Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-08-13
NOT AUTHORIZED
BY TREATY; WOULD
ARb!TRATE POINT
FavOrs Putting Question up to
Hague or Some Other Tri-
bunal - Bars Reparations
Commissions as it Favors
Policy of France and Bel
GUM

| London. Aug. 12-(Ry A. P.)-The
British government in the publica-.
ton today Of it's official correspon-
dence with the Allies since June
placed on record its position with re-
gard to the German PREPARATIONS
problem.
| Lord Curzon, secretary for foreign
affairs, in an elaborate note dealing
with all the manifold aspects of the
| problem, sets forth that the British
government regards the occupation
of the Ruhr as illegal and unauthor-
| lied by the Versailles treaty, thus
| supporting the German contention in
this respect. AT the same time. how
ever. he offers to submit the point to
arbitration at the Hague or by some
other body.
Cannot Agree with France
While still adhering to tone Of
the utmost courtesy and saying moth
| ing definite with regard to any sep
arate action on the part of Great
Britain, Lord Curzon emphasizes that
Great Britain cannot agree with the
French policy, which he intimates
plainly seems to point to an indefi-
mite occupation of the Ruhr.
Lord CurZon still leaves it to the
French government to suggest the
method of selection an international
commission to examine into Ger
many's capacity TO pay reparations.
but he plainly declares that Great
Britain cannot accept the decision of
the reparation commission on this
matter, since that commission has
hprOn0n instrument
Franco Belgian policy.
Finally Lord Curzon declares that
the British government still adheres
to the plan of former Premier Bonar
Law, under which Great Britain
would be satisfied to obtain from
German PREPARATIONS and allied debts
to Great Britain a sum sufficient to
meet Great Britains obligations to
the United States.
Disappointed Over Notes
Lord CurZon's note expresses the
sincere disappointment with which
the British government had received
the previous communications OF
France and Belgium especially since
Great Britain had suggested that an
inquiry into Germanys capacity to
pay should be conducted within
framework of the treaty Of Yer
sailles. and that the German gov
draw its orders enjoining passive re-
sistance on condition that this should
be regarded as evidence of good faith
involving reconsideration by the &C.
cupying powers of their conditions of
occupation and a gradual return to
normal of the industrial life in the
Ruhr.
The British note remarks that ut
is difficult to think in what way
greater consideration should have
been shown to the Franco Belgian
point of view"
1t then at great length outlines the
British viewpoint. which Lord Cur
ION summarizes as follows:
His Majesty's government never
contemplated. and does not ccntem-
plate, that Germany should be re-
lieved of all reparation payments.
They are determined that Germany
shall pay to the maximum of her
capacity. When that maximum
may be should be decided by an i'm
partial inquiry. 1t cannot be ascer
tanned by casting up amounts Ger
many's creditors would like to re-
CeiVe.
Must Not Force Liquidation
ITO ask more than Germany's
capacity can only destroy assets
winch germany "Oulu pC ANY "
offer the allies. To force liqulda-
ton is not the most profita BILE way
of making recovery from debtor
with resources.
1T is admitted that Germany can
only make substantial payments II.
by restoration of her finances and
sterilization of her currency, she
secures a budget surplus available
for reparations. Moreover this sur
plus must be in a form which can
be made available for external pay
ments over the foreign exchanges.
External debts cannot be paid by
the collection of deprecated paper
marks.
In view of His Majestys gov
ernment. forcible interference with
the economic life of Germany, even
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