Evening star., 1924-08-10
INFLUENCE OF AMERICA
I AVERTED LONDON FIASCO
Continuance Necessary if Dawes Plan
Is to Be Successful in Operation
to Assist Europe.

her stone OF tne WnOle Dawes eOlncc.
These American and British bankers,
moreover, asked at once absolute pro-
lection against the consequences OF
any disturbing political or military
lntervention.>
In effect the bankers asserted that
they could not undertake to find the
5000. .000,000 unless they were assured
that no. matter what happened there
would be no new military operation
on the part of France. For it is plain
that any such Intervention would
lessen the security the bankers might
have in Germany for their 100000
GEO loan. In a word it is clear that
whether Germany wilfully defaulted
or not, so far as reparations were
concerned the bankers would be
equally opposed to a military action
which would with equal disadvantage
affect their security for their loan.
Threatened French Situation.
But this demand of the bankers
instantly threatened the whole
French situation. Under the Dawes
plan the Germans are to pay some
$600.000,000 annually when the pro-
gram is in full operation and OF This
sum a little more than $500, 100000
will go to France. OF the 5000, 600, 900
of the bankers loan about half will
also go to France, but it is plain that
France would not think of surren-
dering the right to enforce the pay
ment of an annual contribution ot
more than 5000 900. 900 merely because
she would get $100,000,000 out of the
loan. The struggle then became to
find formula by which everybody's
legitimate interests should be con-
served and over this the battle ragged
for nearly two weeks. In the end.
as 1 have said, the solution which
was reached amounted to the ap-
pointment of arbitral committees to
decide whether any German failure
is wanton and deliberate. IL the arbi-
ters decide that it is, the right still
remains with France or any other
nation to act Independently, if its
associates decline to march with it.
Bankers Given Security.
The bankers are thus insured
against any deliberate and wanton
destruction of their security by
French action based upon a pretext
and not upon actual willful default.
The British are insured against the
evil political and economic conse-
quences of any similar French inter-
vention, but France retains the right
to intervene, if, in fact Germany eva
sion is real and is pronounced by
an arbitrafboard of which Americans
are the deciding members. And Un- |
mistakabIy this is the limit of the !
rights of any one of the parties in !
interest, whose conflicting claims !
could only be adjusted by compro- !
mise.
OF course. in practice all the COM
promises and agreements will work !
only as the present state of good feel !
ing between the French and British !
government endures. But the compro- +!
misses take the whole affair out Of !
French and British hands pretty COM |
pletely and put it in those of the |
man who is to be agent-general or Z!
better still. general manager of the |
whole show" And this man will. |
quite obviously, be Owen D. Young, |
who is responsible for the larger part |
of the Dawes plan, Itself.
The all-important. thing was and is |
that the Dawes plan should somehow |
be put in operation and this seemed !
impossible because neither the Brit |
ish nor the French were willing that |
it should be put in operation by any |
body controlled by French or Brit !
ish majority. What the. London con-
ference really amounted to was an
answer to the question, Can the |
Dawes plan be put in operation?' And |
it must be remembered that the |
Dawes plan, like the London confer
ence agreements, represented a COM /
promise between British and French
views and interests brought about |
largely by American Intervention.
See Both Sides of Problem.
I do not think it is an exaggera-
tion to say that both in the making |
of the Dawes plan and in the formu
lation of the agreements at the Lon [
don conference to put it into opera |
ton the real success has been due to |
the fact that American representa- |
tives, Mr.. Young and Gen. Dawes in |
Paris and Mr.. Young and Col. Logan |
in London, have been able to see both !
sides of the problem. the British as |
well as the French, and to recognize /
the essential and legitimate rights |
of both. And in the same fashion if |
in the long run the Dawes plan does |
work out, it will be due largely to |
American. influence in applying it.
For it must be patent thai just as |
the British and French have neen |
and remain unwilling to trust each |
other. but ready to accept American |
arbitration, SO the Germans, VINO are /
naturally unready to accept either |
British or French direction, believing |
that both would be exercised without |
regard to German interests and solely |
to. suit the selfish interests of the |
allied nations, must in the end recon- |
cile themselves to accepting american |
advice and supervision. For the Ger
man case is on the whole more des-
perate than the British and even than
under the Dawes plan are not Forth !
coming there will be collapse in the |,
whole fiscal and economic system Of |
Germany. The loans will not come !
until the Dawes plan is accepted and |
Germany has taken the necessary
steps to make application possible.
Bearx American OK.
Like the British and the French, the
Germans recognize the folly of as
suminE responsibility for rejecting
the Dawes plan, because il bears an
American name, has been Endorsed by
the American Government and people |
and is beyond all question that single
highway by which approach can be
made to American capital. Europe
wants American loans and America |