Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1923-03-20
HARDING APPROVES
HUGHES REJECTION
Of ALLIED PROPOSAL
BY DAVID LAWRENCE
Heased Wire Service to The Journal)
(Copyright, 1929

Copyright, 1929
MIAMI BEACH, Fla, March IL
President Harding lost little time ap-
proving Secretary of State Hughes
recommendations as to the reply OF
the United States government to the
proposals of the allies concerning
the payment of the American army
of occupation on the Rhine.
The secretary communicated all
the facts to Mr.. Harding here-it
was the first official act of impor-
lance on the vacation trip - and
briefly outlined the course that he
thought should be taken. Already
the reply has been dispatched to
Paris along the lines of Mr.. Hughes
recommendation, which was that the
allied proposal be rejected.
There is little doubt that the pro-
cedure of the allies in this matter
has not helped their efforts o secure
closer cooperation of America in the
affairs of Europe. The impression
the allied representatives have made
has been far from pleasing, because
the American government has felt
that if ever a claim was written
slightest chance of being misunder-
stood the contract was the one pro-
viding for payment of the expenses
of American troops on the Rhine.
This was to have been a prior pay
ment above reparations or any other
receipts from Germany.
Dislike Attitude
What American officials particu-
larly do not like is that the allies,
after collecting money from Ger
many for the expenses of Rhine
armies, have failed to give America
her share of their own initiative, but
have suggested that the claim be
reduced by crediting7 to the same ac-
count the selling price of all the
German ships seized by America
during the war.
While some reports have indicated
that this latter item would amount
only to about fifteen or sixteen mil
lion dollars, and would therefore be
small part of the total of two hun
dred and fifty millions owed Amer
lea for the Rhine army expenses,
there is d suspicion that the allies
really wanted to multiply the num-
Der of German ships seized by Amer
lea by the sale price per ton during
the war, which would have brought
the total up to a considerable sum.
The sale price then was about $500
per ton as compared with $55 per
ton today.
Not only did the American govern
ment decline to consider this method
of calculation because it meant the
appointment of an appraisal board
and interminable negotiations, but it
beclouded the real Issue, namely, the
payment of the expenses of the
Rhine army out of the funds received
apart from general PREPARATIONS. The
United States made no claim for
general Preparations, and does not
like the idea Of crediting to repara
lions account something for which
payment is expressly provided for
under another section altogether OF
the treaties and armistice agree
ments.
Affect Future Policy
There is an Importance to this dis
pute, however, which in the eyes OF
the United States government trans
cends the amount of dollars and
cents involved. Two hundred and
fifty million dollars is a relatively
small sum compared to the amounts
which the allies have been trying tC
collect from Germany, yet it is the
principle underlying the controversy
which may have farreaching effects
on the future of American policy. AL
the powers have stated in a forma
notice that they recognized the
equity of the American claim. But
they never made provision for pay
ment, although they always kept on
insisting that the American army
continue to stay on the Ruhr. 1t Is
true that the sums received by the
allies have been disbursed already
but that is why the American gov
eminent feels even more vehement
ly because it's interests have been
ignored by the allies. It's a good
deal like the situation that would
exist between two men who haC
agreed that one would get certain
share and the other would get the
remainder of a debt when paid by q
third party and if one of the mer
went ahead and spent the other
mans share without so much as tell
ing him about it until the money was
spent and then began to dispute as
to how it should be paid to the first
creditor.
The president is not worrying
about the handling of the contro
versy, as he has full faith in the
secretary of state, but the latter has
felt the matter was of sufficient i'm
portance to advise the chief eXecu
tive and get his formal approval tc