The New York herald., 1922-08-12
KAHN HAS NEW PLAN
FOR DEBTS TO ALLIES
Would Apply to Relief in Eu-
rope Funds Actually Used
for War Purposes.
NOT GIFT, HE EXPLAINS
Banker Returns With Sym
pathy for Austria and Praise
for Z. 8. Newspapers.

Otto II. Kahn. the banker. home from
Europe yesterday on the Mauretania, In
statement on arrival offered three
constructive suggestions for Amer
lean policy toward distressed Europe.
An official United States representative
on the Preparations Commission was the
first. He advocated Informal contact
with the League OF Nations and its COM
10 the league itself Third. he urged that
this nation deal In large visioned and
liberal manner" with debts from the
Allies.
1t was Mr.. Kahn's conviction that this
country ought 10 discriminate between
its financial advances to the Allies for
direct war making purposes and its
other loans. The former he would utilize
IN behalf OF Europe, not as gift, but
TO aid in bringing about that change
Of attitude and conditions which Is In
dispensable IL the world is to be again
on an even keel"
Mr.. Kahn said the war ridden ma
tions look TO the United States for aid
in restoring their purchasing power and
in disentangling themselves from the
racial anlmosities. Jealousies and
apprehensions" that have resulted from
operation of the peace treaties. He
found conditions particularly distressing
in Austria, where the people arc forced
into economically almost impossible
frontiers" and are prevented from
alleviating conditions with an affiliation
with Germany
Mr. Kahn said
THE European service OF the leading
American papers is SO admirably com
piete that, as far as the facts of the
situation and political conditions In the
various countries OF Europe are con-
cerned. there Is hardly anything a re-
turning traveller could say with which
conscientious reader of the daily press
is not acquainted.
Praises American News Services.
Indeed. the man who Is In the habit
OF carefully perusing a. leading Ameri-
can paper is fully as we'll posted as to
what is going on in Europe as the
reader OF the best European papers.
Without wishing in any way to belIttle
the principal papers OF Europe, / can
say In all honesty that one OF the i'm
pressions which invariably result from
my journeys to Europe Is the vivid rec
ognltion OF the amazing excellence and
comprehensiveness OF the news service
of the leading American papers.
Moreover. there Is little 1 can say
concerning the situation in Europe
which ! have not said before.
Europeans I'm n snari.
However, II Is little use to indulge
in lamentations over what has been
done. except in the hope OF aiding to
bring about a recognition of the facts
and from and through that recognition
remedial action, as far as still possible.
Europeans have got themselves into q
snarl. which, hampered by racial ami
mosltles, jealousies, appfehensions, con-
siderations OF domestic policy and so
forth they flnd the utmost difficulty in
dlsentangling. They urgently need and
ask our cooperation. less even in a ma
terial sense than as helpful counselors
and guides. IL seems to me both our
duty and our advantage TO heed that
cali"
Mr.. Kahn again expressed opposition
TO our joining the League of Nations in
the form and meaning in which II came
10 us from Versailles,
He continued: ''venturng, In al
tnodesty. to offer some constructive sug.
gestions. would say that what II seems
TO me we could and should do, consistent
with American traditional policies. with
the spirit OF the verdict of the last Presi.
Dental election and with altruism. duty
and self-interest, Is this:
Mr.. Knhn's Three suggestfons.
i. believe It would be well II
we were officially represented on the
Preparations Commission (of which
.f4 I.s,A ~a41 f.s.tg
m admirably qualified, but unofficial,
delegata). and on kindred commits
sions destined 10 settle controversial
questions and to aid the recu2eration
OF Europe, but involving no tangible
commitment to America.
?. While opposed to our Joining the
League Of Nations In its present
form. I wonder whether we could see
our way--with all due reservations
10 being represented informally and
unofiichially in the meetings of tho
League OF Nations and It's various
committees? IL Is conceivable that
from such contact there might result
such a readjustment Of the constitu-
tion and nature OF the league as to
give II the character of an assocla-
tion with which we should be justi-
ncd in establishing official connection.
3. We should deal In a large Wis
AOntu ana IbeTdl InhIneF Win TIE
debts duo us from the allied nations.
We might begin. II seems to me, by
discriminating between. on the one
hand, the advances made by us for
direct war making purposes, and, on
the other hand, those used otherwise
during the war and those made after
the arrnisticc. | would utilize at least
the first portion Of those debts 10 aid
IN bringing about that change OF at
titude and conditions In Europe which
is Indispensable If tho world is 10 be
again on an even keel. | would not
rclinquish any OF our claims a n free
gift, but only In consideration OF and
IN return for measures leading to the
elimination. as far as possible, or at
least the prompt and essential miti-
cation, or the circumstances and con-
ditions which keep Europe In unset
tlcdncss and turmoil.
Sees Material Bcnent.