Evening star., 1923-03-17
PRESIDENT BACKS STAND.
Believes q. S. Should Have Pay.
ment in Full for Rhine Army.
BY DAVID LAWRENCE.

MIAMI BEACH, Fla, March II
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 ths
| payment for the American army Of oc.
| cupation on the Rhine
The Secretary communicated all
the facts to Mr.. Harding here-it
was the first official act of irnpor.
| tance on the vacation trip-and brief.
1y outlined the course that he
thought should be taken Already
the reply has been dispatched IA
Paris along the lines of Mr. Hughes
| recommendation, which was that the
allied proposal be rejected
Contracts Terms Explicit.
There is little doubt that the nro.
cedure of the allies in this matter
has not helped their efforts to Sc.
| cure closer cooperation of America
| in the affairs of Europe The inn
preston the allied representative
have made has been far from pleas+
| ing, because the American govern,
ment has felt that if ever a claim
! was written down in black and
Whlte, without the slightest chance
of being misunderstood, the contract
| was the one providing for payment
| of the expenses of American troopi
| on the Rhine. This was to have heel
prior payment above reparationl
! or any other receipts, from Germani
| What American officials particular,
ly do not like is that the allies. aftef
collecting money from Germany foI
the expenses of Rhine armies. hays
! failed to give America her share ol
! their own initiative, but have sug,
gested that the claim be listed and
| paid later, and that also a portion OF
| the claim be reduced by crediting I'd
the same account the selling price OF
| all the German ships seized by Amer
/ lea during the war.
Ship Value Is Cut.
While some reports have indicated
that this latter item would amount
only to about fifteen or sixteen mil,
lion dollars. and would. therefore. bs
a small part of the total of two hun
/ dred and fifty millions owed America
for the Rhine army expenses. there
| is a suspicion that the allies really
wanted to multiply the number OF
German ships seized by America 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 5000 pei
| ton. as compared with $55 per ton
| today.
Not only did the American govern
! ment decline to consider this method
! Of calculation, because 1t meant the
appointment of an appraisal board
| and interminable negotiations. but II
| beclouded the real issue, namely, the
! payment of the expenses of the Rhine
| Army out of the funds received apart
| from general repararions. The United
States made no claim for general
| reparatiOnS, and does not like the
| idea of creditinE to reparations ac-
| count something for which payment
is expressly provided for under an,
! other section altogether of the
treaties and armistice agreements.
Relies Upon Hughes.
! 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 mil
lion dollars is a relatively small sum
compared with the amounts which the
| allies have been trying to collect
| from Germany, yet it is the principle
underlying the controversy which
may have far-reaching effects on the
! future of American policy. All the
| powers have stated in formal notice
that they recognized the equity OF
| the American claim.
But they never made provision for
| payment, although they always KEEP.
| on insisting that the American Army
| continue to stay on the Rhine 1t is
| true that the sums received by the
| allies have been disbursed already
! but that is why the American govern
| ment feels even more vehemently be.
! cause it's interests have been ignored
| by the allies.
The President is not worrying about
| the handling of the controversy as he
has full faith in the Secretary Of
| State, but the latter has felt the mat.
| ter was of sufficient Importance ia
advise the chief executive and get his
| formal approval to every step taken
Copyright. 1923.l