Evening star., 1920-07-12
SPA CONFERENCE
| FACING DEADLOCK
ON COAL QUESTION
German Reparations Plan
Not FavorabIy Viewed by
Allied ENJOYS.
BY the Associated Press.

bH The Associated Press.
SFA. Belgium, July 12.-Prolonga-
ton of the allied-German conference
here for another day or two and pos
sibly longer seemed probable today
because of the inability of the con-
ferees so far to reach an agreement
over the question of coal deliveries
by the Germans and the reparations
plan in general.
Il am not returning to Paris for the
national fete of July H." said Pre-
mier Millerand after this mornings s
meeting held by the premiers with
out the presence of the German del
egates. Il am going to stay and fight
this thing out"
The allied premierS, following this
meeting, countermanded the special
trains they had ordered for this eve
ming and tomorrow and it appeared
that the conference would likely con-
tinue until Thursday at least
German ENJOYS Called In.
The morning meeting of the premiers
took the place of what had been ex-
pected to be full session of the con-
ference. The Germans were at first
informed that the full meeting had
later the allied ministers decided to
invite Chancellor Fehrenbach and For
eign Minister SimonS to meet them
this afternoon in a restricted confer
ence, without the presence of the other
delegates.
The allied ministers, it appears, are
not very favorably impressed by the
German reparations plan. The prevail
ing view, the correspondent was in
formed. was that the plan was some
what indefinite on the essential finan-
cial points.
Another Plan In Reserve.
1t is understood that the German
delegates have in reserve another plan,
tance than the plan submitted yester-
day. The plan now before the confer
ence is considered a substitute for this
original plan, which the Germans are
withholding, being unwilling to dis
close the original proposition because
they were not given satisfaction on
the coal question.
1t seems even possible that the trou-
bic over the coal question may re-
suit in the prolongation of the con-
ference. The feeling in French cir
cles is said to be that from the stand
point of France. the conference up
to the present time has been with
out fruitful result.
Premier Lloyd George, who was
slightly indisposed yesterday. was
present at today's meeting of the pre-
miers.
Financial Capacity Gauged.
Germany can fulfill future engage
ments only if they are based on her
outlining the Berlin governments
plan for reparations submitted to the
allied premiers. The German budget
must balance. the statement insisted,
or there would be a rapid increase in
the floating debt and consequent in
f1ation that would neutralize her ca
pacity to pay. There must also. it
was asserted. be no further diminu-
ton in the fundamental basis of Ger
man political economy, which are al
ready much weakened
Assuming that Germany's ability to
pay is used as a basis, the statement
asked that reparation obligations be
expressed in annuities. the minimum
of which would be fixed, and the OBJ
legation to pay such annuities limited
to thirty years. Stipulation was made
that the minimum of the annuities be
fixed according to Germany's finan-
cial capacities. and. therefore, com
prise all obligations in money and
kind according to the treaty of Ner
sailles.
Ask Naming of Maximum.
This wou<d relate especially to the
to pay the expenses of
the armies of occupation, which are to
be covered partly by money and part
ly in kind. which must. in principle.
be credited according to universal
market prices. Request also was
made that the allies fix the maximum
sum due for reparations, after pay
ment of which Germany would be free
from any obligations.
AS the economic development of the
next thirty years cannot be foretold,
the statement asserted a plan must be
worked out by which allied govern
ments would participate in the i'm
of financial and economic
in Germany.
Experts from allied nations and
Germany should meet as soon as pos
sible, the stattlment said, to fix the |
amounts of the annuities to be paid
and to pass on the securities to be de-
manded. Germany's sovereignty in
financial matters must not be in
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