Arizona republican., 1919-03-02
FRENCH INSIST
 THAT VAR DEBT
 bEAPPORTI0NED
Claim Is Made She Bore Brunt Of Cost - Geo graphical Location Cause Intimate Should Not
 Bear Entire Burden - England Also Sidesteps

PARIS. March 1.-The council of the great powers today began considera- tion of financial and economic prob lens. both as affecting the treaty of peace and permanent conditions after the war This subject is taken up af- ter weeks given to hearings on terri torial questions
 The subject was presented in two specific reports. One was from the financial committee of which Louis Klotz. French minister of finance, is chairman. and Albert Strauss and Norman Davies are the American mem bers. The other was from the econ omic committee of which Albert Gle mental of France is chairman and Ser nard NJ. Baruch, Vance Mccormick, and Dr. A. A. Davis, the American members.
 The financial commissions report was brief, giving the main headings of the vast financial reorganization required. It does not embrace repara tions and indemnities for the war, as those subjects are being considered separately. Most of the headings were presented without recommendations, which are left to the council and the plenary conference.
 One of the main headings concerns war debts and debts made before the war in enemy countries, and whether they are toibe paid or repudiated, and if paid, the manner and priority Of payments. Another heading deals with state property in territory taken over, such as state mines and state rail ways.
 French Want Bulk
 The most important heading is en- titled: "Reapportionment of the war debts of allied countries on a fair basis" While not presented in de- tail this heading opens one of the largest questions presented to the con- ference. According to the French point of view, the huge debts piled up by the war, have fallen unduly on France, which is carrying the largest per capita load. It is maintained, therefore that certain portion of these allied war debts should be pooled, so as to be international obligations, in stead of being carried alone by France. This is on the theory that the war was not fought as defensive measul e by France, but as an international con- flict in which France bore the brunt because of her geographical position.
 Thus far the proposal to redistribute the war burden has not been consid- cred favorably by the British, Ameri ca nor Japanese members. The British do not wish to add to their burdens by taking part of the continental bur dens, while Japan believes she should hold aloof from European indebted ness.
 It was at first suggested that this reapportionment of war debts he in corporated in the peace treaty, but because of differences of opinion this suggestion was abandoped and the present suggestion contemplates a re- apportionment of the debts under the financial section of the league of na- tions which was reported favorably yesterday.
 Discussion Expected
 Neither suggestion, however, has yet been passed upon by the supreme coun- cil or the plenary conference and the magnitude of the proposals leads to the belief that there will be consider able discussion before any such meas ure assumes definite form.
 Another heading of the financial re- port concerns the method of stabilz- ing international exchange which has been seriously deranged by war con- ditions. the issuance of paper currency and other measures. Another heading lis the possibility of interallied loans from neutral states, as it is understood that neutrals have large stocks of money which they may assist in the readjustment of world finances.
 The article concerning enemy fi- nancial interest in backward communi- ties covers such countries os Morocco. Turkey and China, and what should be done with the German Bagdad railroad and German concessions in Shangtung pnd other parts of China
 Most of the foregoing subjects are being considered with a view to per manent conditions after the war, al Enough the requirements concerning the war and pre-war debts of the en- emy may figure in the peace treaty.