New-York tribune., 1920-05-17
Britain and France Agree
on Plan to Capitalize
German Indemnity and
Apply Amount on Loans
Cash for Europe;
Bonds for America
Reparation Will Be Def
nitely Fixed; Priority
for French Abandoned
Special Gable to The Tribune


HYTHE, England, May 16.-The
Allied premiers at their final confer
once at Lympne to-day decided the
questions of the payment of repara-
tons by Germany and of the settle
ment of the debts of the Allied
powers. The latter decision is of
the utmost Importance and signifi-
cance to the United States, implying
as it does the possibility either of
the postponement of payment of the
debts which the Allied governments
have contracted in America or the
purchase by the United States of
bonds issued on the prospective
reparation payments to be made by
Germany.
The plan Of Premier Millerand of
France for the priority Of France in
he payment of German reparations was
trapped for q substitute compromise
under which the minimum sum which
Germany must pay will be fixed and the
method of payment specified. Under
rae plan the repayment of loans among
ne Allied nations-exclusive of the
Cnited States-will automatically follow
he receipt by debtor countries of in
ilments on the German reparations
litigation.
Exceptions Provided For
The only exceptions which will be
made to this plan are the old agree
ment of Paris, which gave the cost of
maintenance of the armies of occupation
priority claim on the German pay
ments and allowed Belgium the first
S500,0N0,000 that Germany hands over.
and the Anglo-French agreement that
France would take 55 per cent and
Great Britain % per cent of the Ger
ran money.
In an official statement issued after
he adjournment of the conference
Early this afternoon these three re-
lated declarations were set forth:
The resources necessary for the
payment Of reparations money by
Germany should be made effectively
available without delay.
1t is important to arrive at a set
tiement which will embrace the whole
body of international liabilities.
The Anglo-French financ al experts
will determine methods of the capi-
alization Of Germany's debts
Although there is yet no official def
nition of exactly what "the capitaliza-
tion Of Germany's debts" means, it is
understood to imply a plan by which
the Allies either directly or indirectly
could raise money Immediately on the
security offered by future German pay
ments on the reparations bill. Should
HnEp 1%o.l, -
british and French financial experts
have made recommendations to their
respective governments, then it is al
most certain, it is believed here, that
there Will be some conversations be-
tween the British, the French and the
Warrington governments or some ap-
peal to American investors, with q view
to tightening the burden on the Euro
pean governments.
Menace Of Bolshevism Raised
In French and Italian circles at the
conference just concluded the opinion
was frequently and repeatedly ex-
pressed that the United States should
agree to the plan now being prepared
TO relieve Europe of the immediate
pressure OF debt as about the only al
.erha'lVe to serious risk of poverty
that would induce Bolshevism,
:. Inc other point decided. which looms
Oig IN the minds of both Allied and
uefman leaders, was the acceptance of
sne principle of fixing q definite sum
whlch Germany must pay. In British
.1lcles vigorous effort is being made
W put down any suggestion that to-
Jay Ia agreement meant Lloyd Georges
eeleat or Mlllerand's plan for PAYMENT
from Germany, increasing annually in
proportion to that country's prosneritv
is insisted that the agreement
reached was fair and reasonable
compromise solution Of a very tanolad
problem" WHY ''"s'eo
soeiatas aiaaaE' Eng, May 1s (By The AS
Cea Csnase Press). = Premier Lloyd
adv;ssr. ifemler Millerand and their
the as nas. conferred here this morning,
o'.loa,. n,eeung lasting until nearly
rama a., Alter the conference M. Mile
anu mis- suite left for home.
Official Statement Issued
closnn o,hcial statement issued at the
>'VSS "r, OF the conference said:
msn.l ne British and French govern
i. is 'eIoghize on the one hand that
ration 'he general interest that repa
bv w. ior losses and damages caused
a. le war should be secured as soon
Wow wpossiole, and with this object in
be ny IS necessary resources should
/ osI.meaue "aue effectively available without
desyra',da ana on the other hand that it is
Dosi,In!e Germany should be put in a
tonor"U,'h 10 regain her financial au-
obTcass; oy speedy fulfllment of her
y, IN Inc two governments are further
sol. oplhlon that in order to provide
gbichu non Tor the economic difficulties
s.nsn. are gravely weighing upon the
orJsn situation of the world. and in
,bs 10 mark definite beginning Of
,iv %e era of peace. it is important tn az
hr.e at settlement which shall an,
.;ae s;,ace The whole bodv of the ;ntarna -m
sss isNt .loaNties which have been left
at thes OF the war, and which shall
liouide. same time insure parallel
and ~ on OF the inter-Allied war debt
I cnn,ua1, reparation of the debts of the
1 4. Experts to Devise Plan
III. ..cordingly, experts from each Of
prs,s"o "o countries will be charged to
by pT'e M Immediately for examination
aelr governments proposals for
msn ,ne minimum total Of the Ger
q een..ot aeot which shall be capable of ac-
timo tioaISce by the Allies and at the same
,s"i sv De compatible with Gcrmanv's ca
q ii nav. 70 pay, TO determine the method
4 aanv;, ;yhlsnt and capitalization of Ger
n oep' winch will be best calcu-
CONTINUED "a pace seora