The New York herald., 1922-06-01

not fulfill. AS matter of fact, if any
expectations were raised in France
they would not be attributable TO any
thing We said on that occasion. /
made it clear in my speech at Bristol
that although Germany must be held
morally responsible for the whole cost
of the war she could only be ex-
pected to pay according TO her ca
pacity. and Mr.. Asquith publicly
agreed with that view the very next
day.
CIynes Once Agreed to Terms.
Mr.. Clynes should be the very last
person to complain that we raised
false hopes. for the chief organizer of
the Labor campaign at the general
election said December ., 1918, that
he would support the exaction from
Germany of the fullest possible in
demnity and restitutioa~for damages.
and Mr.. Clynes himself, writing in a
calm atmosphere some months after
the election, said: L cannot see how
we could have done less than impose
these terms on Germany and her
allies and that was after the publi-
cation of our first draft of the terms
to Germany, which later We're con-
siderably modified If we were wrong,
at least let us say that We were all
wrong together. If we all took the
same line and position we took then
We would stand by it now.
This treaty of Versailles imposed
on Germany a burden she coui6 not
Lear, and it was provided that the
| Preparations Commission should esti-
mate the total amount of damages in
flicted by Germany. 1t has to esti-
mate the capacity of Germany 70 pay
not to-day, but must time s-er capacity
TO pay at any given moment. If Ger
many says, This is all can pay the
commission will hear the evidence and
djudicate. That is the machinery of
the Reparations Commission.
"The treaty has been denounced as
being very harsh and as having no
reference to the conditions in Ger
many and German capacity tJ pay.
But that is not the case Au these con-
ditions are provided for in the treaty
cf Versailles. There is no doubt at all
that one fact which upset the ba~ance
of the Preparations Commission and
the League of Nations was the alb
sence of America. When the treaty
was signed it was assumed that the
United States would be represented on
The Preparations Commission ard in
-tils league of Nations.
America's Absence Caused Friction
'The United States of America was
the only country with no claims with
respect to reparations. No adjudica-
ton would affect her own interests
G.cG therefore she was strictly impair
tial Sut she is also concerned in the
great International trade and in seeing
that the reparations should not be
driven to extremes which would upset
the balance of trade throughout the
world. The United States of America
having signed the treaty did not ratify
it, and that is very important mat
ter
There is no doubt that the absence
Aof America from the machinery of the
treaty Of Versailles disturbed it's equi-
poise and made the machine less ef-
fective and made work of less pre-
cision--I will not say with more in
justice-but it has created an amount
of friction that would not have ex-
! listed if the United States had been
Represented in the deliberations of the
g.eague of Nations or of the Repara-
a tions Commission.
For the moment I would say there
is no cause for disagreement between
France and ourselves. J-heers). Mat
ters have been under consideration by
the Preparations Commission tribunal
and the reports l have are very hope
ful that arrangements will be arrived
at which will be acceptable not merely
to the debtor but to the creditor couu-
tries as well. (Cheers.)
The question of remission of war
debts has been raised, and I rather
regret that the proposals put for
ward. outside of one, have not been
brought to the table for examination.
What is that proposal? The proposal
is that Great Britain should forego
The whole of her claims against the
Allies and the whole of her claims
against Germany in order to ease the
international situation. The proposal
put forward the other day was that
England should forgive all those who
owe her debts without obtaining for
ElNeDCSS lot the QeDLS sue owes. lIdl
is a proposal which l really cannot
contemplate.
Cancellation Depends on Others.
IF our share or the German repara-
tions is added TO the amount or debts
cue us from other countries there Is
over three thousand million pounds
due this country. This country owes
something like one thousand million.
The proposal is that we should forego
the whole of the three thousand
million, without receiving remission
Tor the one we owe. No Government
could possibly contemplate that We
ere perfectly willing TO enter any in
ternational discussion to view the OBJ
lgation of the whole of these war
debts, provided we receive a benefit
which is not equal-to that which we
confer.
1--WE have an interest which Is be-
yond our interest as a creditor. We
have Tire interest of a great in,erna-
tional trader. We realize that i- is an
advantage for US to foregc the large
sums of money due us, provided there
is clean slate. tCheers.J But we
cannot possibly contemplate entering
into transactions whereby we would