Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-08-10

How much is British bluff and how
much real danger lies IN the hare-up
at The Hague through the ultimatum
given by Mr.. Philip Enowden. British
chancellor Of the exchequer. that he
will Withdraw from the conference Of
the allied nations over the acceptance
Of the Young plan Of collecting and
Germany, unless the plan be revised
so that Great Britain shall receive. If
not the lions share" q proportion
equivalent to the division agreed upon
at the Spa settlement Of 1920? How
much is bluff and buster, and how
much Is to be attributed to English
home politics, manifested by the recent
change in the controlling party in gov
eminent?
At all events. there exists most
serious crisis, which may result in dis
solving the conference and hopeiessly
killing the Young plan. Five Eations in
the conference have accepted the plan;
only Great Britain complains about the
distribution.
Furthermore, Mr.. Snowden IS so an
taRoniStic that he declares that unless
he gets the demanded change, he will
not only reject the Young plan, but will
also cancel the terms Of agreed settle
ment Of the debt Of France and the
other nations owing war debts to Great
Britain. and demand full and peremp-
| tory settlement.
II the Young plan of German repara-
| tionS payment fall to the ground, then
the present Dawes plan must continue
In force. and it is alleged that the
Dawes plan has proved an inpoSsibility
since its annual payments, according
| to Germany'S claims, are found too high
| for Germany to make. She has been
| able to keep up her payments so far,
mainly, or at least largely, by means
Of new loans from foreign banks and
| private investors in her securities; that
resource is practically exhausted.
II the Dawes payments are to be in
| sisted upon. will Germany be forced into
bankruptcy. with French armies con-
! tinuing to guard the Rhine, and other
Since Great Britain's complaint lies
especially. II not wholly. against the
| distribution Of German payments
among the creditor nations, in place
| OF the Spa proportions. 1t is important
| to note what the changes are.
Under the Spa agreement, France
/ was to receive, out of the annual pay
ments BY Germany, So per cent and
England ~ per cent.
Under the Young plan, France will
| receive, during the next So years, 52.5
Therein lies the proposed change OF
shares which Is now stirring up bad
blood between the former allies re.
| duction OF III per cent for Great
Britain compared with the proportion
she has been receiving.
Under the proposed Young plan, the
payments are to be divided into two
classes OF each annual payment, $780,.
100000 marks is payable in foreign
right OF poStponement. Out OF that
sum. $50, 100000 marks. or $142, 900 900
Is assigned to France.
| That unconditional payment" Is
secured by o direct tax on all OF
Germany's railroads: all other pay.
ments come out Of the budget Of the
Reich, and these latter payments (fron
the budgeD may be appealed to the
| special advisory committee OF the pro.
posed International Bank Of Settle.
mentS, which 1t Is planned to establish
The bank then will study Germany,s
condition, and, at its discretion. may
grant postponement, not exceeding two
years.
It Is noted that France ID to receive
almost the entire unconditional an.
nuity." One Of the most stubbornly
! contested reservations desired by France
( In her settlement funding Of her debt
to the United States has been q pro.
vision that In case Germany defaulted
In any Of her payments to France, Their
/ France should be granted extensions
| on her own debt to use accordingly
That demand has not been granted BY
the United States.
Under the Mellon Berenger settlement
| Of Frances debt to the United States
France will have to pay us on her
| principal Of the debt only about half
Of what she will collect annually from
Germany from the unconditional pay
| mentS"
That settlement has now been ratified
by the French Parliament, 20 the old
contention no longer exists, but there
persists in Europe . conviction that
long before all payments are made
either In the debts due the United
States or the international debts be-
tween the allies Of Europe are paid, the
United States. In its great prosperity
and generosity-or diplomatic self.
interests going to cancel all balance,
then due US. International bankers ir
New York as well rs Europe continue
to hold out that rosy prediction.
It Is pointed out that at the present
rate Of reducing our own national debt