Evening star., 1922-01-07
|EUR0PE'S' 'SELF7A|D
POLICY IN us.
Lloyd Georges Speech Rec.
ognizes Americas Position
on Economics.
BY DAVID LAWRENCE.

Economic reconstruction in Europe
cannot come too soon to please the
United States government, and while
the issuance Of an invitation to
America to attend the big economic
conference to be held in Genoa, Italy.
implies very little at this time, never
theless opinion is crystallizing that the
real plan for world relief must come
out of French and British diplomacy.
Prime Minister Lloyd Georges en-
phasis on the necessity of Europe help
ing itself without depending too much
on America is looked upon here as a
direct sequel of the Washington con-
ference. The British representatives
here have not failed to keep the prime
minister posted on the official view Of
the American government, and 1t Is
significant that in the very first speech
he has made to the supreme council
he has recognized the practical aspect
of Americas position. and urged the
French and other continental nations
TO get together on a European plan
that will merit outside support.
The British government was told in
formally not very long ago by Secre-
tary Hoover what seemed to be essen
tial to economic reconstruction, apart:
of course, from the vital question OF
reduced military and naval ornaments.
Mr.. Hoover expressed his views orally
at first and then summarized them IN
writing for the British as follows:
Outlines Need OF States.
Economic recovery of the states in
eastern and southeastern Europe (and
consequently a considerable fraction of
our own and of world commerce) is
dependent upon each state erecting:
Il. A balance in taxation and ex-
penditure.
j "2. Currency reorganization and
"S. Wise control of their exports and
imports.
"a. Credits for reproductive pur-
poses.
1T is hopeless to expect that private
capital will extend credits for exports
! to these states upon any systematic
basis until the first three have been
complied with. Furthermore, attempts
to secure these three vital reforms by
action through various governments
foreign to them risks being wrecked on
the rocks of conflicting political OBJ
jectives of such governments.
THE Ter Mullen plan proposes to
facilitate credits for exports by the
ordinary processes of business. free
from political action. when these
these three primary reforms have
been initiated This should act as
great pressure to secure the reforms
and if accomplished is at once nine
tenths of the battle for rehabilitation
of credits and commerce with these
states.
More Than Export Credits Needed.
II have the feeling. however, that
something more is needed than export
| credits to these countries if the three
primary reforms are to be accom-
plished-that is, some assistance must
needs be found to these states In
credit for purposes directly of cur
rency reform. l have already sug-
gested in another place that some
action might be taken by the great
banks of issue of the principal coun-
tries looking to formation OF a plan
to facilitate solution of this portion
of the problem: thus again keeping
away from political action in the eco
nomic and financial affairs of each
of these states. Such plan in no
way replaces the Ter Mullen plan. as
the two plans would supplement each
other.
Il may say / believe also that vital
as all such steps are Ito which the
Ter Mullen plan would be an ad-
| mirable contribution.) yet again until
there can oe brought about some
| financial sterilization in Germany. all
other European states will be ad-
versely affected despite every effort
| implied in any of these ideas"
Evolved mt Brussels.
The Ter Mullen plan to which Mr..
! Hoover refers was evolved at the last
international financial conference at
| Brussels, and embraced the listing
of all available assets of the busi-
ness men of each country and the is
suance by governments of certain
bonds against those assets which
would be in the nature of collateral
or guarantee of payment for pur-
chases made in foreign countries.
The plan does not apply either to
Germany or Russia. The dihculty OF
including Germany Is that her assets
are more or less pledged as repara-
tions to France. Similarly on account
politics and the unwillingness of the
| powers to deal with the bolshevik
government trade with Russia mas
been at q standstill.
| The viewpoint here. however. is
closer to that held by the British than
the French. When Mr.. Lloyd George
SAYS that politically he is no more
sympathetic with Germany than ne
was during the war, but that the
amount Germany can pay Is not
sentimental but a practical question,
his IDEAS find a ready echo in Amer.
| ican official circles. The French ana
British have developed strained rela-
| tions on this point, and until the
washington conference produced
deadlock on the submarine issue the
disposition was to take more or less
Indifferent view toward the French
British split. The drift lately has been
to support the British contention that
economic reconstruction can never be
ACCOMPLISHED through political objec-
tiyes. but through material examina-
tion of the economic facts In the
whole situation.