NOTES ON INTERNATIONAL AFFAIRS FROM APRIL 5 TO MAY 5
Prepared by Allan Westcott, Professor, U. S. Naval Academy
WORK OF GENOA CONFERENCE
Conference Organized.—The Genoa Economic Conference opened on April 10, with Premier Facta of Italy as presiding officer. Each of the Allied powers was allowed five official delegates, and the same number was allowed to Germany and Russia, other nations of Europe being allotted two each. All the nations of Europe were represented, and also Japan. At the opening session, upon a reference by the Russian delegate, M. Tchitcherin, to Russia's willingness to consider reduction of armaments, the French delegate, M. Barthou, made a strong protest against the inclusion of this or any other subject not permitted by the Cannes resolutions under which the conference was created. The difficulty was smoothed over by the efforts of Mr. Lloyd George, which drew from M. Tchitcherin a promise to keep to the official agenda.
Against French opposition, both Germany and Russia were given representation on the principal committee, which had to do with the practical application of the Cannes resolutions providing for non-interference in internal affairs, assurance of property rights in nations aided, and recognition of debts. On this main committee, in addition to the delegates of the chief powers, representation was also accorded to four of the smaller powers—Poland, Roumania, Sweden, and Switzerland. Four other commissions were similarly organized to deal with Russia, Finances, Economics, and Transport; and these at once took up the recommendations submitted by experts.
Negotiations with Russia.—Throughout the earlier stages of the conference the Russian problem was uppermost. In the beginning, after securing admission of the principle of reciprocity in claims for damages, and after admitting Allied claims amounting to sixty-five billion gold francs. Russia put in a fantastic counterclaim of one hundred and twenty-five billion gold francs against the Allies. This she offered to settle on payment by the Allies of two billion francs, with promise of a loan. Russia further offered to cut her army of 1,450,000 (in reality about 600,000) in half if other nations would do the same. After rejecting these proposals, the delegates of the convening powers set down as conditions to further negotiations that Russia must:
First—Recognize the pre-war debt of Russia.
Second—Recognize the responsibility of the Russian government for the sums borrowed by Russia from the Allies during the war.
Third—Recognize the liability of the Soviet government for property owned by foreigners which the Soviet had nationalized.
That done, Mr. Lloyd George told M. Tchitcherin the Allied powers would consent to receive and consider the Russians' claims against the Allies for the support given to the efforts of Deniken, Kolchak and Wrangel.
Russo-German Compact.—On April i6, evidently worried by informal discussions going on between Russia and the Allied powers, Germany signed a sweeping agreement with Russia. By the terms of this agreement, (1), the two nations mutually agreed to cancel claims for war damages of all kinds, including civil claims based on the effects of war measures, and also expenses of prisoners of war, (2) Germany renounced both public and private claims for damages as a result of post-bellum measures taken by the Soviet government, with the important provision that the Soviet government should not satisfy similar claims made by any other state; (3) resumption of diplomatic relations was agreed upon; (4) both governments agreed to regulate their commercial relations on "the most favored nation" principle; (5) both governments agreed to mutual assistance in economic difficulties, and to hold a preliminary exchange of views before entering into an international general settlement. Following out this agreement, it was announced on April 27 that diplomatic relations between Germany and Russia had been resumed. Professor A. Bernhard Wiedenfeld representing Germany at Petrograd and Leonid Krassin going to Berlin.
Conference Condemns German Action.—Upon news of the Russo-German treaty, representatives of the Big and Little Entente and Portugal signed on April 23 the following letter to the German delegates condemning the separate action of Russia and Germany as "contrary to the spirit of loyal co-operation essential to the restoration of Europe," and excluding Germany from further participation in discussion of matters relating to Russia.
"The undersigned desire to acknowledge the receipt of your reply to their note of April 18, indicating the attitude that they felt bound to adopt in view of the treaty concluded by the German and Russian delegations.
"They note with satisfaction that the German delegation realizes the conclusion of a separate treaty with Russia on matters falling within the purview of this conference renders it undesirable that that delegation should participate in the future in the discussion of the conditions of an agreement between Russia and the various countries represented in the conference.
"The undersigned would have preferred to refrain from further correspondence on the subject. There are, however, certain statements in your letter which they feel it their duty to correct.
"Your letter suggests that the German delegation has been forced to conclude a separate agreement with Russia by the refusal of the members of the delegation of the inviting powers to consider grievous difficulties which the proposals formulated by their experts in London would have created for Germany.
"The undersigned representatives of the inviting powers have made inquiries of the members of their respective delegations and find no shadow of justification for this statement. On various occasions members of the German delegation have met and talked with members of the delegations of the inviting powers; but never has it been suggested that the London proposals afforded no basis for discussion in the conference, and that the German delegation was about to conclude a separate treaty with Russia.
"The allegation that the informal discussions with the Russians on the subject of recognition of debts exposed the delegation to the risk of being confronted with a scheme unacceptable to Germany but already approved by a majority of the members of the commission, is equally unfounded. No scheme would, or could, have been accepted by the conference without the fullest opportunity for discussion in competent committees and subcommittees; and in these Germany was represented on a footing of equality with the other powers.
"A misconception of the scope of the experts' proposals or a misunderstanding of the informal conversations with the Russians might well have justified a request for full discussion in the committees of the conference. They can provide no justification for the action which now has been taken, and the undersigned can only regret that your note should have attempted in this way to impose on the other powers the responsibility for a proceeding so contrary to the spirit of loyal co-operation which is essential to the restoration of Europe.
"The undersigned expressly reserve for their governments the right to declare null" and void any clauses in the Russo-German treaty which may be recognized as contrary to existing treaties. The incident may now be regarded as closed.
"Please accept, Mr. President, the assurance of our high consideration."
The note is signed by the representatives of the Big and Little Entente and Portugal.
Russia Insists on Loan and Recognition.—On April 21 the Russian delegates made a formal reply to the proposals of the creditor Allied governments. Briefly, the Allied terms were: (1) refusal to admit Soviet claims; (2) a promise to scale down the Russian war debt; (3) insistence upon recognition by the Russian government (a) of debts due foreign nationals, and (b) of the right of such nationals to secure their property rights in Russia or get damages for the loss thereof. The Russian reply accepted these terms with the exception of the matter of property rights, in which matter Russia wished to reserve the right of holding the property and paying therefore. Russia also insisted on a foreign loan and official recognition.
Property Terms Cause Difficulty.—As later presented to Russia on May 3, the Allied terms made no mention of a loan and did not release Russia from her war debt. The property clause in these proposals caused great difficulty among the Allied powers, both France and Belgium refusing to sign the draft as finally presented.
Genoa, May 3 (Associated Press).—The complete text of the private property clause which has caused so much controversy is available now. It emphasizes that Soviet Russia has a perfect right to organize such property administration as she wishes, but must return or restore the private property of foreigners, or, failing that, compensate all foreign interests for loss or damage caused them by the confiscation or sequestration of the property.
If it is impossible to reach an accord on the amount of compensation, the former owner can submit the matter to a mixed arbitration tribunal. If the tribunal decides that the compensation offered by the Soviet is just, the former owner must accept it, but if the tribunal rules otherwise, then the former owner can receive from the Soviet government "the right to enjoy his property under conditions at least as favorable for him in everything concerning its use and its free disposition as existed when in previous possession."
If it is found impossible to return the property, indemnity will be fixed by the arbitration tribunal and will be payable in bonds.
The Belgian idea is that insufficient stress is laid on restitution and overmuch on compensation. The Belgians think also that the article as framed gives a leasehold, not freehold, to the former owner when the property is actually returned.
Lloyd George Presents War Dangers.—In a notable speech to British and American press representatives at Genoa on April 26 Premier Lloyd George presented the dangers threatening Europe in the event of failure of the conference.
"The world must recognize the fact," he said, "that Russia and Germany combined contain over two-thirds of the people of, Europe. Their voice will be heard, and the Russo-German treaty is the first warning of it."
As proof of the danger he cited the fact that there was no frontier line from the Baltic to the Black Sea, including the Romanian, Galician, Polish, and Lithuanian frontiers, which had been accepted.
Mr. Lloyd George gave it as his opinion that the disorganization of Europe would affect the entire world, including the United States. He was amazed at people who ignored the portentous fact facing Europe today. Unless Europe reorganized, in other words, unless the Genoa conference succeeded in arranging a compact of peace, he was confident that in his own life, certainly in the life of the younger men present, Europe would again welter in blood.
"We triumphed in the war," he said, "but our triumph will not last forever. If our victory develops into oppression, vengeance will follow, just as Germany's action which started the world war was followed by vengeance.
"We must be just and equitable and show strength. We must realize that Europe is not on good terms and that storms are arising which we must deal with. We had hoped that the end of the great war meant the end of brute force, but unless Europe's problems are solved there is no assurance that force has given way to right."
Finance and Economic Reports.—At the second plenary session of the conference on May 3 reports of the Economic, Finance, and Transport Committees were presented and at once adopted. The contents of the finance report was summarized as follows:
The report contained nineteen articles, the main recommendations of which are: the return of stability of currency, the freedom of banks from political pressure, a meeting in the near future of big central banks, the re-establishment of the gold basis, the balancing of budgets, the fixation of a gold value of monetary units by an international convention coordinating the demand for gold and an effort to obtain the co-operation of the United States.
Resolution No. 11 lays down the draft of the convention suggested for the Central Banks' meeting, emphasizing the necessity for freedom of exchange. Article thirteen nominates the Bank of England to call a meeting of the Central Banks to consider an international monetary convention. The problem of checking the flight of capital to avoid taxation is left to the League of Nations. The artificial control of exchange markets is condemned. Government loans are advised only in exceptional cases, and advice is given to depend on private capital for government financing.
Plan for Non-Aggression Pact.—From British sources it was learned that Premier Lloyd George's chief hope for the Genoa conference was an agreement of the thirty-two European nations represented to sign a "ten-year truce," after the character of the Four-Power Pacific Treaty, promising to refrain from aggression and to consult in case of difficulties. France on May 4 signified her willingness to sign such an agreement under three conditions: (1) that every other European nation sign; (2) that Russia agree to recognize her existing frontier for ten years; (3) that France surrender none of her rights to take action to enforce the Treaty of Versailles.
Germany objected to this last condition, but declared she would accept a provision to the effect that the Allies acting together retain the right to enforce the Versailles Treaty.
IRELAND
Factions Attempt Reconciliation.—During the last two weeks of April, upon the initiative of Mayor O'Neill and Archbishop Byrne of Dublin, several meetings of pro- and anti-free state leaders were held in an effort to reach a compromise agreement on the programme for approaching elections. The plans proposed proved unacceptable to Mr. de Valera.
On May 4, however, a three-days' truce was arranged between leaders of the two factions in the Irish army, during which a committee of five from each side was to consider plans for peace. According to a plan proposed, the cabinet was to be reorganized on a coalition basis; elections to the new parliament would be held in June without contest; and the vote on the treaty would be postponed until later.
GERMAN REPARATIONS
Reparations Order Rejected.—The conclusions of the Reparations Commission as reached in the middle of March gave Germany until May 31 to accept the Allied proposals. Germany's reply received on April 10 definitely rejected the proposed Allied supervision of German finances, and also declared impossible the new taxes to yield sixty billion marks.
Speaking at Bar-le-Duc, France, on April 26, Premier Poincare referred to the right of France to take independent action if necessary in the event of German failure on May 31. To consider the threatened crisis, Premier Lloyd George proposed a meeting of the Supreme Council at Genoa, but this location was unacceptable to the French premier.
American Army Claims Recognized.—On April 11 Secretary Hughes received a note from Lord Curzon signifying that Great Britain had no desire to question American claims for the expenses of its occupation forces, and promising that the Allied governments would consult as to a proper method of payment. Belgium, France, and Italy also gave similar assurances. It was reported that a small part of the American forces would be kept on the Rhine after July 1.
NEAR EAST SETTLEMENT
On April 15 the Allied governments proposed to the Angora Turks that the Allied terms of March 16 for a Near Eastern settlement be given a general acceptance, with subsequent negotiations as to the interpretation of particular details. The Angora government, on the other hand, favored immediate discussions, and proposed Ismid as a meeting place. France and
Italy were reported to approve this plan, whereas England advocated instead a warning to the Turks to cease hostilities, as a preliminary to any negotiations or the evacuation of Asia Minor by the Greeks. Italy's withdrawal of forces from the Meander Valley in Asia Minor compelled the Greek army to extend its lines into this region, which was accomplished without difficulty.
At the beginning of May Italy announced an agreement with Turkey which appeared at first to be a compact similar to that negotiated previously for France. The agreement, however, was at least nominally with the Constantinople government, and proved not objectionable to Great Britain. It provided for concessions to Italian firms in Asia Minor.
UNITED STATES
Revision of Rules of Warfare.—Washington, April 28.—President Harding and Secretary Hughes will reach a decision in the next few days regarding the appointment of a representative or representatives on the international commission to revise the rules of warfare, which, under the agreement reached at the Washington conference, will consist of not more than two members representing the United States, the British Empire, France, Italy, and Japan.
The questions to be considered by the commission are whether existing rules of international law adequately cover new methods of attack or defense since the Hague conference of 1907, and, if they do not, what changes ought to be adopted.
The proposed commission, under the resolution, is at liberty to request assistance and advice from experts in international law and in land, naval, and aerial warfare. On the conclusion of its investigating the members of the commission are to report their findings to their respective governments, and those powers are thereupon to confer as to the acceptance of the report and the course to be followed to secure the consideration of its recommendations by the other civilized powers.—New York Times, 29 April, 1922.
American Society of International Law Washington, April 28.—The effects of the Disarmament Conference on China and Japan, on the status of America in the Far East, and on the development of international law, were brought to the fore at the sixteenth annual meeting of the American Society of International Law, which opened here last night.
"No formal treaty ever accomplished so much by doing to little," said Elihu Root, president of the society in an address on International Law and the Arms Conference." Mr. Root, outlining briefly the main achievements of the conference, stressed the value of the four-power naval treaty in doing away with mutual distrust, bringing about the end of the Anglo- Japanese Alliance as a possible war cloud upon the international horizon and encouraging the nations concerned to think in terms of peace.
Referring to China, Mr. Root said he was a believer in the "uniting of all sections and parties of the Chinese people for the establishment of an effective government which would be the means of bringing China into full possession of the rights and liberties assured by international law to the members of the family of nations, just as Japan has been brought into that family.
Rear Admiral Harry S. Knapp, speaking of the naval treaty, declared that America had been placed in a disadvantageous position by the inclusion of Article XIX, dealing with naval bases and fortifications. By the provisions of this section, the United States fortifications in the Pacific are kept in status quo, and are not modernized as are those of other powers.
"There is no trace of equity for the United States in Article 19," he asserted. "We are the losers in respect to position and resources. The naval treaty marks the decreased influence of the United States in the Far East, and greatly impairs her international prestige."—Christian Science Monitor, 29 April, 1922.
Chili and Peru Negotiate.—A conference between Chili and Peru to settle the long standing dispute over the frontier provinces of Tacna and Arica was scheduled to begin in Washington about May 12. It was hoped that the delegates might reach a settlement by direct negotiations, the United States not taking part unless by specific request.
Wrangell Island Claimed for Canada.—New York, April 28.—The desire to guard Wrangell Island from possible seizure by Japan was one of his reasons for claiming it in the name of the Dominion of Canada, Vilhjalmur Stefansson said today when asked about a report from Washington that the state department was looking into the title to the island, upon the assumption it already was a part of the territory of the United States.
"I can't see how any American claim to the territory can be substantiated," replied the explorer. "A British naval expedition under Captain Kellett declared the island a British possession in 1849. There was no question then about the British character of the island.
"There is a peculiarity about island sovereignties, however. After a period of five years, an island claimed in behalf of any nation becomes a No Man's Land unless properly inhabited and administered in behalf of that nation."—Christian Science Monitor, 29 April, 1922.
U. S. Russian Policy Unchanged.—Speaking on May 1 to a delegation favoring the recognition of the Soviet Republic, Secretary Hughes strongly defended the American government's past policy. Secretary Hughes said in part:
"Our interest in the people of Russia has been manifested in the most unmistakable manner, and I do not think that it requires any statement at this time to indicate how anxious we are for the full restoration of the economic power of the Russian people and for their well-being in every way.
"There is no disposition to interfere with the Russian people in working out their own destiny. There is no desire to interfere in their internal affairs. The principle that is involved is one that we cherish here. Its application has been somewhat complicated by the organized efforts on the part of the Soviet regime to interfere in the domestic affairs of other peoples.
"With respect to intercourse, it is quite evident that you are under a serious misapprehension. There are no legal obstacles to trade with Russia. The obstacles that exist to trade with Russia are due to the situation in Russia, which is in the control of those who dominate the affairs of Russia. Some time ago I pointed out the essential conditions for a return to productivity in Russia. That was not a formula; that was not an artificial conception; that was simply a statement of fact. Russia needs credit, but it is idle to expect credit unless there is a basis for credit. That basis for credit cannot be supplied from the outside. That basis for credit has got to be supplied inside of Russia.
"Political recognition follows the establishment of a sound basis for intercourse. Political recognition is dependent upon the existence of a government that is competent to discharge its international obligations. This whole matter is in the control of those who dominate the affairs of Russia. We are most desirous to do what we can to aid in Russia's recuperation, but they must establish the basis for such recuperation."
FAR EAST
Civil War in China.—Toward the close of April, hostilities opened between the forces of General Chang Tso-lin, governor of Manchuria and chief military leader of northern China, and an army under General Wu Pei-fu, commander of the central Chinese forces. The fighting took place chiefly in the immediate vicinity of Peking and along the Peking-Tientsin railway.
Both generals were in the military combination that upset the pro-Japanese Anfu government at Peking two years ago. Apparently General Wu's fears were aroused by the presence of General Chang's forces near Peking and by his reported alliance with the Canton government under Sun Yat-Sen. Accordingly he struck to capture Peking and to drive General Chang's troops northward. General Wu had strong popular support, while Chang was suspected of being under Japanese influence. The Peking government itself could do nothing more than proclaim neutrality. On May 5 General Wu's forces were victorious and entered Peking.