NOTES ON INTERNATIONAL AFFAIRS FROM AUGUST 5 TO SEPTEMBER 5
Prepared by Allan Westcott, Professor, U.S. Naval Academy
GERMAN REPARATIONS
No Decision at London.—The meeting of Allied premiers held in London during the week of August 7-14 failed to reach decision on the question of a delay in German reparations payments. The proposals for further guarantees made by France, including control of German mines and forests and a customs barrier between the occupied territory and the rest of Germany, were disapproved by a committee of experts by a vote of 4 to 1. Without such guarantees Premier Poincare refused to consent to a moratorium.
Reparation Commission Grants Delay.—Upon the failure of the London Conference, the question of delayed payments went back to the Reparation Commission. The latter first sent the British and French Commissioners to Berlin for further study of German finances, and then in session in Paris on August 27 called upon Germany for further proposals. Germany offered guaranteed increased deliveries of coal and timber in lieu of cash payments.
Finally on August 31 the Commission announced a decision, based on Belgium's compromise proposals, by which Germany was released from further payments, amounting to about 250,000,000 gold marks, for 1922. Belgium, with priority claims for this amount, agreed to accept six months' Treasury bills instead. The decision regarding a further moratorium was held up pending reforms in German finances. Up to the last France threatened independent action against Germany, Premier Poincare consenting to the commission's decision only upon realization that an independent course on the part of France would destroy Allied solidarity and virtually tear up the Versailles Treaty. The text of the decision follows:
The Reparation Commission, after examining the new request for a moratorium, dated July 12, 1922, and taking into account the fact that the German State has lost its credit, both internal and external, and that the mark has depreciated continuously down to three one-thousandth of its normal value, decides:
Firstly—to defer its decision on the request of the German Government until the Commission has completed its scheme for the radical reform of German public finances, including:
- Balancing of the budget;
- In the event of the Governments represented on the Reparation Commission giving their prior consent thereto, reduction of Germany's foreign obligations insofar as may be considered necessary for the restoration of her credit;
- Currency reform;
- The issue of foreign and internal loans in order to consolidate the financial situation.
Secondly—With a view to giving time for reparations and the carrying out of the measures referred to under paragraph 1 above, the commission agrees to accept in payment of the cash installments falling due August 15 and September 15, and, unless in the meantime other arrangements are made, of the further cash installments falling due between October 15 and December 31, 1922, German Government six months' Treasury bills, payable in gold and guaranteed in such manner as may be agreed upon between the German Government and the Government of Belgium (to which Power the payments have been assigned), or, in default of such agreement, by the deposit of gold in a foreign bank approved by Belgium.
Pre-War Debt Payments.—On August 18 a joint Allied note was sent to the German Government stating the decision of Allied experts regarding payments by Germany on pre-war debts owed by German nationals to Allied nationals. The decision was that Germany must pay within one month the £2,000,000 due on August 15, but that thereafter the various Governments should make separate arrangements with Germany subject to the approval of the Reparation Commission.
On August 27 it was reported that a settlement with France was in prospect, and that the French reprisal measures against Germans in Alsace would be suspended.
French Debt Mission to America Recalled.—On August 17 Premier Poincare ordered the French Debt Commission in the United States, headed by M. Jean V. Parmentier, to return to Paris. M. Parmentier was empowered only to lay the French financial situation before, the U.S. Refunding Commission, and apparently also to show that France could not pay her debt to America unless Germany fulfilled her obligations to France. The recall, however, was not regarded as an interruption in negotiations, which would be renewed after further decision in the matter of German payments.
German-American Claims Settlement. Washington, August 10.—The signing in Berlin today of an agreement between representatives of the United States and Germany for the determination of the amount of American claims against Germany was announced this evening by Secretary Hughes.
The agreement provides for a mixed claims commission of two commissioners, one to be named by the United States and the other by the German Government with an umpire to settle matters on which the commissioners cannot agree.
President Harding today named William R. Day, Associate Justice of the United State Supreme Court as umpire acting upon the expressed desire to have an American citizen appointed.
There appears to be no intention on the part of the Administration to make the operation of the agreement contingent upon ratification by the Senate. The agreement, in fact, itself provides that it shall "come into force on the date of its signature."
The commissioners meet at Washington within two months after the coming into force of the agreement.
IRELAND
Death of Irish Leader.—Arthur Griffith, founder of the Sinn Fein movement, president of the Dail Eireann Cabinet, and leader of the Free State party in Ireland, died on August 12 from the effects of a slight operation for tonsillitis aggravated by a general breakdown in health. Griffith's death was a serious loss to the cause of the Free State and the Anglo-Irish Treaty. He was buried on August 16 in Glasnevin Cemetery, the burial place of Daniel O'Connell and other Irish patriots.
Ten days after Griffith's death, on August 22, Michael Collins was killed in an attack upon his party by rebel forces near Cork. Collins had left Cork and was proceeding southward to inspect military positions when his party in automobiles was ambushed. Collins was commander-in-chief of the National Irish Army, finance minister in the Dail Eireann Cabinet, and after Griffith's death head of the Irish State. Upon Collins' death William T. Cosgrave, who with Collins and Griffith was one of the signers of the Anglo-Irish Treaty, became head of the Government until the meeting of the Dail Eireann Parliament on September 9. Richard Mulcahy was made commander-in-chief of the Free State army.
During August the republican forces in Ireland were driven from Cork and other strongholds and almost reduced to guerilla warfare. With the capture of Waterville on the Kerry coast, on September 3, five of the cables which for three weeks had been held by the rebels, were released.
AUSTRIA
Government Seeks Foreign Support.—The Austrian government at the close of August undertook a policy of sounding her territorial neighbors with a view to economic assistance, Chancellor Seipel in turn visited Prague, Berlin, and Rome with a warning that Austria's collapse was at hand and that parts of her territory were likely to break away or be seized by other states unless support were forthcoming.
There were reports of economic alliance between Austria and the Little Entente, and on the other hand of an understanding between Italy and Austria. Italy indicated that she was unalterably opposed to any union of Austria and other Danube states, in accordance with the French policy of building up a Central European Confederation against Germany. Such a confederation, with Jugo-Slavia included, would also be anti-Italian. In a note to the powers, Italy stated that Austria's union with Germany or entry into the Little Entente would be regarded as a casus belli.
Austria's difficulties will come before the League of Nations Assembly in September. At a meeting of the League Council on August 31, it was decided that a report by a finance committee would be necessary before a decision could be taken in the matter of lending aid.
RUSSIA
Military Clauses in Russo-German Treaty.—From Constantinople on August 21 came a report of the revelation of military clauses in the Russo-German Treaty of Rapallo, despite the denials of the Russian and German foreign offices. The report cites a document issued by Karl Radek outlining five concessions to Germans in the Ukraine and Caucasus, involving extensive colonization by German reservists. These concessions, according to Radek, are recompense for "Germany's vast military and economic aid, which we already begin to receive."
Proposed American Commission to Russia.—The U.S. State Department on August 30 announced that through Ambassador Houghton at Berlin informal inquiries had been made as to the attitude of the Soviet authorities should the United States consider sending an expert technical commission to study the economic situation in Russia. Nothing was done in the matter after the Russian reply. This was in effect that the commission would be received only on a reciprocal basis, i.e., on condition that Russia be allowed to send a commission to America.
NEAR EAST
Enver Pasha Reported Slain.—According to a Moscow despatch of August 16, Enver Pasha was killed in Bokhara on August 4 in a cavalry attack on Soviet troops.
Enver Pasha was one of the leaders of the young Turks who dethroned Abdul Hamid. He was chief of staff of the Turkish Army in 1913-14 and chiefly blamed for Turkey's entry into the war on the side of Germany. After the war Enver fled from Turkey and was engaged in intrigues with the Soviets, who later accused him of treachery. His last effort was to become Emir of Turkestan.
Turco Greek Peace Proposals.—London, August 21.—A joint invitation will, it is expected, be dispatched in ten days or a fortnight by Great Britain, France, and Italy to Greece and both Constantinople and Angora Turks to attend the conference to be held at Venice on the Near Eastern situation. The conference was suggested by the three Allied High Commissioners at Constantinople, Sir Horace Rumbold, General Velle and Maruis Garroni, and has been agreed to by the Allied Governments.
The object of the conference is not to make definite peace, but to propose ground for a full-fledged peace conference. The Allies will insist that a declaration of armistice shall be one of the conditions imposed and will not listen to the Angora demand for the evacuation of Asia Minor by the Greeks before the conference comes together.
The basis of the conference will be proposals for a settlement of the Near East situation made in March by the allied foreign Ministers at Paris. These included the retirement of Greece from Smyrna, the withdrawal of the .allied troops from Constantinople to the Gallipoli Peninsula, and the demilitarization of zones between European Turkey and Grecian Thrace along the southern shore of the Dardanelles.
Representatives of the International Red Cross, which is to inquire into the alleged massacres of Greeks in Asia Minor, arrived at Constantinople last week and are now awaiting word from Angora as to how far they will be permitted to go in making their investigations. The question of who is to provide the funds for their expenses has also been raised.—New York Times.
Renewed Turkish Offensive.—On August 4, the Greek Government in a note agreed to relinquish its designs against Constantinople in view of the attitude of the Allied powers.
While the Greek forces were weakened by the concentration in Thrace, the Turkish Nationalists on August 27 took the offensive in Asia Minor, and on that date captured Afium Karahissar, an important strategic point at the junction of the Smyrna branch and the main line of the Bagdad railway.
FAR EAST
Union of Peking and Canton Leaders.—On August 10 Sun Yat-sen, after the defeat of his forces by General Chen-Chiung-ming, left his cruiser in Canton Harbor and went to Shanghai aboard a British gunboat. Subsequently it was reported that Sun was in friendly negotiations with President Li Yuan-hung in Peking and would probably go north in person. General Wu Pei-fu, chief sponsor of the northern government, on August 21 endorsed Sun's proposals for a parliament free from outside influences, self-government of the provinces in place of the Tuchun or military governorship system, and conversion of the provincial armies into labor battalions.
In the meantime the Peking Government was reported in serious difficulties owing to the defiance of military leaders, lack of funds to pay civil employees and army, dissension in parliament between northern and southern groups, and renewed operations of the Manchurian rebels under General Chang Tso-lin.
UNITED STATES AND LATIN AMERICA
Secretary Hughes at Brazil Centennial.—Secretary of State Hughes sailed from New York on August 25 as head of the special American mission to the Brazil Centennial celebration at Rio de Janeiro. Secretary Hughes' visit recalled the coming of Emperor Don Pedro of Brazil to America at the time of the American Centennial in 1876.
INTERNATIONAL PROBLEMS
Ratification of Arms Treaties. London, August 1.—Formal ratification of the Washington armament treaties by Great Britain was completed today and copies of them signed by King "George will be sent to Sir Auckland Geddes at Washington in the diplomatic bag by the next steamship.
The ratification has taken some months because it was necessary to obtain the formal assent of the Dominion governments and action by the Dominion parliaments to make the terms of the agreements affective.
Tokio, August 10 (Associated Press).—As soon as ratifications of the. Washington Arms Conference are exchanged by the United States, Great Britain, and Japan, the Japanese Admiralty will put into effect plans already made for scrapping war tonnage under the naval limitation program.
An Admiralty official explained that until these three powers took final action, Japan did not feel justified in scrapping a single new ship. He said, however, that Japan was uninfluenced by what France might be disposed to do.
A strong party here would favor making the five-power treaty a three-power one should France and Italy fail to ratify.
Washington, August 10 (Associated Press).—Although officials of the Washington Government are anxious that the Naval Limitation Treaty shall come into force at the earliest practicable moment, they have made no plans for an exchange of ratification until all five of the signatory powers are ready to record formal approval.
To await action by France and Italy, as well as by Japan and Great Britain, it is pointed out, not only would be in -accord with the earnest desire here for consummation of the naval program laid down by the Washington Conference at the instance of the United States.
Should Japan formally suggest an earlier exchange of ratifications by the three powers which are principals in the 5-5-3 arrangement, it is indicated that the proposal would receive careful consideration by State and Navy Department officials. In that connection it is recalled that the American, British, and Japanese delegations to the conference agreed that the 5-5-3 ratio should stand as applying to the three powers regardless of the policies of France and Italy, and it is not doubted that a three-power treaty on the subject would be possible should permanent obstacles block ratification of the five-power arrangement by France or Italy.—New York Times, November 8.
Meeting of League of Nations Assembly. Geneva, August 18 (Associated Press).—South America probably will play the leading role at the third assembly of the League of Nations, which opens here on September 4, in consequence of the numbers of questions of world-wide importance which have been placed before the League by the South American members.
A formal application from Hungary for membership in the League has been received and will be acted on at the September meeting.
Among the questions which South American members have placed before the League are Uruguay's proposals for an American League of Nations within the League, the extension of the Washington naval accord to all other naval powers, which would include a number of South American powers, and the relation of the forthcoming Santiago (Chile) conference to the League and its plan for world disarmament.
So important a place does South America occupy on the program of the third assembly that a movement has been started to elect a South American president of the body, Augustin Edwards, Chilean minister to Great Britain, who took such a prominent part in the last assembly, is prominently mentioned for the post.
Control of Cables. Williamstown, Mass., August 15.—The Institute of Politics centered its interest today on the discussion at the Round Table on International Electrical Communications Service, where Walter S. Rogers, American delegate to the International Communications Conference in 1920, reminded the institute of other post-war problems, still unsettled, in which the American viewpoint had encountered an obstinate resistance.
It was not till America entered the war, according to Mr. Rogers, that Great Britain diverted the German cable hitherto connecting the Azores with New York so that it now runs into Halifax and forms a part of the "British All-Red Cable Route" to the Pacific. The American peace envoys, he said, contended in vain that this was a diversion and interference, not alone with German property, but with the communications route on which the cable life of the United States depended.
In the round table conference Great Britain's practical domination of the world cable routes was shown, as well as the total lack of an independent cable system belonging to America.
Mr. Rogers discussed the political, commercial and military significance of telegraphs, cables, and radio, and some of the national and commercial rivalries growing out of efforts to obtain and control monopolies. He traced the maneuvers which long delayed the efforts of the Germans to utilize the Azores as a relay station for cables to the United States. Referring to the pre-war interruption to cables touching Ireland, he urged the necessity for more cables between the United States and the Azores as an alternative route and as freeing the United States from dependence upon Great Britain for cable landings.
Would Have the Azores Free
"While the British monopolistic concession at the Azores had expired," said Mr. Rogers, "the Portuguese Government hesitates to grant landing rights to American companies, probably because of influence brought to bear by the British cable companies, who look askance at the United States gaining greater cable freedom. In order to permit a wide extension of American cable contacts every effort should be made to make the Azores easily available and free from possible interference by foreign companies or third governments for cable relay purposes, the Azores being ideally located for becoming a great cable center, with cables radiating to various places in Europe, Africa, South and North America.
"The Azores should virtually be internationalized as a cable center and the powers by treaty obligated, even in time of war, not to seize control of the cables landed there. Portugal would gain through the interesting of other powers in maintaining the political status quo of the islands, and because the commerce of the Azores would be aided and tax receipts increased."
At the outset of the war, Mr. Rogers said, Germany had the best radio system and Great Britain the best cable system because of the virtual British world domination. He indicated how this had been built up in detail, and attributed British control largely to the fact that all cables always had been made in Great Britain and sold "laid," as he termed it. In this way the British Admiralty had been able to get full information as to the location of cables all over the world."
In showing the dexterity of the laying of cables with a view to their possible interruption in war, he said that sometimes dummy cables are laid, as, for instance, was the case in the Indian Ocean, where the Germans had cut a cable and no interruption was accomplished. It was the British policy, Mr. Rogers said, to develop cables only that would touch British points. He explained the great centering of cables in London and attributed London commercial supremacy largely to that fact.
Mr. Rogers then went into a discussion of the commercial advantages of cables. He instanced the indispensability to shipping of good cable communications, although ships now were more directly dependent on radio. But always in freighter service, he said, a captain would go to some port and discharge his cargo and await cable instructions, and possibly not return to England for several years. The political importance of electrical services he showed particularly by explaining the links of such services that connected up the entire British Empire.
Commenting on Mr. Rogers' remarks at the Institute of Politics, President Carlton of the Western Union Telegraph Company declared that inadequate American cable communications were due to slow action by the Government. "Apparently Mr. Rogers thinks there is no United States cable policy," said Mr. Carlton. "If he means no government policy, I cordially agree. Whether Mr. Rogers is speaking as an individual or as an employee of the State Department, he knows that the Western Union Telegraph Company has been applying for more than a year for permission to extend its cable system to Northern and Southern Europe, South America, Japan and China.
"So far, and despite almost daily efforts on our part, the State Department has failed to act. Mr. Rogers should know that in 1918 a comprehensive plan of cable extensions was laid before the Government and urged upon Congress. This plan, in brief, contemplated cables to Northern Europe, Southern Europe, Russia, Japan, China and the east and west coasts of South America.
"The plan also proposed a more effective distribution of the present concentrated cable facilities now terminating in Great Britain. Mr. Rogers is apparently unaware of this program. It can be fairly said that before Mr. Rogers can effectively develop interest in what he has called a United States cable program, it will be necessary for him to agitate revision of the procedure of his own, the State Department. Cable expansions can only be made by encouraging private enterprise.
"Private enterprise is not encouraged if the machinery of government is ineffective, slow and un-businesslike, resulting in a year's delay in obtaining the simple right to land and operate a cable about which there is no dispute.
"Mr. Rogers says the British are pre-eminent in the cable business. They are, and it is interesting to contrast the methods that prevail in Great Britain in dealing with cable extension and the methods that prevail in this country. Recently we had occasion to apply to the British Government for right to land a cable. Within twenty-four hours we had the right. Recently we also applied to the Canadian Government for a right to land three cables. This was granted within a few hours. Mr. Roger's department has been considering our applications for cable landings since June, 1921, and we have not heard yet what they are going to do.
"In fine, it is idle to talk about expanding cables or a cable plan so long as the companies are subjected to the delays of the State Department under the operation of the Kellogg act."—New York Times, December 8.