The Latest Plan

A storm is brewing. For some weeks now the French and Belgians have had the field to themselves and Britain has maintained an "ominous" neutral attitude on all matters relating to reparations. If Premier Baldwin is re-elected to power or if a Liberal Ministry succeeds, Britain will once more take an active place in the councils of the Allies and, it was stated, she will threaten to end the Entente once and for all unless her wishes are met.

This attitude was aggravated by the recent Franco-Belgian agreement with the German industrialists (TIME, Dec. 3), which was said to constitute a threat to Britain. The line of argument which Britain will adopt is that "the occupation of the Ruhr is illegal and cannot be justified"; that a settlement with the German industrialists was agreed to by them under duress and is 'without effect.'"

Meanwhile France became nervous about the Entente and suggested (through the Reparations Commission) the formation of two committees of experts from representatives of the Allied Powers, with a place on each for the U. S. The first committee would concern itself with finding the means to balance the German budget and stabilize the currency. The second would evaluate German wealth held abroad and would report on the means of getting it back to Germany. No mention was made of Germany's capacity to pay reparations, and the question of the legality of the Ruhr occupation was not raised.

At Washington, U. S. Secretary of State Charles E. Hughes said that the U. S. would not join in any inquiry that is to be restricted in any way by the French Government. The U. S. Government awaited further details and a unanimous invitation from the Allies before accepting or rejecting the new proposal. Secretary of State Hughes' proposal for an unlimited inquiry into German finances had not been withdrawn. "The door is wide open," said an official of the U. S. State Department.

With regard to the Franco-Belgian agreement with the German industrialists, the German Government said, in a letter to the Reparations Commission, that as the Ruhr occupation is illegal, it could not recognize the agreement. The tenor of the German argument was that all deliveries in fuel extracted from the Ruhr and Rhineland must be credited to the Reich's reparation account and not to payment of the occupation expenses.