The New York herald., 1922-12-29
FREE HAND NEEDED
President Declares Com
gress Can Help by Re-
moving Restrictions
on Executive.
HE WRITES TO LODGE
Asserts Congressional Ac-
ton Would Give False
Impression Abroad.
FUTILITY OF PROPOSAL
Removal of Limit on Refund
ing Operations Asked-Sen-
ate Debate Continues.
FUTILITY OF PROPOSAL
'peciaI Dispatch to TIE NEx YORK Iipnn,p.
New York Herald Bureau,
Washington, ID. c. Dec On


President Harding to-day stated his
reasons for opposing the .Borah
requesting him TO call an
economic conference. in
terse letter to Senator Lodge (AIass.),
majority leader, which was read in the
Senate, and Immediately became the
subject of a lively debate on the ma
ture of the negotiations which this
Government is conducting in regard
to the European financial problem.
Not only is the Borah proposal likely
to create the false impression at homo
and abroad that tho Prcsident ana
Secretary Of State are not alive to the
serious situation in Earopc. but It
would be futile, according to the Prcsi-
ent, to suggest such conference until
1t is ascertalned whether II will be
welcome by the nations involved. He
said the state Department has in
formation on this subject which can
not be bulletined every day, but which
is available to Senator'S and Repre-
sentatives IN confidence.
Replies TO senator Lodge.
Following is the text OF the letter:
My Dear Senator Lodge: Reply
ing to your Inquiry relative to the
proposed amendment to the pending
naval bill, authorizing and request
ing the President to call an eco-
nomic conference TO deal with con-
ditions In the war torn nations Of
Europe, | write TO say that / know
OF no prohibition against such an
expression on the part of the Con-
gress. but do frankly question the
desirability OF such an expression.
/ think 1t is undesirable because OF
the false impressions which may be
conveyed thereby to Europe, and
even more undesirable because OF,
the wrong impression it conveys 70
our own people.
On the face OF things. # rs equiva-
lent to saying that the executive
branch Of the Government, which is
charged with the conduct OF foreign
relations. is not fully alive to a
world situation which is OF deep
concern TO tho United States. AS a
matter OF fact, the European situa-
ton has been given most thorough
and thoughtful consideration for
many months.
Without questioning the good
faith of the proposal, am very
sure 1t would have been more SEEM
ly and the action OF the Congress.
could be taken much more intelii-
gently II proper inquiry had been
made OF the State Department reia-
tive 20 the situation in whicH we
are trying 10 be helpful,
OF necessity the communications
OF the State Department relative TO
delicate matters among nations can
not be bulletined from day 10 day.
but the situation is never withheld
from members OF Congress who
choose to inquire for confidential
Information in spirit of coopera-
tlon. such inquiry would have re-
vealed the futillty OF any confer
encc call until It is understood that
such "a conference would be well
coined by the nations concerned
within the limits Of discussion
whioh the expressed will of Con-
gress compels this Governments to
impose.
In ratifying the treaty Of peacc
with Germany. the Senate made a
reservation that tho United States
should not be represented on the
Reparations Commission without
consent OF Congress. and no such
consent has been given. Moreover.
in creating the world war debt fund
ing commission that body was re-
stricted TO explicit terms for rates
OF interest and ultimate time OF
payment.
II Congress really means to ia
cilitate the task Of the GovernmenE
in dealing with the European situa~
ton. the first practical step would
he 10 free the hands OF the COM
mission. that helpful negotiations
may DC undertaken.
II is quite generally accepted that
the adjustment Of the question of
reperations must underlie any eco
nomic rehabilitation Of Europe and
reparations cannot be settled with
out tho consent of Governments
concerned. The United states can
not assume to say to one nation
what Il shall pay in reparatlons.
nor to another nation what It shall
accept.
In discussions with foreign Gov
crnments the previous Adminlstra-
tion and the present Administration
have insisted that the question o.