Monday, Jul. 16, 1923

Crisis

The British Foreign Office was the scene of many diplomatic talks. It appears that the entire question was boiled down to the fact that France would have to choose between isolation and joining the long-mooted conference on the Ruhr and reparations settlement.

It is evident that the British Government views with uneasiness the political, financial and economic situation in Germany and is determined at all costs to prevent a German collapse. If necessary, a separate agreement will be signed between Germany and Britain.

In passing, it should be noted that France is now the master of Europe and as such is feared. In short, she controls most of the Continental coal and iron supply; she has the largest army and air force in the world, with the possible exception of Russia. A navy is not a primary need of France. It is thus evident that France's supremacy invited a change in the Balance of Power. To summarize, Britain says to France: "Get out of the Ruhr or we will form an alliance with Germany." These words are the funeral oration of the Entente Cordiale.

France is much divided over the Anglo-French tension. One party wants more time; another wants the Entente patched up at all cost; the majority seem to accept the isolation challenge and advocate a stand against the world if need be. The Government, however, is moderate and inclined to find a basis of compromise if it can do so with honor to its policy. An analysis of political opinion in European countries shows an almost solid backing for a conference to determine the capacity of Germany to pay--a suggestion emanating from U. S. Secretary of State Hughes, now sponsored by the British Government and endorsed by the Pope. As most countries are more or less vitally affected by the prolonged Ruhr row and the concomitant sterility in industry and commerce, it is only natural that they should favor any move calculated to bring the whole business to a speedy end. The Pope has not been idle. The failure of his letter of a week ago to Cardinal Gasparri was no deterrent to him. The Papal Nuncios at Munich, Belgium, Paris, were hard at work. Mgr. Pacelli, Papal Nuncio at Munich, went to Berlin and had a series of consultations with Chancellor Cuno with the result that the German Government semi-officially discountenanced sabotage. The Nuncios at Paris and Brussels were requested to urge that nothing be done by the French and Belgian Governments likely to hinder an eventual understanding with Germany.