The New York herald., 1922-12-18
DEBT CANCELLATION
OUT OF RELIEF PLAN
American Move Designed
to Avoid Political Com
plications.
POLICY NOT CHANGED
Project Would Be Endan-
gered if France Asked
for Cut of Debt.
POLICY NOT CHANGED
TREATY TALK TOO LOOSE
President Believed to Have
Proposed No Such Enter
prise in Feelers.

Special Dispatch to THE NEW YoRK HEsALp.
New York Herald Bureau.
Washington. ID. c.. Dec. II.
Foreign diplomats in Washington
are taking keen interest in the ac-
tivities of the american Government
as displayed in the moves of the Har-
ding Administration TO bring aid and
relief in the European financial crisis.
The interest manifested by the rep
resentatives OF the Powers mainly
concerned III the American program
of aid clearly indicates their convic-
ton that they expect much more than
an empty gesture to come out of it
all. While naturally they are keeping
in the background. they agree that
the. feelers that have gone out have
the part of Great Britain, France and
Germany.
Although officials OF this Govern
ment have issued a warning that the
must not be exaggerated into pana-
cea for every ill that afflicts Europe.
ii is pointed out that the effect of
this country's influence being thrown
decisively into the scale for solu-
tion of the pressing reparations prob
lem is half winning the battle.
While ii is practically certain that
the details of the plan which this
country is suggesting will be kept secret
Until the full views Of France, Germany
and Great Britain have been ascertained,
diplomatic Washington is convinced that
when the Premiers meet again in jan
uary TO consider reparations the ground
work for a rapprochement will have been
laid.
TroublesOme Factor.
5 The factor in the situation that has
caused and continues to cause misgiv
ings To the spokesmcr OF the foreign
Powers Is the effort OF the Admiristra-
tion to divide into watertight compart-
ments the obligations falling under repa-
rations and the obligations Of foreign
nations to America. While this Govern
nent takes the position that the scaling
down OF repsra tions 20 a reasonable
figure. as high as Germany can pay,
is the first requisite to any approach
10 a solution including a loan. there Is
apprehension IN some quarters that
France may cornter with the demand
that some OF her own external debt
should be cancelled.
II is generally agreed. however. that
the basic policy Of the United states in
regard to keeping reparations and the
Europeaii debt to this country entirely
sepa RI te will not be changed. The only
way to change the policy nov would
be for President Harding to go before
Congress and ask for power 10 deal
with the debt with free hand and
make adjustments other than hs Is OBJ
ligated to make under the act creating
the World war Debt Commission.
President Harding and Secretary
Hughes realize that any such request
10 Congress Is out OF the question and
would offset The favorable reaction
throughout the country 10 what the
Administration Is trying to do now
within the limitations imposed on II.
TIE European Powers also know this.
and with this knowledge In their possess
sion officials of this Government hope
that any % an Of American aid will not
be countercd with cancellation sueges-
tions.
ROLE of Friendly Counsel.
The Limitation placed on the Chief
Executive by Congress renders il In
eyitable that the United States should
assume the role of friendly counsel IL
the controversy and that this Govern
ment will facilitate plans for private
financial aid 10 Germany TO pay 70 the
o al n
,ions are placed on payable basis
through reduction and provided France
pives guarantees to maintain the status
quo on the Rhine.
7, was pointed out In Administration
circles to-day that there is n gren. deal
Of loose talk as to tho extent OF guar
antics for Europe 20 be assumed by the
United States Government. Diseon-
nec,ed words from officials have led to
the formation OF wild hopes and theories.
some OF which would make this Govern
ment party to a four. ave or slS Power
treaty 10 guarantee the peace OF europe
The extension OF the principle OF ,ne
four Power Pacific treaty TO which
Tresiden. Harding referred In his mes
sage TO Congress has been twisted into
All sorts or weird shapes that have no
basis whatever in anything contemplated
NV the Administration SO far as can
he ascertained this Government az the
moment is busy finding a solution for
critical financial situation. II has al
views taken the position that politics OF
Europe arc for Europe to settle. and
any suggestion that this Government
Is even considering a conference out OF
which would come some kind or treaty
CARRYING guarantees OF territorial In
volatility appears 10 be without foun-
dation.
When the President spoke OK the APP
plication Of principle there is reason
e. believe that nothing was further from
his mind than that this country would
urge OF take leadership In formulating
such treaty. The President IN fact
made n clear within twenty-four hours
after his address to Congress that his
reference to the four Power treaty car
ried nothing beyond the extension OF
hope.
This was interpreted as hope" that
IL might be taken by Europe as example
OF what the Powers might do within
their own territory. In any case, there
Is no reason 10 believe that Il carried
any Implication that this Government
is ready for a departure Of policy In
respect TO political questions OF purely
European concern.
SUNDAY PAPERs BURNED.