The New York herald., 1921-12-21

Speci0l Cobl. 20 THE NEw Yonll inaALp
Copyright, 1891. bv THE New YORK HnnALp
New York Herald Bureau,
London. Dec. 20.
In addition TO the reparations prob
lem, the Prime Ministers of Great
Britain and France. in their confer
ence nere to-day. discussed conditions
obtaining in Germany and Russia and
means OF improving the European eco
nomic condition. 1t was stated semi
officially that the British Prime Minis
ter put forward a suggestion that a
five Power conference. with Germany.
Russia and Belgium invited TO attend.
should be summoned. the conference
to have a guiding principle similar TO
that of the Washington conference.
The French are not averse To the
scheme. but they want the reparatlons
question adjusted first. and consider
able pressure is being exerted on NJ.
BRAND. the French Premier. to cause
him to maintain n stiff. unyielding at.
titude. The French policy is that
France. In order TO pay her way. must
have her fun measure OF reparations,
while the British policy is that TO pay
her way Great Britain wants TO estab-
lish central and western Europe as
going concerns ana profitable markets,
even II this should involve an abandon
ment OF the main principles OF the in
demnity scheme.
These attitudes conflict In many i'm
portant details, an official told THE New
YoRX HERALD correspondent here. and
the serious problem OF reconciling the
terms has become the aim OF the present
conference.
Experts are reported to be agreed
that any moratorium for Germany must
be accompanied by solid guarantees by
the Germans that Germany's finances
Will be put In order SO that payments
Will be made at the expiration OF the
moratorium.
officials interpret this as meaning an
extension Of the powers OF the committee
on guarantees under the provisions Of
the treaty OF Versailles and that In
fact, the Allies propose a receiver FOR
Germany.
II was said in French circles that
Premier BRAND ia aware that France
can hope for nothing from a dlsinte-
graIed Germany. but II was added that
he would not agree TO anything that
would be calculated 10 disturb the
French budt It, which was based on re-
ceipt OF the full amount OF Frances
indemnity from Germany.
II was said in well Informed circles
yo-tay that very little regarding the
proposals on reparations has oeen ac-
complished during the two days the
Prime Ministers have conferred. After
another meeting to-day between Louis
I,oucheur, French Minister for the LIB
Grated Regions. and British Treasury
experts Il was stated that no decision
had vet been reached on the first prob
lem, which Is whether Germany Is In a
position to fulfill the demands OF the
allies. Not until an opinion on this
point IL given will attention by the
Prime Ministers be turned toward the
question Of whether II Is expedient and
in the interest of their economic posi-
ton to enforce payment under the pres
ent terms.
The French resent the presence here
Of DR.. Walter Rathenau, but the Eng
lish opinion that II Is necessary for
Russia and Germany 20 be represented
has prevailed. and Dr. Rathenau Is
being consulted az German expert not
only by financial experts OF the Allies.
but NJ. Loucheur has had an interview
with him.