Evening star., 1923-08-13
BRITISH SUPPORT
HUGHES PROPOSAL
Reparations Reply Shows
Outline of U. S. Suggestion
Is Being Followed.

treat britain In the draft reply on
| reparations and it's covering note,
| made public here last night. was
! the suggestion to her allies that "the
| cooperation of an American expert"
| be sought on commission of eX-
perts to establish the capacity of
i Germany to pay.
The British, in proposing American
! cooperation in the investigating
| body, as set forth in the covering
note. followed the outline of a plan
| suggested first by Secretary of State
| Hughes in his address at New Haven
| last December. Aside from the rev.
| elation concerning the British atti-
| tude toward American cooperation
| the draft reply and covering note
| contained little that was not dis
! closed by Premier Baldwin on August
| 2, in hissaddress to parliament.
No comment on the reparations ex-
changes was forthcoming from Amer
4 lean officials.
1t was pointed out in other quar-
| ters, however. that, while Mr.
Hughes was careful to say at New
| Haven that the experts to sit on
the. proposed commission should act
| from any responsibility to foreign
! Offices and from any duty to obey
political instructions" the British
| draft reply makes no such stipula-
tion. Instead. it merely described
those who would take part in the
/ inquiry as competent and impartial
4 experts"
Set Forth Plan.
! AS summed up in the covering note,
the intent of the draft reply was to
/ set before the world the following
| plan of settlement as embodying the
1 best Judgment of the British govern
| ment:
Il. The German government to un-
! dertake to abandon the policy of pas
sive resistance.
! go Steps to be taken upon the ces-
| sation of passive resistance for the
| resumption of the civil administra-
| tion of the Ruhr, and to provide for
| the progressive evacuation OF those
| areas.
! 80 A body of impartial experts to
| be set up. charged with the duty of
advising the allied governments and
| the reparation commission. respec-
lively, as to Germany's capacity to
pay. and as to the mode of payment
/ of an American expert to be sought
=; and arrangements to be made for
| German experts to be consulted and
| heard.
4 l.
! ilarly constituted. to be asked to ad-
/ wise the reparation commission is to
the economic sureties and guarantees
to be pledged by Germany to the
/ allies.
| "5. Interallied discussions to be
! opened with as little delay as pos
! sihle, whether by conference or other
! wise. for the purpose of celebrating
a comprehensive plan of general
and final financial settlement.
/ Gn q
I ties and guarantees which Germany
; will have pledged to the allies have
! been put into effective operation the
| occupation of all German territory
! outside the limits laid down in the
| treaty of Versailles to come to an
! end.
No Direct Reference TO L. 8.
! The draft reply. which made no
! direct reference TO American coop
! Grafton in the adjustment of the rep
arations question, after calling at
! tention 10 the request of the German
; government contained in it's note of
/ June I. for examination by an
| impartial international tribunal OF
| Germany's present capacity Tor pay
| ment." continued:
f; THE allied governments. while un-
, able 10 accede to this request in the
! form in which it was proposed, are
! far from thinking that they might
! not be assisted in the task devolVed
/ upon them by the treaty by the labors
of competent and impartial experts;
and provided that nothing is done in
/ this respect that is inconsistent with
| the treaty stipulations. they are dis
posed to think that positive advan-
| tage might result FROM such an exam
| nation 1t would bring the allega-
! tions of diminished capacity to the
test of fact; ii would reveal the actual
position at the present moment; and
il would remove all excuse for eva
! sion.
Note German Approval.
! The allied governments take note
! of the statement by the German gov
ernment that it would welcome such
an inquiry, and or It's pleose TO aoiue
by the result"
! The draft reply also made the point
/ that mo guarantees for the punctual
discharge of accepted liabilities VIII
| suffice unless provision is at the same
| time made for some form or inter :
| national control of German financial
administration.
Referring to the situation in the
! Ruhr growing out of French and Bel
gium occupation and the resulting
massive resistance" Of the Germans,
the draft reply said:
! IF the German government now
desires resumption of inquiry, II
will, in the opinion of the allied gov
!ernments be well advised to Withdraw
without further delay the ordinances
and DEGREES which have organized and
fomented this form to resistance and
openly and unequivocally to d1saVoW
! the acts of violence and sabotage
| which have in some cases accom-
panied it.
Were this action to be taken with
out delay, not only would 1t be re-
! garded as an evidence of that good
! faith which the German government
! has once again avowed, but 1t would
| involve a reconsideration by the oc-
cupying powers of the conditions OF
their occupation and gradual return
life in the Ruhr. Such reversion
! would possess the additional advan-
| tage that. by establishing the pro-
ductiye activity Of that region, 1t
would enable the German government
more speedily and more effectively
! to discharge it's reparation debt
Matter for Allies.
As to the composition of an "im-
martial" body to determine Germany 8
! capacity to pay, the covering note
suggested that this is a matter which
| should be determined by the allied
! governments in consultation
| "There should be no difficulty" the
| note continued, "in agreeing upon a
! selection of competent persons en-
joying their confidence as well as tina,
| Of the paolic. Further, the advan
| tages of American cooperation in
| this inquiry, W. ether in an official or
| in an unofficial capacity, scarcely re-
quire em0hasis. and is confidently
IF. At