The New York herald., 1922-02-09
DRAFTS HIS REPLY
Exact Nature Guarded,
butCabinet Opposition
Strengthens View
of Refusal
AIMS TO BE APPROVED
American Participation in
Later Conference After
Europe Acts.
SOVIET RUSSIA A BLOCK
Presidents Answer Not to Be
Disclosed Before it Is Re-
ceived i'm Rome.
SOVIET RUSSIA A BLOCK
Special Dispatch to THE NEw YORK HERALD.
New York Herald Bureau.

Special Dispatch to THE NEw YORK HERALD.
New York Herald Bureau.
Washington. ID. e.. Feb. y.
1t was assumed in diplomatic
circles to-day that President Hard.
ing's reply to the Genoa conference
invitation. which he expects to make
public on Friday, would be rejec.
tion, but that he would announce the
! concurrence of this country in the
aims OF the conference and would
promise American assistance in the
economic rehabilitation of Europe.
There are indications that the
American Government will hold out
the possibility of complete official
participation in a similar conference
at later date after steps have been
taken by the European nations them.
selves, perhaps as the result of the
Genoa conference, to solve their own
problems.
The American reply is understood
to have been drafted. II was learned
at the State Department late this
afternoon that it had not yet gone
forward to the Italian Government.
which is acting as host, but probably
would he dispatched within a few
hours.
Time of Publication.
II is the Presidents intention to
make it public when it has been re-
ceived in Rome, which probably will
be not later than Friday afternoon,
Washington time.
The exac. nature of the reply .s
being carefully guarded. The assump-
iion that 1t will be refusal TO Join in
such a conference officially al present
is based upon the known opposition o,
the Cabinet and the repeated intima-
tions from semi-official sources that
the Administration regards the prob
lens that will come before the Genoa
conference at this time as purely Eu-
ropean.
The review of European economic
and financial conditions by the Federal
Reserve Board. made public yester-
day. was interpreted in some quarter,
as an indication that tie United States
was preparing to announce its ac-
ceptance Of the allied invitation. al
though. perhaps. conditionally. But
1t was explained in an authoritative
quarter to-day that the boarl's state-
t7As f,nNn .
that light, and no such inferencs
should be drawn from IT,
Unofficial Observers May Attend.
IF TIE United States decides not 70
take part formally in the conference
President Harding will have unofficial
observers present. Ambassador Har-
vey at London and possibly Ambas-
eador Herrick at Paris and Ambassa.
dor Child a. Rome may be directed TO
attend
The reasons which have been urged
upon the President and Secretary
Hughes against participation by tho
United States at this time in Euro
pean conference such as that called 20
meet at Genoa on March s may be sum-
married as follows:
J. To sit at the conference table
With Soviet Russia would be ex-
prcssiy or tacitly recognizing tho
Moscow Bolshcvist regime as the dc
facto government OF Russia, which
would nocessitate n revising or Amer
ica's Russian policy and oblige IL to
enter into relations with that Gov
ernment.
2. Nations which will not hoIp
themselves cannot be helped by this
country, and II would be encourage
ing the continuation OF artificial
processes In dealing with acute eco
nofnic problems IL America should
enter a conference designed to rem
cdy certain ills when tho agenda ig-
noros the causes Of the ills and
merely calls for more artificial stlmu-
lants.
g. Certain European governments.
including France and Russia, have
shown no intention to end the era ot
political unrest and economic distL.b-
ance occasioncd by the maintenance
OF large standing armies, which con-
stitutes the major cause OF the exist
ing financial depression.
a. European governments are not
trying TO balance their expenditures
with their incomes, but are continu-
ing to turn out excessive quantities
of paper money, with the exception
of Great Britain.
5. Aside from England no European
nation seems to be aware of the re-
lstion OF the general European re-
covery 10 tho recovery of Germany
that to rctard the reconstruction OF