Chapter 36

The sole arrangement which for a time caused heart-burnings in France was that respecting the sums of money which Germany should have been made to pay to her victorious enemies. For the opinions on that subject held by the average man, and connived at or approved by the authorities, were wholly fantastic, just as were some of the expectations of other Allied states. The French people differ from their neighbors in many respects--and in a marked way in money matters. They will sacrifice their lives rather than their substance. They will leave a national debt for their children and their children's children, instead of making a resolute effort to wipe it out or lessen it by amortization. In this respect the British, the Americans, and also the Germans differ from them. These peoples tax themselves freely, create sinking funds, and make heavy sacrifices to pay off their money obligations. This habit is ingrained. The contrary system is become second nature to the French, and one cannot change a nation's habits overnight. The education of the people might, however, have been undertaken during the war with considerable chances of satisfactory results. The government might have preached the necessity of relinquishing a percentage of the war gains to the state. It was done in Britain and Germany. The amount of money earned by individuals during the hostilities was enormous. A considerable percentage of it should have been requisitioned by the state, in view of the peace requirements and of the huge indebtedness which victory or defeat must inevitably bring in its train. But no Minister had the courage necessary to brave the multitude and risk his share of popularity or tolerance. And so things were allowed to slide. The people were assured that victory would recompense their efforts, not only by positive territorial gains, but by relieving them of their new financial obligations.

That was a sinister mistake. The truth is that the French nation, if defeated, would have paid any sum demanded. That was almost an axiom. It would and could have expected no ruth. But, victorious, it looked to the enemy for the means of refunding the cost of the war. The Finance Minister--M. Klotz--often declared to private individuals that if the Allies were victorious he would have all the new national debt wiped out by the enemy, and he assured the nation that milliards enough would be extracted from Germany to balance the credit and debit accounts of the Republic. And the people naturally believed its professional expert. Thus it became a dogma that the Teuton state was to provide all the cost of the war. In that illusion the nation lived and worked and spent money freely, nay, wasted it woefully.

And yet M. Klotz should have known better. For he was supplied with definite data to go upon. In October, 1918, the French government, in doubt about the full significance of that one of Mr. Wilson's Fourteen Points which dealt with reparations, asked officially for explanations, and received from Mr. Lansing the answer by telegraph that it involved the making good by the enemy of all losses inflicted directly and lawlessly upon civilians, but none other. That surely was a plain answer and a just principle. But, in accordance with the practice of secrecy in vogue among Allied European governments, the nation was not informed of these restrictive conditions, but was allowed to hug dangerous delusions.

But the Ministers knew them, and M. Klotz was a Minister. Not only, however, did he not reveal what he knew, but he behaved as though his information was of a directly contrary tenor, and he also stated that Germany must also refund the war indemnities of 1870, capitalized down to November, 1918, and he set down the sum at fifty milliards of francs. This procedure was not what reasonably might have been expected from the leader of a heroic nation stout-hearted enough to face unpleasant facts. Some of the leading spirits in the country, despite the intensity of their feelings toward Germany, disapproved this kind of bookkeeping, but M. Klotz did not relinquish his method of keeping accounts. He drew up a bill against the Teutons for one thousand and eighty-six milliards of francs.

The Germans at the Conference maintained that if the wealth of their nation were realized and liquid, it would amount at most to four hundred milliards, but that to realize it would involve the stripping of the population of everything--of its forests, its mines, its railways, its factories, its cattle, its houses, its furniture, and its ready money. They further pleaded that the territorial clauses of the Treaty deprived them of important resources, which would reduce their solvency to a greater degree than the Allies realized. These clauses dispossessed the nation of 21 per cent. of the total crops of cereals and potatoes. A further falling off in the quantities of food produced would result from the restrictions on the importation of raw materials for the manufacture of fertilizers. Of her coal, Germany was forfeiting about one-third; three-fourths of her iron ore was also being taken away from her; her total zinc production would be cut down by over three-fifths. Add to this the enormous shortage of tonnage, machinery, and man-power, the total loss of her colonies, the shrinkage of available raw stuffs, and the depreciation of the mark.

At the Conference the Americans maintained their ground. Invoking the principle laid down by Mr. Wilson and clearly formulated by Mr. Lansing, they insisted that reparations should be claimed only for damage done to civilians directly and lawlessly. After a good deal of fencing, rendered necessary by the pledges given by European statesmen to their electors, it was decided that the criteria provided by that principle should be applied. But even with that limitation the sums claimed were huge. It was alleged by the Germans that some of the demands were for amounts that exceeded the total national wealth of the country filing the claim. And as no formula could be devised that would satisfy all the claimants, it was resolved in principle that, although Germany should be obliged to make good only certain classes of losses, the Conference would set no limits to the sums for which she would thus be liable.

At this juncture M. Loucheur suggested that a minimum sum should be demanded of the enemy, leaving the details to be settled by a commission. And this was the solution which was finally adopted.[309] It was received with protests and lamentations, which, however, soon made place for self-congratulations, official and private.

The French Minister of Finances, for example, drew a bright picture in the Chamber of the financial side of the Treaty, so far as it affected his country: "Within two years," he announced, "independently of the railway rolling stock, of agricultural materials and restitutions, we receive a part, still to be fixed, of the payment of twenty milliards of marks in gold; another share, also to be determined, of an emission of bonds amounting to forty milliard gold marks, bearing interest at the rate of 2 per cent.; a third part, to be fixed, of German shipping and dyes; seven million tons of coal annually for a period of ten years, followed by diminishing quantities during the following years; the repayment of the expenses of occupation; the right of taking over a part of Germany's interests in Russia, in particular that of obtaining the payment of pre-war debts at the pre-war rate of exchange, likewise the maintenance of such contracts as we may desire to maintain in force and the return of Alsace-Lorraine free from all incumbrances. Nor is that all. In Morocco we have the right to liquidate German property, to transfer the shares that represent Germany's interests in the Bank of Morocco, and finally the allotment under a French mandate of a portion of the German colonies free from incumbrances of any kind.... We shall receive four hundred and sixty-three milliard francs, payable in thirty-six years, without counting the restitutions which will have been effected. Nor should it be forgotten that already we have received eight milliards' worth of securities stolen from French bearers. So do not consider the Treaty as a misfortune for France."[310]

Soon after the outburst of joy with which the ingathering of the fruits of France's victory was celebrated, clouds unexpectedly drifted athwart the cerulean blue of the political horizon, and dark shadows were flung across the Allied countries. The second-and third-class nations fell out with the first-class Powers. Italy, for example, whose population is almost equal to that of her French sister, demanded compensation for the vast additions that were being made to France's extensive possessions. The grounds alleged were many. Compensation had been promised by the secret treaty. The need for it was reinforced by the rejection of Italy's claims in the Adriatic. The Italian people required, desired, and deserved a fair and fitting field for legitimate expansion. They are as numerous as the French, and have a large annual surplus population, which has to hew wood and draw water for foreign peoples. They are enterprising, industrious, thrifty, and hard workers. Their country lacks some of the necessaries of material prosperity, such as coal, iron, and cotton. Why should it not receive a territory rich in some of these products? Why should a large contingent of Italy's population have to go to the colonies of Spain, France, and Britain or to South American republics for a livelihood? The Italian press asked whether the Supreme Council was bent on fulfilling the Gospel dictum, "Whosoever hath, to him shall be given...."

One of the first demands made by Italy was for the port and town of Djibouti, which is under French sway. It was rejected, curtly and emphatically. Other requests elicited plausible explanations why they could not be complied with. In a word, Italy was treated as a poor and importunate relation, and was asked to console herself with the reflection that she was working in the vineyard of idealism. In vain eminent publicists in Rome, Turin, and Milan pleaded their country's cause. Adopting the principle which Mr. Wilson had applied to France and Britain, they affirmed that even before the war France, with a larger population and fewer possessions, had shown that she was incapable of discharging the functions which she had voluntarily taken upon herself. Tunis, they alleged, owed its growth and thriving condition to Italian emigrants. With all the fresh additions to her territories, the population of the Republic would be utterly inadequate to the task. To the Supreme Council this line of reasoning was distinctly unpalatable. Nor did the Italians further their cause when, by way of giving emphatic point to their reasoning, their press quoted that eminent Frenchman, M. d'Estournelles de Constant, who wrote at that very moment: "France has too many colonies already--far more in Asia, in Africa, in America, in Oceania than she can fructify. In this way she is immobilizing territories, continents, peoples, which nominally she takes over. And it is childish and imprudent to take barren possession of them, when other states allege their power to utilize them in the general interest. By acting in this manner, France, do what she may, is placing herself in opposition to the world's interests, and to those of the League of Nations. In the long run it is a serious business. Spain, Portugal, and Holland know this to their cost. Do what she would, France was not able before the war to utilize all her immense colonial domain ... for lack of population. She will be still less able after the war...."[311]

The discussion grew dangerously animated. Epigrams were coined and sent floating in the heavily charged air. A tactless comparison was made between the French nation and a _bon vivant_ of sixty-five who flatters himself that he can enjoy life's pleasures on the same scale as when he was only thirty. Little arrows thus barbed with biting acid often make more enduring mischief than sledge-hammer blows. Soon the estrangement between the two sister nations unhappily became wider and led to marked divergences in their respective policies, which seem fraught with grave consequences in the future.

The Italy of to-day is not the Italy of May, 1915. She now knows exactly where she stands. When she unsheathed her sword to fight against the allies of the state that declared a treaty to be but a scrap of paper, she was heartened by a solemn promise given in writing by her comrades in arms. But when she had accomplished her part of the contract, that document turned out to be little more than another scrap of paper. Thus it was one of the piquant ironies of Fate, Italian publicists said, that the people who had mostly clamored against that doctrine were indirectly helping it to triumph. Mr. Wilson, unwittingly sapping public faith in written treaties, was held up as one of the many pictures in which the Conference abounded of the delegates refuting their words by acts. The unbiased historian will readily admit that the secret treaties were profoundly immoral from the Wilsonian angle of vision, but that the only way of canceling them was by a general principle rigidly upheld and impartially applied. And this the Supreme Council would not entertain.

With her British ally, too, France had an unpleasant falling out about Eastern affairs, and in especial about Syria and Persia. There was also a demand for the retrocession by Britain of the island of Mauritius, but it was not made officially, nor is it a subject for two such nations to quarrel over. The first rift in the lute was caused by the deposition of Emir Faisal respecting the desires of the Arab population. This picturesque chief, the French press complained, had been too readily admitted to the Conference and too respectfully listened to there, whereas the Persian delegation tramped for months over the Paris streets without once obtaining a hearing. The Hedjaz, which had been independent from time immemorial, was formally recognized as a separate kingdom during the war, and the Grand Sheriff of Mecca was suddenly raised to the throne in the European sense by France and Britain. Since then he was formally recognized by the five Powers. His representatives in Paris demanded the annexation of all the countries of Arabic speech which were under Turkish domination. These included not only Mesopotamia, but also Syria, on which France had long looked with loving eyes and respecting which there existed an accord between her and Britain. The project community would represent a Pan-Arab federation of about eleven million souls, over which France would have no guardianship. And yet the written accord had never been annulled. Palestine was excluded from this Pan-Arabian federation, and Syria was to be consulted, and instead of being handed over to France, as M. Clemenceau demanded, was to be allowed to declare its own wishes without any injunctions from the Conference. Mesopotamia would be autonomous under the League of Nations, but a single mandatory was asked for by the king of the Hedjaz for the entire eleven million inhabitants.

The comments of the French press on Britain's attitude, despite their studied reserve and conventional phraseology, bordered on recrimination and hinted at a possible cooling of friendship between the two nations, and in the course of the controversy the evil-omened word "Fashoda" was pronounced. The French _Temps's_ arguments were briefly these: The populations claimed occupy such a vast stretch of territory that the sovereignty of the Hedjaz could hardly be more than nominal and symbolical. In fact, they cover an area of one-half of the Ottoman Empire. These different provinces would, in reality, be under the domination of the Great Power which was the real creator of this new kingdom, and the monarch of the Hedjaz would be a mere stalking-horse of Britain. This, it was urged, would not be independence, but a masked protectorate, and in the name of the higher principles must be prevented. Syria must be handed over to France without consulting the population. The financial resources of the Hedjaz are utterly inadequate for the administration of such a vast state as was being compacted. Who, then, it was asked, would supply the indispensable funds? Obviously Britain, who had been providing the Emir Faisal with funds ever since his father donned the crown. If this political entity came into existence, it would generate continuous friction between France and Britain, separate comrades in arms, delight a vigilant enemy, and violate a written compact which should be sacred. For these reasons it should be rejected and Syria placed under the guardianship of France.

The Americans took the position that congruously with the high ethical principles which had guided the labors of the Conference throughout, it was incumbent on its members, instead of bartering civilized peoples like chattels, to consult them as to their own aspirations. If it were true that the Syrians were yearning to become the wards of France, there could be no reasonable objection on the part of the French delegates to agree to a plebiscite. But the French delegates declined to entertain the suggestion on the ground that Syria's longing for French guidance was a notorious fact.

After much discussion and vehement opposition on the part of the French delegates an Inter-Allied commission under Mr. Charles Crane was sent to visit the countries in dispute and to report on the leanings of their populations. After having visited forty cities and towns and more than three hundred villages, and received over fifteen hundred delegations of natives, the commission reported that the majority of the people "prefer to maintain their independence," but do not object to live under the mandatory system for fifty years _provided the United States accepts_ the mandate. "Syria desires to become a sovereign kingdom, and most of the population supports the Emir Faisal as king.[312] The commission further ascertained that the Syrians, "who are singularly enlightened as to the policies of the United States," invoked and relied upon a Franco-British statement of policy[313] which had been distributed broadcast throughout their country, "promising complete liberation from the Turks and the establishment of free governments among the native population and recognition of these governments by France and Britain."[314]

The result of the investigation by the Inter-Allied commission reminds one of the story of the two anglers who were discussing the merits of two different sauces for the trout which one of them had caught. As they were unable to agree they decided to refer the matter to the trout, who answered: "Gentlemen, I do not wish to be eaten with any sauce. I desire to live and be free in my own element." "Ah, now you are wandering from the question," exclaimed the two, who thereupon struck up a compromise on the subject of the sauce.

The tone of this long-drawn-out controversy, especially in the press, was distinctly acrimonious. It became dangerously bitter when the French political world was apprised one day of the conclusion of a treaty between Britain and Persia as the outcome of secret negotiations between London and Teheran. And excitement grew intenser when shortly afterward the authentic text of this agreement was disclosed. In France, Italy, Germany, Russia, and the United States the press unanimously declared that Persia's international status as determined by the new diplomatic instrument could best be described by the evil-sounding words "protectorate" and the violation of the mandatory system adopted by the Conference.

This startling development shed a strong light upon the new ordering of the world and its relation to the Wilsonian gospel, complicated with secret negotiations, protectorates without mandates, and the one-sided abrogation of compacts.

Persia is one of the original members of the League of Nations,[315] and as such was entitled, the French argued, to a hearing at the Conference. She had grievances that called for redress: her neutrality had been violated, many of her subjects had been put to death, and her titles to reparation were undeniable. President Wilson, the comforter of small states and oppressed nationalities, having proclaimed that the weakest communities would command the same friendly treatment as the greatest, the Persian delegates repaired to Paris in the belief that this treatment would be accorded them. But there they were disillusioned. For them there was no admission. Whether, if they had been heard and helped by the Supreme Council, they would have contrived to exist as an independent state is a question which cannot be discussed here. The point made by the French was that on its own showing the Conference was morally bound to receive the Persian delegation. The utmost it obtained was that the Persian Minister of Foreign Affairs, Monalek, who was head of the delegation, had a private talk with President Wilson, Colonel House, and Mr. Lansing. These statesmen unhesitatingly promised to help Persia to secure full sovereign rights, or at any rate to enable her delegates to unfold their country's case and file their protests before the Conference. The delegates were comforted and felt sure of the success of their mission. They told the American plenipotentiaries that the United States would be Persia's creditor for this help and that she would invite American financiers to put her money matters in order, American engineers to develop her mining industries, and the American oil firms to examine and exploit her petrol deposits.[316] In a word, Persia would be Americanized. This naïve announcement of the rôle reserved for American benefactors in the land of the Shah might have impressed certain commercial and financial interests in the United States, but was wholly alien to the only order of motives that could properly move the American plenipotentiaries to interpose in favor of their would-be wards.

The promises made by Messrs. Wilson, House, and Lansing came to nothing. For months the Persian envoys lived in hope which was strengthened by the assurances of various members of the Conference that the intervention of Mr. Wilson would infallibly prove successful. But events belied this forecast, whereupon the head of the Persian delegation, after several months of hopes deferred, quitted France for Constantinople, and his country's position among the nations was settled in detail by the new agreement.

That position does undoubtedly resemble very closely Egypt's status before the outbreak of the World War. And Egypt's status could hardly be termed independence. Henceforward Great Britain has a strong hold on the Persian customs, the control of the waterways and carriage routes, the rights of railway construction, the oil-fields--these were ours before--the right to organize the army and direct the foreign policy of the kingdom. And it may fairly be argued that this arrangement may prove a greater blessing to the Persians than the realization of their own ambitions. That, at any rate, is my own personal belief, which for many years I have held and expressed. None the less it runs diametrically counter to the letter and the spirit of Wilsonianism, which is now seen to be a wall high enough to keep out the dwarf states, but which the giants can easily clear at a bound.