Evening star., 1923-10-29
The Reparations Problem.

A new phase appears in the repara-
lions situation in communique writ
ten personally by Premier Poincare
and issued in Paris last night, re-
iterating the French governments de-
termination to refuse to agree to any
reduction Of the German debt as fixed
by the London conference Of May,
1921. This, however, is not viewed
here as interposing any barrier to the
participation by the United States in
an international economic inquiry.
In his letter to Lord Curzon Secre-
tary Hughes definitely stated as con-
dition of American participation in
such a conference that it should not
be viewed as binding upon the govern
ments taking part, but should be
merely advisory. Premier Poincare in
his communique notes that under the
Versailles treaty the reparations COM
mission itself has no power to grant
any reduction, the treaty stipulating
that such a measure must be decided
by the unanimous vote of the interest
ed nations. He notes further that the
reparations commission has full power
to name agents, to create committees.
1t would appear from this latest
French note that a new commission
Of inquiry on which the United States
may be represented will work as an
agent of the reparations commission
or not at all. Under the French view
point there can be no departure from
the extent of Germany's ability to
pay, which Is and has been virtually
from the first the measure Of repara-
tions exactions. France apparently
will not yield on this point, and, in
view Of the citation of the Versailles
treaty by M. Poincare, it is clear that
any change would be, in effect, de.
parture from the treaty itself, which
is not, practically, subject to amend.
ment.
The question arises whether Ameri'
can participation in a purely advisory
agency of the reparations commission
would add anything Of material value
to the research and the process of
collection: Much stress is laid upon
the moral effect Of the inclusion of
this country in the survey. But II
France insists that the amount ad.
judged as possible damages cannot be
reduced from that fixed already by
the reparations commission the ques-
p NH
can work to any practical result.
The practical question in this repa-
rations matter is to find a formula OF
payment that will work, that Germany
will respect and execute In good faith.
Germany has failed to meet her ohliga-
tions under the original award Of the
reparations commission. She has in
terposed obstacles, has set up excuses,
has demoralized her currency, has. it
is believed, deliberately put in jeopardy
her industrial organization to the end
Of a virtual reputation Of those obliga-
tions. France has moved into a por.
ton of the German territory as a
means Of compelling deliveries Of ma
terials under the schedule Of pay
ments. That occupation has failed to
yield results, has led, indeed, to serious
complications, and at present Germany
Is in a state Of political dissolution
partly in direct consequence Of this
move.
It remains to be seen whether re-
,ewed survey will yield more definite
results than the original reparations
study Participation by the United
States may not help 1t certainly can
not hurt. 1t will involve no obligations
whatever on the part Of this govern.
ment. and it Is specifically separated
by the definite terms of the proposal
from any consideration Of the allied
debts owing to this country. It is at
any rate worth trying.