The New York herald., 1922-12-14
HARDING OPPOSED TO
FURTHER OCCUPATION
|. BY FRENCH ON RHI''7
Allies Should Fix TCta
Sum Which Germany
Is Able to Pay.
HIS POLICY CONSISTENT
Decided Long Ago Not @
Hold Al0Of From Rep
afatiOns Problem.
AID AND ADVISE EURO
Objects to Further Military
Advance Into Germany if
Parley Fails.
AID AND ADVISE EURCpE
peciar Dispatch to TIE NEW YORK HERALD.

Special Dispatch to THE NEW York HERALD.
New York Herald Bureau.
Washington, ID. C., Dec. IL.
President Harding's purpose not to
hold aloof from the European crisis
over reparations does not involve
departure OF policy on the part of the
Administration, II was explained in
official quarters to-day. The readiness
of the Administration to give aid and
advice to tide over the crisis and help
solve the reparations tangle is con-
sistent with the policy adopted since
the matter became first acute in April.
1921, it was stated.
Neither the White House nor the
State Department sees justification for
interpreting the Administrations pur-
pose as a change of policy. The rep
arations question has always been re-
garded by the President and his adj a
visers as basic and while at no time
aggressive, the Administration has al
ways sided against extreme measures
against Germany. 1t is because the
adoption of such measures woul
regarded here as fatal that the
ministration is so keenly Interest,"
the question at this time
Repnrations the Root.
The reparations question, the iit
istration holds. is at the root of fin 1c'al
trouble of Europe. and while tn asa
ministration feels that 1t Is a mat 0t
which the allied Powers and &c rg
must agree the American viewpoi ae
already been presented on vario s-
casions
The American position is. in l-.
that this country can only aid l.arope
after Europe has aided itself by reach
ing an accord on the fundamental ques-
tion of how much Germany can pay.
Until this question has been settled, ofii-
cials here believe. choos, confusion and
instability will prevail.
President Harding and HIS advisors
are convinced that Germany cannot pay
the huge sum imposed in the Treaty OF
Versailles and they are equally con-
vinced that the sooner a reduction is
agreed on the sooner will reconstruction
not only in Germany but also in France
begin.
The position Of the Administration on
the matter was set forth during the
reparatlons crisis Of 1921. There has
been no change m the American policy
since that time so that II is indicated
now that as WIS done in 1921. the
United States will be found lined up
against military pressure on Germany.
in case the conferences set for January
. should fail.
should Fix sum for Germany.
The Administration ls not saving how
much Germany should pay. All II says,
and IL Is said mainly by indirection. is
that ii is vital that the sum fixed should
be "A sum that Germany can pay. that
II should be made specific as early as
possible. In addition. this Government.
has intimatcd that until reparatlons arc
settled on a reasonable basis II is idle
TO expect that any aid tho United states
desires to extend can avail.
No effort has been spared by the Ad-
ministration 90 make IL clear 10 tho
powers that the reparations haze moth
ing whatever to do with the European
debt 10 the United states. There has
been no faltering on the part OF the
Administration on this point
The statement of Premier Bonar Law
Of Great Britain TO the effect that inter
allied debt and the reparations pay
ments were ''cognate' problems. does
not apply to the United states. u is
the purpose Of the Administration TO
treat them as entirely independent OF
one another. as far as the obligations
due TO the United states arc concerned.
So that It Is distinctly understood that
whatever advice the Administration
gives or whatever influence Il wieids in
the discussions looking TO reparations
settlement is In no way contingent on
the Administration considering any
cancellation or partial cancellation pro-
posal from the Powers.
Must Refund Debt.
Settlement Of reparatlons coupled with
the unalterablc determination TO pro-
ceed with tho funding II the foreign debt
IN accord with the act Of Congress may
therefore be said 30 constitute the basic
principles of American policy. For the
time being Rt least all proposals OF cam
collation. of part Of .the foreign debt to
tho United States are believed out OF tho
question.
This does not mean that this Cow
ernment Is not inclined 70 be as lenient.
The only inhibition in this respect Is the
twenty-year limit fixed by Congress
However. Il IL possible 90 exteend aid
on the principle OF graduated payments
beginning at low figure and increas-
ing the yearly instalments as the Euro
pean Powers gradually recurerate.
J. r. Morgan was here to-day and
conferred with Secretary Hughes. Mr..
Morgan was among the bankers who at
the conference IN Paris participated IN
the discussions OF feasibility of an ox-
ternal loan to Germany. Elhu Root.
former Secretary OF state was also in
washington to-day. but whether there
is connection between the presence hero
tonight OF Mr. Morgan and Mr.. Root
was not clear
The position taken by the bankers in
Paris was that an external loan 70 Ger
many was out Of the question so long as
her resources we're so heavily mortgsged