Evening star., 1925-01-01
1925 TO F|NDU.S
IN CONTROVERSY
Outcome of Discussion of
War Debts May Govern
New Year Economics.
BY DAVID LAWRENCE.

The end of the year 1924 finds Con-
Eress hardly started on its work and
the executive branch of the Govern
ment in the midst Of a serious
diplomatic controversy with France.
ON its outcome may depend many
economic factors in the year 1925.
There seems no question now that
Europe hoped to draw the United
States into discussion of the entire
problem of war debts but whoever
invented the strategy by which that
was to be accomplished knows now
that exactly the wrong tactics have
been used and that when the finance
ministers of the principal powers
meet next week in Paris they VIII
find d reticent, indeed silent, repre-
sentative from the American Govern
ment. instead Of an Informal negotla-
tor who might have helped to frame
a formula
The French have by their attitude,
as revealed by NJ CIemeutel, finance
minister, prevented Col John A.
Logan the American representative.
from doing anything except to listen
to what is proposed by the other
powers, for he has no authority to
discuss war debts. Also the effect
of the latest developments has been
to stir up Congress so that France
will have a difficult. il not impossible,
loans in the United States until she
shows clearly by acts and not words
that she intends to pay her debts
to America.
Question United States Rights.
There is another phase of the sit
uation which is as Troublesome as
those pronouncements of the French
minister of finance, which indicate
a possible Reputation of debts, and
that is the regrettable position adopt
ed not only by France, but Great
Britain, with reference to Americas
legal rights in reparations and war
claims generally. 1t is significant
that both the French and British
governments refer to Americas
equity" in reparation payments, but
not her rights" The French pre-
mier has been quoted as saying that
all jurists agree the United States
forfeited her rights TO reparations
by failing to ratify the Versailles
treaty, but that America deserves a
share, nevertheless. because she was
associated in the war with the allies.
This turn of affairs means that the
allies are trying to put the whole ar
gument on basis of equity and not
right, for once they contend that
equities alone are to be considered
II would logically follow that the
United States should regard the debts
owed to her by the allies on an "edui-
table basis" 1t all simply means an
effort to cut down the bill and set
easier terms of payment
The American Government thus far
has refused TO concede that. she has
lost any rights by falling TO ratify
the Versailles treaty. Even the VIII
son administration in its closing days,
while bitterly disappointed over the
failure of the treaty TO be ratified,
sent many notes insisting that Amer
ica'S rights We're derived from the
armistice and participation in the
war Since that time Secretary
Hughes has gone a step farther by
getting the treaty of Berlin ratified,
and under that agreement he thinks
the rights OF the United States have
been fully protected.
This is the kind of a question on
which the International Court of
Justice could function if the Ameri-
can Government agreed to submit it
for consideration, but the American
viewpoint is quite likely 10 be ac-
cepted in the end by France and
Great Britain if it is insisted upon
by the United States. This happened
before with respect to rights in the
inundated regions so there is reason
to expect its repetition The sig
nificanCe of the controversy is that it
reveals the European method of ne
gotiating. which is to put as many
issues into the pool as possible.
hoping to have something to concede
In return for concessions from the
other side
The whole discussion thus far is
more or less indicative of the Euro
pean policy of jockeying for position
before an independent international
conference, but the American Govern
ment has been alienated rather than
enmeshed. The participation by the
United States in further parleys
abroad and the raising of money TO
finance Europe's peace-time ventures
will all be vitally affected unless France
in particular comes forth with de-
finite proposals TO pay her war debts.
Copyright, 1921