The Washington herald., 1922-07-09

breach between Britain and France
has served to give new force to the
sentiment in favor of a return to the
isolation of the Victorian era. Two
lines Oh policy have more and more
clearly presented themselves; the first
4 continuation of the recent method.
carrying with 1T enduring intermixture
in European affairs, the second look
ing to a retirement from Europe and
the cultivation of closer commercial
and other relations with the White
Dominions and with the United
States.
The arguments for further inti-
mate relations with the European
Continent are based, of course, on
the double issues of politics and of
commerce. Today the single British
policy with respect of Europe turns
upon the necessity to restore the
ante-war markets and thus relieve
the British unemployment crisis,
which remains disastrously acute.
To get back the Russian and the
German markets is the objective of
all recent British foreign policy.
Fatal step At Paris.
On the whole this policy has so
far little success. At the original
Paris conference Lloyd George made
the fatal mistake of accepting terms
which in themselves forbade speedy
economic recovery. He had recently
conducted a political campaign on
the single issue OF making Ger
many pay: therefore at Paris he
was condemned to reject the Amer
lean policy of moderation and to
insist upon reparations terms which
are responsible for most of what has
since happened.
The true British interest is to
see reparations fixed at the lowest
possible figure, that the economic
recovery and the consequent res
toration of foreign markets might
come without delay. AS for her
self. Britain could not afford to ac-
cept German indemnity, because
Germany could only pay in goods.
and to accept the goods meant TO
shut down the British factories
which themselves produced such
goods.
Reparations Delay Recovery.
Moreover. the second concern of
the British was political: unless
German reparations were placed at
a low figure. that is. at a figure
sufficiently low to insure German
payment. then nothing was more
certain than that France. once she
had obtained the approval of her
alliaS har
upon collecting this bill by force
of arms. if necessary. And such in
sistence meant not only the post
ponement of economic recovery. 1t
meant raising a military question.
the possibility of French military
supremacy on the continent. which
Britain did not desire.
Captive to his election pledges.
however, Lloyd George at Paris
agreed to the fixation of repara-
tions figures. which instantly be-
came and remain the one endurine
barrier to economic recovery. Near
ly four years after the armistice.
the British unemployment total aplE
proXimates 1000, 900. and, aside
from relatively minor fluctuations.
this figure has been constant for
the past two years.
Disappointment in America,
Meantime Lloyd Georges whole
continental policy has been summed
up in a frantic effort to undo his
Paris mistake. Doubtless he hored
at Paris that the passage of a little
time would make possible a read
justment of reparations figures:
certainly he counted upon Ameri-
can presence to support him in such
an undertaking. once his own cleo
tOrate had cooled down and for
Soden rfs foolish election pledges.
But America. having offered wise
advice which had been rejected.
went home, and George was left
alone to face Europe and par
ticularly a France, with very diff
ferent ideas.
Now at the end of three years.
reparations figures have not been
reduced and French hostility to
any reduction remains adamant.
Meantime France has demonstrated
her purpose to retain her army as
a means of insuring German pay
ment, and the possession of the
army has given France the domi-
mating position on the continent.
Today France can occupy any part
of Germany she may choose and
there is no military force to hold
her back.
Germans OutwIt Allies.
Meantime Germany, rather than
pay. has gone into voluntary bank
ruptcy: she has sent much of her
capital out of the country: she has
enormously inflated the costs of
administration. AS a consequence
her currency has fallen to un-
dreamed-of levels. As conse-
quence she cannot buy and she
does undersell. In both ways Brit
ish trade is injured. So far, too, all
effort to bring about a readjust-
ment Of reparations has led to
Anglo-French bad feeling but to no
tangible results.
1t is the same with Russia. In
the beginning Lloyd George Joined
with France in an effort to upset
the Soviet government by backing
the various anti-Bolshevist leaders.
But these efforts failed and then
Lloyd George. tardily, undertook to
persuade France and the rest of
the world to go rapidly to the
other extreme and recognize the
Reds. In this he failed. not alone
or chiefly because of France, but
because the United States stood
A1e