FROM JUNE 23 TO JULY 23
LONDON CONFERENCE ON DAWES PLAN
Interallied Conference in London.—An interallied conference met in London on July 16 to consider the plan of dealing with German reparations submitted by the committee of experts headed by General Dawes. Included in the conference were representatives of Great Britain, France, Belgium, Italy, Japan, Portugal, Greece, Jugoslavia, and Roumania. Ambassador Kellogg, assisted by Colonel James A. Logan, the American observer on tbc Reparation Commission, was instructed to attend the conference for the purpose of dealing with such matters as affected the United States, and otherwise for purposes of information. In appointing Mr. Kellogg as official representative, the United States Government expressed its earnest desire that the Dawes Plan be adopted.
In preliminary conferences the British and French premiers had reached substantial agreement upon the adoption of the Dawes Plan, but serious differences of opinion remained as to details of its enforcement. The chief difficulty was as to the final authority which should decide whether or not Germany was in default, France preferring that this authority be left with the Reparation Commission with American representation, and Great Britain preferring some final authority less under French control. At the opening session three committees were appointed. The first was to deal with the problem of German defaults; to decide what body was to adjudicate upon whether Germany shall have defaulted under the Dawes scheme and in that case what measures were to be taken.
The second committee was to consider the best way of restoring German economic and fiscal unity as postulated by the Dawes Committee.
The third was to deal with the methods of transferring German payments from the receiving body in Berlin to the creditor countries.
Preliminary Conferences of French and British Premiers.—Prior to the July conference, a meeting of Premier Herriot of France and Premier MacDonald of Great Britain was held in London, on June 22. The two premiers then agreed upon the July meeting, and also agreed to visit Geneva for the opening of the League of Nations Assembly in September. To clear up serious misunderstandings which subsequently developed, the two premiers met again in Paris on July 9, and drew up a memorandum embodying the agreements reached, in substance as follows:
The first four pages of the Premiers' statement gives the genesis of the experts’ plan, citing the Treaty of Versallies on several points and reviewing how the Reparation Commission had called General Dawes and his colleagues together. The purpose of this part of the statement is of course to reassure French opinion that the Dawes plan came under the treaty and therefore left the treaty intact.
Then comes the statement that the allied governments are about to take the action asked by the Reparation Commission. The formal decisions of the two Premiers are next enumerated. It is first set forth that the conference is to be held in London on July 16 and pleasure is expressed at American participation. Then comes a pledge of the two governments to accept the Dawes plan in its entirety. The third paragraph begins: “The arrangements to be arrived at should not affect the authority of the Reparation Commission. It is added that because of special protection to which the lenders of funds are entitled “the two governments will work together to obtain the presence of an American on the Reparation Commission in case the commission is called on to decide whether Germany has defaulted." If this solution is not possible, it goes on, and in case the members of the Reparation Commission cannot reach an agreement the two governments will recommend that the commission call in the general supervisor of payments, who should be of American nationality.”
To the British mind this represents a compromise between the French and English views, although the French never opposed America having full representation on the Reparation Commission. It was impossible to obtain information whether the two Premiers had any assurances from Washington as to full membership in the Reparation Commission, but it is believed they had not.
The joint declaration says that in case of a declaration of German default the interested governments shall confer upon putting into operation penalties to be agreed on. Instead of a statement that the economic penalties should be withdrawn in the Ruhr and Rheinland two weeks after the beginning of operation of the Dawes plan the issue is left to the London conference. Provision is made for the studying of any alterations in the Dawes report which may be judged wise. It is also provided that a special committee of experts shall be set up to give the allied governments advice on the Dawes plan.
Instead of the suggestion in the British Foreign Office statement that the World Court should decide questions of interpretation of the plan, the new agreement says the Governments shall consult their jurists, which means that this issue is left open.
Germany Consents to Military Investigation.—On June 30 Germany sent to the French Government a note consenting to an allied investigation of the military status of the reich, as demanded by the Allied Powers. The note, however, requested that the investigation be completed by September 30.
In reply on July 9 the Allied Powers stated that the inspection would begin on July 20, but that it was not for Germany to make conditions as to its duration, and that transfer of supervision to the League of Nations would depend upon the situation revealed by the investigation.
EASTERN EUROPE
Conference of Little Entente.—A conference of the Little Entente powers began at Prague on July 11. It was stated that one of the purposes of the conference was the establishment of a United Council for Foreign Affairs which should represent the Entente in all international questions. Rumania’s difficulty with Russia over Bessarabia was not discussed, nor was the question of recognition of Soviet Russia.
UNITED STATES AND LATIN AMERICA
Hawaiian Japanese Barred From United States.—According to a ruling of the U. S. Department of Labor, the Japanese in Hawaii, although not affected by the exclusion provisions of the new immigration act of 1924, may still be excluded from the main land of the United States under the General Immigration Act of 1917. According to the 1920 census the Japanese in Hawaii formed 42.7 per cent of the total population and numbered 109,000, having increased since 1910 by 30,000. The present number of Japanese in Hawaii is probably about 125,000. Further immigration of Japanese to Hawaii is prohibited by the new law.
Brazilian Rebellion.—Early in July a serious rebellion broke out in the state of Sao Paulo in Southern Brazil. Rebel forces estimated at over 30,000 occupied the city of Sao Paulo, established a provisional government, and began operations against the port of Santos, the base of communications for Federal troops.
The city of Sao Paulo is a center of the coffee trade, and has had a phenomenal growth in recent years to a population of 700,000. According to a statement from the Brazilian consulate in New York, the unrest in Sao Paulo has arisen partly from political hostility to President Bernardos, and objection to training of the police force by French officers. Federal troops in the state were largely sympathetic with the revolt.
Mexican Debt Agreement Suspended.—On July 1 President Obregon issued a bulletin announcing the inability of the Mexican Government to Pay the interest of $15,000,000 due on Mexico’s foreign debt, according to the agreement entered into last year with an international committee of bankers beaded by Thomas W. Lamont. President Obregon blamed the failure to misrepresentation on the part of his former finance minister, Huerta, and obstruction of a relief loan by American oil interests. Negotiations for a relief loan were under way, but collapsed at about the same time as the expulsion of the British diplomatic representative in June.
The debt agreement, now suspended, provided for an interest payment of $15,000,000 in 1923, to be increased annually by $2,500,000 from 1924 to 1928.