Evening star., 1933-01-01
TWO CHIEF EVENTS
OF 1882 WEIGHED
Lausanne Accord and Franco
German Arms Understand
ing Emphasized.
BY WILLIAM BIRD.

PARASITIC year 1882 has to its
credit a long list of achievements, of
which two may certainly be considered
the smost important that have happen
ed since the war. Probably only few
people, as yet, have realized how i'm
portant. how almost revolutionary they
are, and how much they mean to the
consolidation of peace and to the i'm
provement Of world economic con-
ditions.
One OF these outstanding achieve
ments was the Lausanne agreement
which passed sponge over the repara-
tions slate, remitting TO Germany all
but small fraction of the unpaid war
indemnity owed to the allies. The
other is the offer by France to admit
Germany's equal right to arm, which
virtually abolishes the limitation on
German armanents imposed by the
treaty of Versailles.
1t is easier to realize the Importance
of these two events if one bears in
mind that ever since the Treaty of
Versailles was signed, In 1919 II has
served as universal whipping boy
whenever anything in the world went
wrong. And plenty of things have gone
wrong during this 13-year period.
France Given Credit.
The reparations and disarmament
clauses Of the treaty have come in for
particular reprobation. France has
borne the brunt Of the criticism, because
France, it was generally felt, was the
principal beneficiary. 1t Is only fair, IA
consequence, that France should reap
the biggest part Of the credit for the
abrogation Of these clauses.
In Germany people still speak Of the
Treaty of Versailles as an iron collar
around the nations neck, and the Ger
man press and public complain loudly
at the refusal of the French to allow
1t to be amended. But, in point of fact,
probably no important treaty in history
was ever amended SO much In its first
Is years as the Treaty Of Versailles has
been.
The cancelling Of reparations does
not mean merely lifting a burden from
Germany's back. Its effects are much
broader, and indeed will be felt as much
In the United States as anywhere. The
obligation TO pay reparations constituted
first mortgage on the resources of
the German nation, and If the allies
had chosen to insist that Germany pay
that debt II would have been trnpossi-
BILE for Germany to meet any other
foreign obligation until that debt was
paid.
American investors have billions OF
dollars IN German securities. Repara-
tions stood in the way, not only OF
getting tneir capital back, but of col
lecting interest and dividends. with
reparatlons abolished, any payments
tnat germany is able to effect abroad
can De MADE TO private creditors, among
whom Americans are the most numer-
Gus.
Must Sell Goods or Service,
Nor is that all. Before any nation
can make foreign payments. it must
| earn the money. The only practicable
way OF securing large amounts OF gold
or foreign exchange is by exporting
goods or selling services (such as ship
ping abroad. The gold and foreign
exchange thus obtained can be utilized
| 6unless 1t is Offset by pu- aases of
foreign goooS or foreign service) TO pay
foreign debts.
| But the separations were SO enormous
that they called for yssSre gold and
foreign exchange than Germany was
able to earn. Consequently there was
nothing left with which to pay foreiQy
private creditors. Therefore IL is plain
enough that the first beneficiaries OF
lContinued on Fourth rage.)