Evening star., 1921-12-06
GERMAN WAR DEBT
HOLIDAY |SL|KEEY
Three-Year Cessation II
Cash Reparations Pay
ments Proposed.
By the Associated Presa.

By the Associated Press.
PARIS, December 6.-Establishmen
in Berlin of an allied control commits
sion to supervise budgetary reforms
and armed with powers to bring
about other financial changes during
three-year cessation in Germany
cash reparations payments Is provided
in a plan under consideration by the
reparations officials of France and
Great Britain.
The conversations now proceeding
are understood to have smoothed
away the principal difficulties be-
tween France and Great BRITAIN III
regard to reparations ana 10 nave
soliditied the opinion that Germany
must be given breathing spell IN
which partially to recover her imam
cial and economic strength.
Germany, it is understood, CANNOT
under present conditions meet her
scheduled payments beyond those due
| in January and February, but IL Is
pointed out that at the end of three
year holiday she will have no excuse
| for refusing to meet her Obligations
The plan meeting with most 1aVor
| in French circles and which may DC
presented formally to the reparations
commission at it's next meeting calls
! for AN increase in payments in ma
| terials In addition it provides i"r
balancing of the German budget re-
tention of German capital WITHIN 'he
country and flotation of loan, part
Of the proceeds of which would go u
| the reparationS commission.
| The suggestion of a three-year NOR
atorium has been abandoned at the
earnest solicitation of france. ne
French representatives explained tnal
the word moratorium was especially
offensive to the French people III con-
! nection with the indemnity, inasmuch
as it was understood as meaning
complete suspension OF payments oI
| all kinds.
The greatest progress has been
| made in the last few days in bringing
the French and British viewpoints to
gether. The result of this progress
| has been the decision to give Ger.
many chance to regain norman
| status.
Could Not Evnde Payments.
| The reparations holiday cannot be
used by Germany as a means of evad-
ing all future payments of indemnity.
, French officials explain that it is be-
' ing considered so that Germany viii
, better be able at the end of two or
, three years to fulfill her reparation
obligations. and she then must be
prepared to pay in full a reasonable
| indemnity"
The whole problem will be formally
placed before the reparations COM
mission when the German reply TO
the last reparation note Is received.
probably at the end of this week. In
| the meantime the officials are work
ir,,p har tn
action. Numerous suggestions are
under consideration. One, which Is
receiving considerable French sup
port, involves written guaranty by
Germany that:
Plan Proposed.
% The budget will be balanced,
co no capital shall be exported to
foreign countries. tS' there shall be no
policy of retaining capital in foreign
countries. () the raising of a loan,
portion of which is to go to the repa-
| ratons commission go continuation
and probable increase during the
period of delay of payments in kind
Such plan would set up an allied
control commission in Berlin to super
wise budgetary reforms and have broad
powers to effect other financial changes.
1t is declared that there are no longer
any insurmountable difficulties between
:he two countries on the reparations
policy. Officials representing France in
Germany who are in a position to know
the real facts. understand that Germany
cannot meet the payments beyond those
scheduled for January and February
next. AS to these, France is not greatly
concerned. for, it is asserted, under the
allied agreement France is not TO re-
ceive one cent of cash involved in these
installments
The Associated Press is informed that
the supreme council probably will con-
slider the new situation created at a
meeting 10 be held within five or six
weeks. when France probably will make
a formal demand for A new distribution
of the first billion Of the indemnity paid
last August. This will be based on the
argument that France consented to its
division between Great Britain and Bel
gium in the belief that Germany would
make further payments. Now that
there Is little likelihood OF payments for
three years after February. France feels
that she should have part of the only
cash payment received from Germany
American observers in Europe are
strong supporters of the plan to grant
the delay; they have advocated such
move for several months as the bes:
means Of insuring payment Of a sub