The Washington herald., 1922-07-23

that the British could not airord
either to take payment or to per-
NIT the German to pay his French
and Belgian creditors. He had al
ways counted upon British aid to
rescue him from payment. His tac-
tics continued to be to avoid pay
ments so far as possible and to ex-
ploit the differences between the
French and the British, growing
out of divergence in material In
terests. He relied upon a British
campaign to reduce and ultimately
to abolish all reparations.
Meantime. the Frenchman had
been persuaded in Paris that there
was no real limit to German ca
pacity to pay. In this view his own
experts had been confirmed by Brit
ish. He had heard Lloyd George
Smuts and w. NJ. Hughes, of Aus
tralia, declare that Germany could
pay both reparations and pensions.
and that she should be made to pay
these. But no sooner was the Paris
conference over than he beheld
British policy rapidly changing
front and asserting that SO far from
being able to pay large sums. Ger
many could pay little or nothing,
and that so far from using force to
compel payment. as Lloyd George
had preached in his campaign of
.t91s, Germany should be allowed to
escape from payment. and that the
use of force to compel payment rep
resented the expression of French
militarism and imperialism.
Spring From Policy.
Actually the worst phases of the
reparations problem spring out OF
the complete volte face of British
policy. If Great Britain at Paris
and since Paris had consistently
advocated a low sum total of repa,
rations even French demands would
have been limited In the first
place Anglo-American arguments at
Paris would have prevailed and the
sum total would have been less
than half what Is was raised to
when Smuts persuaded President
Wilson to include pensions in the
| reparations total. In the second
place. Germany. seeing Britain COM
mitted to support France in coll
lecting these possible sums, would
have had no incentive to follow
her present policy.
As Mr.. Baruch clearly discloses
then, the responsibility for the fix
ing of reparations at an impossible
height is primarily British. Now
in the past three years the British
have sought with ever increasing
energy first. to obtain a reduction
of the sum and. second. to enlist
our support to this end. But in
this campaign they have encount.
| cred French and American repuIses
The French rely upon the British
declarations as made at Paris In
1919 and British signature to the
treaty of Versailles to prove that
Germany can pay. AS for the United
States. We have indicated that we
will not return to the old sea,
at the council table.
Complicated by Loans.
The British situation is compli.
Gated of course by the war loans
Germany owes Francs under the
reparations agreement upwards OF
slf,oOO,OOO,OOO for reconstruction
aad pensions. France owes Grea,
Britain and the United States up.
wards of $1,000, 100000 for wal
loans. She has by domestic taxa
tions raised upwards of $4,000, 900.
900 to meet the costs of reconstruc-
ton and must still raise large sums
Germany has so far paid not one
centime toward the reconstruction
of the devastated area.
To ask France to consent to any
reduction Of German payments to her
while We and the British insist upcn
her payment to US of what she Dor.
rowed for war purposes, is to make
demand which is ridiculous in II.
self and leads TO nothing. The single
possible way to bring about a reduc.
ton of the sum of German repara.
tions is for the British alone or 10,
the British and Americans in CON
junction to agree to the elimination
OF the French debt to those two
countries. Subtract $1,000 900, OOC
from the sum total of German rem.
arations and at the same time can.
eel French debts to Great Britain
and the United States and French
consent Is assured, but not other.
wise.
let British Cancel.
Let the British cancel the Sc. ooo..
100000 which Germany still owes
them on the reparations account and
they frankly concede they cannot af-
Iord TO collect, since II can only be
paid in goods, and you again accom-
pilsh something positive. Let the
British cancel what the Italians owe
them-and the Belgians and p..5uade
the Italians and Belgians to write off
German indebtedness in proportion
and the process goes forward. II
the British should cancel what their
continental allies owe them and what
Germany owes them in reparations
you would by this process alone cut
reparations totals more than a third
British refusal so far to do this
is not based upon any expectation tha,
she will sooner or later collect money
from France, Italy or Belgium OF
that she will ever be able as an ex.
porting nation to import goods in the
vast amounts which are necessary
to pay Off these accounts. No, Brit.
ish policy is dictated by two consid.
erations, while she holds the paber OF
France and Italy she exercises a,
least little influence upon their for
eign policy; moreover, since she owes
America upwards of $4,000, 900, II
Is desirable to persuade America to
cancel this. at the same time that
Britain cancels her loans.
Postpone Adjustment.
So far. although there are signs
that British policy is at last being
driven to separate action, the whole
play has been to postpone any adjust.
ment Of British loans to the conti-
nent and any reduction of British