The Holly chieftain., 1922-02-02

administration is not satisfied with
the present policies Of some European
governments which are asking Its
help in the reconstruction Of Europe
and believes they should mend their
ways. Four cardinal principles which
1t holds they should adopt, according
to information from Washington, are:
First. reduction Of their excessive
military establishments; second. bal
ancing Of national budgets. levying of
adequate taxes. recognition of finan-
cial engagements; third, stopping the
practice Of issuing enormous amounts
of paper money; fourth, recognition
that the economic recovery of Europe
is related to economic rehabilitation of
Germany, which involves just and
speedy settlement OF the reparations
problem.
The premiers who agreed to invite
the soviet government Of Russia to
may repent their action If Lenin and
his crowd carry out the plan an
nounced in Moscow. 1t is said they
will present enormous claims against
the allied governments and the United
States for damages sustained by Rus
sia through the repeated attempts to
overthrow the soviet regime and
to have supported the revolt in
Karelia. These claims would far
more than Offset the old Russian debts
owed to other nations, recognition OF
which has been one of the chief de-
mands made on the soviet government.
DREsiIER POINCARE still insists
l that German reparations shall not
be discussed at all at Genoa, but he is
trying to come to an amicable ar.
rangement with Lloyd George con-
cerning an alliance. His plan Is that
the duration Of the alliance shall be
unlimited Instead of ten years; that
1t be reciprocal; that the term "Ger-
man aggression include attack on the
allies In the neutral or occupied zones
of the Rhineland; that there be i'm
mediate discussion II there is menace
on Germany's eastern frontier, and
that there be permanent contact be-
tween the French and British general
STATS. It was said Lloyd George prob
ably would accept all but the third
and fourth of these suggestions. The
fourth would amount to guarantee
for Poland. In asking that the dura-
tion Of the alliance be unlimited,
France explains that Germany will
not he recovered sufficiently to attack
within ten years. Presumably she
also takes into consideration the fact
that the plebiscite In the Sarre valley
will not take place until 1884.
UNLESS Peking is Unexpectedly
~ stubborn, the Shantung question
should be settled very shortly, ena-
bling the arms conference to adjourn
sine die. Through the efforts Of Sec
retary Hughes and Mr.. Balfour q
compromise plan was arranged last
week and cabled to Tokyo and Peking
for acceptance. Under this proposal
japan gives up her demand that the
railway be paid for through loan by
Japanese bankers, and in return China
agrees to the retention of a Japanese
traffic manager and accountant during
the period OF payment. The road is
to be purchased by China with treas
ury notes payable at option Ave to
fifteen years hence. Japan's accept
ance Of this plan was believed GER
tain. and President Harding himself
appealed to Minister SEE to induce
Peking to approve Of the agreement.
The committee on far eastern at
fairs concluded Its consideration of
the Siberian question, and Japan 10
left upon her honor to remove her
troops from that country as soon as
the re-establishment of political sta
bility makes 1t safe to do SO. Through
Baron Shidehara she gave a virtual
pledge to do this, and 1t was recorded
In the minutes of the meeting. After
fully explaining the present retention
of Japanese troops In Siberia, the
baron concluded:
Nothing is further from the
thought of the japanese government
than to take advantage of the present
helpless condition Of Russia to prose-
cute selfish designs.
"The military occupation Of the Rus
sian province of Sakhalin is only q
temporary measure.
I'm conclusion, the Japanese delega-
ton is authorized to declare that It is
the fixed and settled policy Of Japan
to respect the territorial integrity Of
Russia, and to observe the principle
Of noninteryention In the Internal af-