The Washington herald., 1922-09-09
Reparations Crisis Merely
Postponed, Says Simonds
Nothing Settled by Latest Compromise Though
Poincare and Lloyd George Strengthen
Grips on People.

upon US for cancellation such as the
French and Italians for example
nave upon the British.
Still Poincare knows that actual
payment of the debt owed to the
united States, says for the small
traction of the total debt incurred
by reason of postwar purchase
cannot and will not be made save
as German payment is made to
France. He knows and quite frank
ly says that France cannot and
VIII not pay her external debts
until Germany has made good the
French expenditures in reconstruc-
tlon, physical and human. that is in
rebuilding destroyed regions and
In pensioning war victims.
Asks New ParIey.
Having made this statement,
which is final. he echoes the sug-
gestion for a new conference on
Allied Indebtedness and German rem
aratlons. such a conference as was
expected at London before the Bal
four note was uttered. 1t remains
to be seen now what course Lloyd
george Will take. He has sounded
the United States and found no
support for the idea of a general
cancellation. He has endeavored TO
make our refusal the basis for co..
lection of Continental debts to Rrit-
ain in proportion as Britain has TO
pay America. This maneuver has
led to the categorical refusal Of the
Po:ncare note.
meantime the American govern
ment and people expect British paw
ment and there is bound to be pro-
test II such payment is delayed
much longer. George. then. IL fac
ing a situation where he will have
TO agree to pay the United States
ana cancel the British claims upon
the Continental states. He has. still,
however, final string to his bow
since he must eventually agree to
cancellation. he will certainly try
to sell such cancellation for the
largest political advantage possible
ana this advantage would come
from enforcing French demobiliza-
tion.
OF course if the United States
"ould only agree to participate in
new conference or better, agree
10 propose the holding of such a
conference in Washington, the sit
uation would change, for then the
possibility of American cancellation
would be restored. Failing this
however We are now determined IN
see the Anglo-French duel, in fact
LLOYD George -Poincare dueI
continued with new stakes In the
game. The latest bout has been a
oraw. Belgium has for a moment
ana at price prevented a COM
plete break. But neither contestan,
mas gained his point nor is the sit
uatlon one which can last,
meantime we have German foo6
riots and unmistakable worsenine Of
German conditions generally. The
Lonaon compromise while averting
INVASION cannot and will not ar
resi- internal disintegration. This
d'sintegration cannot be arrested
until some settlement is reached on
the main issue. The London com
promise viii not persuade American
investors to risk their money in
German loans and without American
money and large loans the situa-
uon Is frankly hopeless.
fou can say of the London Con-
terence and the resulting compro-
niise that II postpones a complete
disagreement between debtors and
an operation upon the patient which
might have proved fatal. But that
Is absolutely all: meantime the pa
teht continues to grow weaker and
final collapse seems not only in
evitable, but at hand.
(Copyrirht 1922