New-York tribune., 1922-12-30
Proposes an International
Board for an Impartial
Economic Survey, With
All Politics Eliminated
Harding Assures
US. Participation
Secretary Holds Debts TO
America Not an Issue;
Would Not Bind Powers
to Accept the Decision

NEW HAVEN, Conn, Dee. o.
Charles Z. Hughes, Secretary Of
State, suggested a step toward the
solution Of the reparation problem,
which he regards as the crux Of the
whole European situation, in an ad-
dress tonight at a meeting Of the
American Historical Association
here. It Is the first definite and au-
thoritatiye comment on The situation
to como from Washington.
Men Of the highest authority IN
finance In their respective countries
should be invited, he said, 20 decide
what amount Germany should pay
and how It should be paid. He had
no doubt, he said, that "distin-
guished Americans would be will
ing to serve on such commission.
It hal been suggested, he said,
that II the coming conference o.
premiers in Paris failed 20 find a
satisfactory basis for adjustment OF
reparations, the United States
should act as arbiter. An unanswer-
able objection was, he thought, that
the United States had not been in
vited 70 act as arbiter.
In this situation and IN the event of
the failure Of the Paris conference, Mr.
Hughes suggested the appointment %
an international commission OF hnan-
cIers Of such outstanding prominenes
In their various countries that their
very names would be a guarantee that
their findings would DO based purely on
the economic merits OF the situation.
He said that Il might not be advisable
60 make these hndings compulsory Of
acceptance by governments concerned.
No adjustment Of other dificu'ti ties IN
Europe was possible. he said, until the
question Of reparations had been set
tied. he saw no connection between
this problem Of reparatlons and that
OF the debts owed 10 the United States
BY the Allied nations, since those debts
did not affect IN any way Gemany's
capacity TO pay for the damage wrought
In the war.
Upon the capacity Of Germany 10 pay
rested the solution Of the whole mas
ter problem Of Europe, declared Secre-
tary Hughes. That made Il funda-
mentally an economic problem. ho
pointed out, and "the FIRST condition ot
satisfactory settle.ient Is that the
question should be taken out Of
politics"
Statesmen ought 20 be able to agree
upon the capacity Of Germany 70 pay,
he acknowledged, but he added that
they we're hampered by personal din
culties, by the deference they felt COM
PEELED to pay 10 public opinion In their
various countries.
In the same address Secretary
Hughes told Of the success Of the
Washington conference for the limito-
tlon Of naval armaments and discussion
OF Far Eastern questions, Jaying: "My
conclusion Is that the naval treaty VIII
stand the test Of analysis and fair
statement, taking oil the pertinent
facts into consideration and that Il viii
be a desirable safeguard and not =
menace 70 our security and az tho sare
time an important assurance OF peace.
These happy results will be attained,
however, on the condition that we act
toward other nations IN the same spiriA'
Of reasonableness and friendship thaA
We expect them 20 exhibit toward US
Hughes's Economic Views
That part OF his address dealing With
the economic situation n Europe fol-
lows:
The economic conditions In Europe
give us the greatest concern. They
have long received the earnest con-
liberation OF the Administration. It
| a idle % say that we are not ID
terested in these problems. for We
are dceply interested from an eco
nomie standpoint, as our credits and
markets are involved, and from a
humanitarian standpoint, a. the heart
OF the American people goes out 20
those who are Ia distress. We can
not dlspose Of these problems By
calling them European, for they are
world problems and We cannot escape
the injurious consequences OF a fail-
ure 20 settle them.
They are, however, European prob
lems In the sense that they cannot
bs solved without the consent Of
European governments. We cannot
consent for them. The key 20 sho
settlement. Is in their hands, not 10
ours.
The crux Of tho European situa-
tlon lies In the settlement Of repara-
tions. There will be no adjustments
Of other reeds, however pressing
until a definite and accepted basis
for the discharge Of separations
claims has been Axed. Il Il futile
/ 10 attempt 20 erect any economic
structure IN Europe until The fSunda-
tion is laid.
aOw can the United States hsip