Notes on International Affairs
From May 23 to June 23
Prepared by Allan Westcott, Professor, U. S. Naval Academy
Renewed Reparations Conferences
Germany’s Latest Offer. - Another German reparations proposal was submitted by Germany on June 7. In brief Germany offered the revenues of her railway system, and a first mortgage on German real estate, together with customs and excise receipts, as security for payments amounting to about 1,500,000 gold marks each year. For further discussion of this system of payment by guaranteed annuities, the note proposed a renewal of direct conferences.
Allies Consult On Reply. - Before replying to the German offer of June 7, the French and Belgian Governments submitted their views to Great Britain, in an effort to secure once more a united Allied front on the reparations question. The French and Belgian Governments insisted that the German policy of passive resistance in the Ruhr must be abandoned as a preliminary to any conversations, and that evacuation of the Ruhr must be determined by actual payments on the part of Germany.
In subsequent Allied discussions in London no final decision was reached. Prime Minister Baldwin on June 15 indicated that the British Government did not intend to give unqualified approval to the occupation of the Ruhr, and that if France were unwilling to make further concessions as a means of reopening reparations discussions, the Prime Minister would announce a separate British policy.
Great Britain
The New Baldwin Cabinet. - Following his appointment as Prime Minister on May 23, Stanley Baldwin was unanimously elected head of the Conservative party at a meeting held in the Cecil Hotel on May 28. Lord Curzon remained in the Cabinet as Minister of Foreign Affairs, and L. S. Amery as First Lord of the Admiralty. Sir Robert Cecil entered the Cabinet as Lord Privy Seal with the understanding that he should represent the Government in the League of Nations Council. The Chancellorship of the Exchequer was filled by the appointment of Reginald McKenna, a former Liberal, whose acceptance greatly strengthened the new Ministry.
Russia Yields to British Demands. - In a note to the British Government on May 23 Russia made satisfactory concessions in regard to most points in dispute between the two governments. She offered compensation for trawlers sunk, withdrew the objectionable letters written to British representatives, and suggested a special conference concerning Soviet propaganda in the near East. In reply to a further British communication, it was announced on June 3 that Russia had consented to reduce the personnel of her legations in Afghanistan, Persia, and Khiva (Russian Turkestan) and to consult the British government in the selection of their successors.
Near East
Greco-Turkish Agreement. - A threatened reopening of hostilities between Greece and Turkey over the question of payment of war damages was averted on May 26 by an eleventh-hour compromise. Greece agreed to cede to the Turks the town and district of Kariaghatch, opposite Adrianople on the Maritza River, provided Turkey gave up all claims for war indemnity. This decision, however, involved difficulties with Bulgaria, whose rail exit to the Aegean will now cross both Turkish and Greek
territory.
Bulgarian Cabinet Overthrown. - The Stamboulisky Cabinet in Sofia was overthrown on June 9 by opposition forces, and most of the ministers and leaders of the Bulgarian Peasant party were put under arrest. A new cabinet, chiefly bourgeois in complexion, was organized under Professor Zankof of the University of Sofia. The overthrow of the Peasant party government resulted from dissatisfaction in the army and the cities against the strictly agrarian policies of the former regime, and marked the return to power of formerly pro-German and strongly Nationalist elements in Bulgaria. The former Premier, Stamboulisky, was shot and killed on June 14 in attempted escape after his capture.
Far East
Resignation of Chinese Cabinet. - On June 6 the Chinese Cabinet under Premier Chang Shao-tseng resigned. The Cabinet was assembled by President Li Yuan-hung on January 4 of this year. Its fall was brought about by conflicts between the Premier and the Chihli war lords over the methods of bringing about unification, and by difficulties over the release of foreigners held by the Shantung bandits. President Li Yuan-hung was subsequently forced to resign and fled from Peking to Tien-tsing. Later he withdrew his resignation, on the ground that it was obtained under duress.
Bandit-Captives Released. - On June 12 and 13 all the remaining foreigners in the hands of Chinese bandits were released, as a result of extended negotiations in which Mr. Roy Anderson, an American newspaper man, took a prominent part. At that date about 2,000 of the bandits were taken into the Chinese army, in fulfillment of the terms of the surrender.
United States
Austrian Loan Over-Subscribed. - Of the total $130,000,000 loan for Austria, $25,000,000 was put on the American market in the first week of June. As a result of the sale, the bonds were about four times over-subscribed, the subscriptions amounting to about $100,000,000.
Army Costs Agreement Signed. - On May 25 the American and Allied delegates at Paris signed the terms finally agreed upon for payment of the $245,000,000 due to the United States from Germany for the cost of the army of occupation.
In substance it provides that the net cost of the American Army occupation shall be paid out of the Allied receipts from Germany in twelve annual installments. During the first four years America will be paid her installments up to twenty-five per cent of the cash receipts from Germany if any is left after current cost of the Allied armies occupation is paid. For the other eight years payments to America will constitute a first charge on all cash payments by Germany.
America does not share in the payments in kind or through the working of the Allied recovery acts. Washington gets paid when Germany pays cash. When Germany pays no cash, as at present, the United States gets nothing. In as much as it is not probable that Germany will resume cash payments for sometime, the United States will get nothing for perhaps four years.
The agreement states that if Germany does not pay enough in the first four years so that twenty-five ·per cent will meet what is due America (and she will not) the deficit shall be carried over to last eight years. In case deficits occur in the last eight years, they are to bear four and one-half per cent interest until paid.
This agreement is a very favorable settlement for the United States, and the signature today shows the earnest desire of the French and British Governments to remain on good terms with the American Government. No one who has followed the negotiations has much doubt that the agreement was reached because of political reasons rather than because the Allies regarded the American contention as just. - New York Times, 26 May, 1923.
Proposed Extension of Three-Mile Limit. - In the midst of the confusion over the ship liquor ruling of the United States Supreme Court and the Treasury regulations, the Harding Administration has formulated a plan which, its authors hope, may wipe out international complications and solve the problem of smuggling along American shores.
The State Department has approached the major maritime powers, including Great Britain, France and Italy, with a proposal for a reciprocal treaty arrangement whereby the three-mile limit for search and seizure of illicit goods would be extended to twelve miles, while the United States would permit foreign vessels to bring sealed sea stores of liquor into American harbors and territorial waters.
The proposal made informally to diplomats of the maritime powers is essentially a trading matter, as it demands a give and take on the part of this Government and the other Powers.-New York Herald, 13 June,
1923.