The Washington times., 1924-03-13
IS NEAR
settlement
Of DEBTS
Advice Of Dawes and Others
Has Been Accepted-No
New U. s. Obligations.
BY WILLIAM HARD.

Europe is on the verge Of settle.
ment: and this settlement is being
reached without the mourning of
one single additional obligation by
the United States. This is the
news reaching Washington today
from persons in close touch with
the American delegates Charles G.
Dawes, Owen D. Young, and Henry
M. Robinson, who have been serv-
ing In Europe on the new subcom-
mittees of the Reparation Commits.
| sion.
In the best informed official
circles here it Is not by any means
thought absolutely certain that the
settlement will take place but 1t is
thought to be extremely probable.
The strong chances today are that
a French and German complete
agreement will come and that
Europe for a time will return to
the labors Of peace.
VindicatiOn of America.
This result, If 1t comes to pass,
will be hailed here as a striking
vindication of the policy of the
American Government. European
diplomats have from time to time
conveyed to this Government the
contention that Europe could not
be settled unless the United Safes
joined the League Of Nations or
unless the United States consented
to reduce the debts owed to the
United States by the European con.
tinental allies.
President Coolidge steadfastly has
refused to consider these proposals
and Is rumored lately to have ex-
pressed the whole actual policy Of
the United States in one witticism.
Asked by some visitor to state his
view Of international cooperation,
he is said dryly to have replied:
"It is felt, believe, that we
Of our advice"
This definition Of American policy
toward Europe, whether actually
made by the President or merely
attributed to him by one Of his
advisers, Is thought here to be the
most accurate SO far made. The
only contribution made by the
United States to the European set
Element has been the presence Of
i American advisers; and these ad.
visers will not be kept In Europe
permanently but are merely pass
ingly loaned.
Predictions Appear False.
When their wise counsels have
been needed, they will return to
the United States and resume their
ordinary work Of attending to their
private businesses.
Meanwhile all the predictions Of
Lloyd George and Of Clemenceau
to the effect that Europe could
never be settled unless the United
States took continuous permanent
hand in it and undertook continuous
permanent obligations in it will
have been proved false.
These observers hold that Secre-
| tary Of State Hughes will soon be
abundantly justified in the course
he has followed of approaching
Europe's problems only through un-
official delegates and through mod
estly proper advice. 1t is known
that the French disregarded this
advice when they occupied the
Ruhr. Mr.. Hughes at that moment
could have wrecked all hope Of
future cooperation with France II
he had publicly rebuked France
and had driven the French people
into feelings of hostility toward the
American people.
Mr.. Hughes deliberately re-
Trained, however, from any public
break with France. That moderar
ton on his part has now borne its
fruits.
France was willing to accept Mr..
Dawes and Mr.. Young and Mr..
Robinson as advisers, and these ad.
visers, it is here understood and be-
lieved, have great influence in de-
veloping the ideas which have led
to the French and German settle
ment now in prospect.
Basis Of Settlements.
It is learned that at the basis
Of these ideas there have been the
following principles:
/. The initiation of the cur
rency in Germany has brought II
about that Germany's internal
| debts have been virtually paid off
and extinguished, leaving Germany
alone among the great nations Of
the world with no internal debt
burden.
2. It therefore becomes rea-
sonable for Germany to assume a
new internal debt burden for the
benefit Of its external debtors-the
Allies.
8. This new internal debt should
be equal at least to the internal
debt burdens Of Great Britain. II
Great Britain, which did not start
the war, is CRYING a grievously
heavy internal debt burden, then
Germany, which did start the war,
should carr burden at least
equally heavy.
4. Taxes collected in Germany
to pay the interest on Germany's
new internL debt should be paid
into a new German central bank
controlled in part by representatives
Of the allies.
S. The moneys thus deposited
in that bank should remain there to
be withdrawn or spent bv the allies
only at such times and in such
ways as will be consistent with the
maintenance Of Industrial stability
in Germany.
Discussed in Washington.
These principles it is known, were
intimately discussed in Washington
before Mr.. Dawes and Mr.. Young
and Mr.. Robinson sailed for Europe
and it Is known that Mr.. Hoover
took part in such discussion.
II now these principles in their
general form are made q part of