The Washington herald., 1922-09-20
German-French Pact Delays
Settlement, Says Simonds
Declares Greatest Peril in Pathway of Adjust
ment Is Lloyd Georges Ambition
To Achieve Solution.
BY FRANK H. SIMoNDS.

With the passing OF two weeks the
real explanation Of the sudden and
surprising compromise over repara-
tions becomes clear. In reality there
were several circumstances which
! contributed 10 the result but the
most important Is patiently he
agreement between SHINES and NJ.
Lubersac. the latter representing
, the French government, which
seems likely to lead to an actual
contribution By Germany to the
rebuilding of Northern France.
! Actually the situation In this re-
spect Is as follows. France has her
self while relying upon ultimate
German repayment. raised and ex-
pended rather more than s7.000000, :
900 upon the work OF restoring her
devastated regions and caring for the
victims of the war. This effort has
enabled her to rebuild her reads,
railways. canals. to clear her war;
torn fields and put them back into
production. II has also permitted
her to rebuild her more important
Industrial establishments, wrecked by
the war.
But there remains the gigantic task
of building houses for many hundreds
of thousands OF inhabitants OF ten
rava,;ed departments. This work has
been postponed or rather has waited
upon the completion of the more vital
labor Of getting the plant. agricultural
as well as mechanical. into shape.
There was not enough money for both
and the peasant farmers while clear
ing and sowing their fields have con-
tinued to live in dugouts, in con-
crete block houses, in the ruins of
their old homes.
Germany Can supply Material.
The work of clearing the fields was
obviously one which the Germans
could not perform. without displacing
4 French labor: the task OF restoring
the mechanical plants was as clearly
one in which there was little room
for German co cooperation. But when
1t comes to supplying the vast amount
OF material essential for reconstruct
ing homes, Germany can make con-
tributions almost without limit
i The first step in this direction
was made when Louis Loucheur.
then minister OF finance. and the
late Walter Eathenau signed the
famous Wiesbaden agreement. which
provided for an elaborate system of
German production and delivery of
the materials for rebuilding the
homes OF the inhabitants of the de-
vastated area. When went through
the liberated -eEiDns last year a
number OF wooden houses, made by
German firms. had been erected. not
for use. but as an example Of what
Germany would deliver provided
the inhabitants of the area would
accept them.
But the Loucheur- -Rathenau
agreement of Wiesbaden was never
put into operation. partly at leas,
} as a result OF British opposition,
) the British seeing in the totals pro-
vided for an impairment of their
own claims against Germany. not
, for reparations but for war PEN
! sions. And as a consequence, since
Germany has reached the poin,
where there Is no likelihood OF
money payments, the situation
which followed the London confer
ence was one in which the French.
having restored their fields and
factories at their own expense
were threatened with the task OF
rebuilding their homes.
wouh Have seized Ruhr.
In this state Of affairs it was GER
tain beyond any debate that. so far
from agreeing to any moratorium
for the Germans. the French were
prepared to set their armies in mo-
tion and seize the Ruhr and such
other German possessions as Nigh,
have at least a small value The
fact that France has raised $1,000.
00G 900 and must raise at least ss..
-
while Germany. which had escaped
invasion. contributed nothing ano
meant to contribute nothing, pro-
duced such a feeling in France tha,
Poincare would have fallen, had he
agreed to a moratorium
At the eleventh hour, however
the situation was saved by two
things. In the first place all that
Germany Is required to pay during
the balance of the present year
amounts to little more than $50
100000. and all OF it is allotted to
Belgium. which has priority for
payments up to certain point ir
recognition of her peculiar services
to her allies in the first days of the
conflict. Therefore, while the con.
sent of France was nominallv re-
quired before there could be a
moratorium, France was not con-
cerned financially. provided Bel
gium and Germany could reach ar
agreement as to the matter of the
S50.OO0.O00. II Germany could gel
Belgium to extend the time or take
something beside cash, France
stood to lose nothing.
On the other hand. if a mora
torium were established this would
set up precedent and might affact
the French position after the rnd
of the year. when the larger portion
OF later German payments would go
, to the French. France. therefore,
opposed the moratorium, which
Britain advocated. but she listened
to her Belgian allys request :hat
the Gcrman-Belgian account might
be settled on terms satisfactory 10
Belgium even if these terms post
poned German payment and thus
technically put Germany in default
and made her liable to military or
other Constraint.
So bitter had French opinion he
come. however. that even this linz
ited postponement of action on the
part of France would have been to-
tally Impossible il it had not bee,
: accompanied by very clear and
oefnite proposal such the Stinnes
offer constitutes. As it stands now
we are to have something like six
months of peace from reparations
crises. Provided Germany satisfies