The New York herald., 1922-06-11

italy for their army costs for that
period have been paid in full (chiefiy
through deliveries of property. and that
the unpaid balance of army costs due
May /. 1921. amounted to 1.660.090.000
gold marks. due to the United States
and the British Empire. as follows:
United States. s66.s47.o0o gold marks.
British Empire. 693,716,000 gold
marks.
1T is understood that between May l.
1921, and December 81, 1921. the British
Government received cash payments as
against this balance of about 130,696, 900
gold marks. In view of the position
taken by the Government of the United
States. this payment was expressly made
and received subject to the rights of the
United States"
Secretary Hughes also said with the
utmost frankness:
1T was with surprise that the Govern
nent of the United States recently
learned that negotiations in connection
with and following the meeting at
Cannes January last apparently con-
tempiated the substitution for the rec
ommendatio of the Army Costs Com
mission of other arrangements which
would ignore the American Army costs
altogether"
On March the Finance Ministers of
the allied countries met in Paris and,
Notwithstanding the attitude of the
United States Government. parceled out
German payments on army occupation
account, ignoring the United States.
Rights Under Treaty.
Secretary Hughes outlined the right
of the United States under the Treaty
Of Versailles as follows:
"The Government of the United States
believes that its right to priority of pay
ment for it's actual army costs upon an
equal footing with the allied Powers Is
not in any way affected by its failure to
ratify the Treaty OF Versailles. The
right of the United States to share in
this priority was not expressly condi-
toned, and in view of the nature OF
the claim and of the fact that the treaty
rurported to create a first charge upon
all the assets and revenues OF the Ger
man Empire II should not be construed
as being conditioned upon the ratifica-
ton Of the treaty by the United States. y
Mr.. Hughes called attention also to
the fact the allied Powers frequently
had urged that American troops be re-
aimed in the Rhine sector.
In answer to the communication of
Secretary Hughes on March % Lord
Curzon, British Secretary of State for
Foreign Affairs, through Ambassador
Harvey. replied on April IL:
IT am anxious to lose no time in as
suring your Excellency that the claims
put forward by the United States Gov
ernment that these expenses be reim-
bursed to them is one which his Maj
estys Government would not in any
circumstances desire to question. II
would be impossible to do so without an
indifference to manifest considerations
of justice and without a failure to rec
ognize the part played by the United
States in the war and the subsequent
occupation, such as / am confident that
your Government would not think OF
imputing to his Majesty's Government.
1T Is the earnest desire of his Maj
estys Government that means should
be found with as little delay as possible
to give practical effect to the desires OF
the United States Government, as ex-
planned by your Excellency, and / an
accordingly placing myself in communi-
cation with the Governments of Franco
and Belgium in the hope that a speedy
agreement may be reached as to the
most convenient method by which the
allied and associated Governments may
concert together to secure the desired
end"
Attitude of France.
On April Ambassador Herrick cabled
the State Department to the effect thai
Premier Poincare had instructed him tc
say:
THAT the French Government is per
suaded that easy and quick agreement
can be come to between the allied Gov.
crnments and the United States on this
question:, and that II Is consulting the
Belgium, British and italian Govern.
ments. M. Poincare adds that he wishes
to inform our Government how much
the French Government appreciates the
cooperation of the American troops with
the allied troops on the Rhine that the
French Government greatly regrets our
Government should have taken the de-
cision to withdraw its troops: theil
presence, while recalling the common
sacrifices, could only contribute to af.
firm in the eyes of the entire world the
essentially peaceful character of the oc-
cupation of the Rhenish territorites."
From Belgium came this note:
IT hasten to inform you that the
Belgian Government has never enter
tanned the idea of questioning the righ
of the United States to reimbursement
for its expenses of occupation"
This unanimity of utterance suggested
the plight Of the boy who had beer
caught in mischief. The allied Gov.
ernments had gone ahead in the dis
tribution of funds from Germany, anc
II was not until the American Govern
ment announced its decision to with
draw all troops that the rush to admi
the business of the American claim oc
! Cured.