by Germany. Others have been
paid and we have not been paid.
but we are not seeking general rep
arations We are bearing our own bur-
den and through our loans large part
of Europe's burden I'm addition, No de-
mands of ours stand In the way of
proper settlement Of the reparations
question
"Of course, we hold the obligations
of European Governments and there
has been much discussion abroad and
here with respect to them. There has
been a persistent attempt ever since the
armistice to link up the debts owing to
our Government with reparations or
with projects of cancellation.
This attempt was resisted In a de-
termined manner under the former Ad-
ministration and under the present Ad-
ministration. The matter is plain
enough from our standpoint. The ca
pacity of Germany to pay Is not at all
affected by any Indebtedness OF any of
the Allies to us. That Indebtedness does
not diminish Germany's capacity. and
it's removal would not increase her ca
pacity.
For example, il France had been
able to finance her part in the war with
out borrowing at all from us-that is,
by taxation and internal loans-the
problem of what Germany could pay
would be exactly the same. Moreover,
so far as the debtors to the United
States are concerned they have unset
tied credit balances, and their condi-
ton and capacity to pay cannot be
properly determined until the amount
that can be realized on these credits
for reparatlons has been determined.
Attitude Toward ReparatIons.
But what Is our attitude toward
the question of reparations. standing as
it does as q distinct question and as
one which cannot be settled unless the
European Governments concerned are
able to agree?
1--WE have no desire to see Germany
relieved of her responsibility for the
war or of her just obligations to make
reparation for the injuries due to her
aggression. There is not the slightest
desire that France shall lose any part
Of her just claims.
"On the other hand, we do not wish
to see n PROSTATE Germany. There can
be no economic recuperation in Europe
unless Germany recuperates. There VIII
be no permanent peace unless economic
satisfactions are enjoyed There must
be hope and industry must have prom
ise of reward If there is to be pros
perity. We should view with dlsfavor
measures which instead of producing
reparations would threaten disaster.
"Some of our own people have sug-
gested that the United States should
aseumeNthe role OF arbiter. There is one
sufficient answer to this suggestion and
that is that we have not been asked to
assume the role Of arbiter. There could
be no such arbitrament unless It were
invited, and 1t would be an extraordinary
and unprecedented thing for us to ask
for such an invitation.
Sees Big Responsibility.
'I do not think that We snould en-
deavor to take such n burden of respon-
sibility. We have quite enough to bear
without drawing to ourselves all the i'll
feeling which would result from dlsap-
pointed hopes and a settlement which
was viewed as. forced upon nations by
this country. which at the same time is
demanding payment of it's debts.
But the situation does call for n set
tlement upon it's merits. The first con-
dition of a satisfactory settlement is
that the question should be taken out of
politics. Statesmen have their difficult
ties, their public opinion. the exigencies
be hoped that they will effect a settle
ment among themselves and that the
coming meeting at Paris will find So
luton. But IL It does not, what should
be done?
1.-THE alternative Of -forcible measures
to obtain reparations Is not an attrac-
tive one. No one can foretell the extent
Of the serious consequences which might
ensue from such n course. Apart from
L.ft AZ
of experts is that ouch measures will not
produce reparation payments, but might
tend TO destroy the basis OF those pay
nents which must be found In economir
recureration.
'If. however. statesmen cannot agree
and such an alternative Is faced. wha.
can be done? Is there not another way
out? The fundamental condition is that
IN this critical moment the merits OF
the question. as an economic one, must
alone be regarded.
Sentiment, however natural. must be
disresarded mutual recriminations are
OF no avail reviews OF the past, whether
accurate or inaccurate, promise nothing
assertions of blame on the one hand and
excuses on the other come to naught."
Must BE Some Way out.
Mr.. Hughes continued:
There ought to be n way for states
men TO agree upon what Germany can
pay. for no matter what claims may be
made against her that is the limit OF
satisfaction. There ought TO be q way
to determine that limit and TO provide a
financial plan by which immediate re-
suits can be obtained and the European
nations can feel that the foundation has
been laid for their mutual and earnest
endeavors to bring about the utmost
prosperity 70 which the industry OF their
people entitle them.
'If statesmen cannot agree and exir-
encles OF public opinion make their
course difficult. then there should be
called to their aid those who can point
the way TO a solution.
why should they not invite men Of
the highest authority in finance In their
respective countres--men of such pres
tge. experience and honor that their
agreement upon the amount to be paid
and upon a financial plan for working
out the payments would be accepted
throughout the world as the most au-
thoritative expression obtainable?
Governments need not bind thcm-
selves In advance to accept the recon-
mendations, but they can at least make
possible such an inquiry with their an
proval and free the men who may rep
resent their country in such commits
sion from any responsibility TO foreign
offices and from any duty 10 obey po-
lltical instructions In other words. they
may invite an answer to this difficult
and pressing question from mon Of such
n N s4fr