The Washington herald., 1922-09-19
German-French Pact Delays
Settlement, Says Simonds
Declares Greatest Peril in Pathway of Adjust.
ment Is Lloyd Georges Ambition
To Achieve Solution.


opposed the moratorium. which
Britain advocated. but she listened
to her Belgian ally's request that
the German Belgian account might
be settled on terms satisfactory TO
Belgium even If these terms post
poned German payment and thus
technically put Germany in default
and made her liable to military or
other constraint.
So bitter had French opinion be-
come, however, that even this lin
tied postponement of action on the
part of France would have been to-
tally impossible II il had not been
accompanied by a very clear and
definite proposal such as the SHINES
OFFER constitutes. As It stands now
we are to have something like six
months of peace from reparations
crises. Provided Germany SATISFIES
Belgium's conditions, and there Is
every sign that she will. there will
be no legal warrant for proceeding
against her for failure to meet the
payments contracted for in the
financial settlement between Ger
many and her conquerors.
Sending Material to France.
In this six months Germany will
have, first of all, to reorganize her
finances, her initiation and set her
house in order against the payments
she will have to make France next
year. If in this time the Lube-sac-
SHINES agreement Is put in force
and by the end of the respite Ger
many is actually sending huge
amounts Of materials to France and
thus making possible the recon-
struction of the homes of the French
Inhabitants of the devastated area.
then neither Poincare nor any other
French statesman is likely to have
reason or support for drastic action
against Germany.
If, on the contrary. Germany does
not meet the French expectations.
II she discloses the same spirit
which has hitherto marked all of
her maneuvers since the signing of
the treaty Of Versailles, France can
act-and she will have lost nothing
actually. because all that Germany
could have paid in money, would
have been paid to Belgium in any
event.
OF course this compromise settles
nothing. 1t only offers Germany
one more chance to do that without
which any settlement is impossible
and postpones the doing of what
would make all settlement unlikely
forever. Assuming that Germany.
under the Stinnes-Lubersac agree
ment, should now furnish all of the
material and some of the labor nee
essary for reconstruction. this
would not reimburse the French for
the $1,000, 100000 which they have
already spent. having borrowed IL
from themselves and 1t would not
meet the problem Of interallied
debts.
Must Settle Debt Question.
On the other hand the way Is
now open again for an effort to
reach an agreement between allies
as to debts. This is what the pro-
posal for a November conference
enVisages. No consideration Of this
question was possible at London be-
cause OF the Balfour note But the
history OF the London conference
demonstrated that there can be no
settlement of reparations which
does not dispose of interallied debts.
The reception of the Balfour note,
particularly in, the United States.
has unauestionably had a profound
erect upon its joint authors, the
Earl of Balfour and the prime min
lister. Neither can longer cherish
any Illusion as to the American
point Of view and both have come
In for pretty sharp criticism at
home. where the comment of Lord
Grey or Falloden has been generally
accepted.
Grey said with great directness
that the Balfour note represented
little thing done when the situa-
tion called for big one and what
was done was done in a little way.
He advocated the cancellation of the
debts owed Britain without regard
TO the course of the United States.
Poincare's caustic response to the
Balfour note indicated perfectly
plainly that France would not pay
her allies until Germany had paid
her. And Poincare was quite as
plain is his indication that France
would hold Germany precisely as
her creditors held her.
Farley in November.
Assuming that there will be a
conference in November, what will
be the British line OF action? The
necessity to obtain a reduction of
the total OF German reparations s
the first step in solution remains
patent. 1t is transparent now that
nothing can be accomplished on
this line. save as the British claims
upon her old allies are scaled down
and 1t is certainly just as manifest
that the United States Is not pre-