The New York herald., 1921-12-06
GERMANY MAY HAVE
THREE YEARS'DELAY
French and British Reparation
Officials Agree to Give
Breathing Spell.
ALLIES WILL SUPERVISE
Will Have Control Commission
in Berlin to Regulate
Budget Reforms.
ALLIES WILL SUPERVISE

PARIS, Dec. (Associated Press).--
Germany will probably be granted
three years delay In her cash indem-
nifty payments. the Associated Press
is informed from the most reliable
source. Negotiations are now going
on between the reparations officials
Of France and Great Britain, and the
responsible officials of both countries
virtually agree that Germany must
be given a breathing spell. All that
remains to be done is to work out
scheme acceptable to both countries.
The suggestion Of a three year NOR
atorium has been abandoned at the
earnest solicitation of France. The
French representatives explained
that the word moratorium was espe-
cially offensive to the French people
in connection with the indemnity, in
asmuch as 1t was understood as
meaning complete suspension of pay
ments of all kinds.
Great Progress Made.
The greatest progress has been made
in the last few days In bringing the
French and British viewpoints together
The result OF this progress has been the
decision 70 give Germany a chance to
regain a normal status.
The reparat.ons holiday cannot be
used by Germany as a means of evading
all future payments OF indemnity French
officials explain that II is being con-
sidered so that Germany will better be
able at the end of two or three years
10 fulfil her reparation obligations, and
she must then be prepared to pay In full
"a reasonable indemnity"
The whole problem will be formally
placed before the Preparations Comrnis-
sion when the German reply to the last
rcparation note is received. probably at
the end of this week. In the meantime
the officials are working hard to reach a
Cannon plan of action. Numerous sug-
gestions are under consideration. One,
which is receiving considerable French
support, involves a written guarantee
by Germany that:
Cd The budget will be balanced (2)
no capital shall be exported to foreign
countries; (3) there shall be no policy
OF retaining capital in foreign countries
CD the raising of loan. a portion OF
which is to go to the Reparation Com
sion; (5j continuation and probable In
crease during the period OF delay of
payments In kind.
To Control I'm Berlin.
Such plan would set UP an allied
-
wise budgetary reforms and have broad
powers to effect other financial changes
II is declared that there are no longer
any insurmountable difficulties between
the 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. II is asserted under the
allied agreement France is not to re-
ceive one cent of cash involved In these
instalments.
The Associated Press is further In
formed that the supreme council prob
ably Will consider the new situation Gre
ated at meeting to be held within five
or six weeks. when France probably will
make formal demand for new dis
tribution OF the first billion OF the in
demnity paid last August. This will be
based on the argument that France con-
sented to It's division between Great
Britain and Belgium in the belief that
Germany would make further payments.
Now that there Is little likelihood OF pay
ments for three years after Fe bruary
France feels that she should have part
OF the only cash payment received from
Germany. American observers in Eu-
rope are strong supporters OF the plan to
grant the delay. They have advocated
such move for several months as the
best means of insuring payment OF a
indemnity TO France. They
that a delay of three years will
enable Germany to regain considerable
OF her pre-war economic stability and
there would then be no argument against
her paying reasonable indemnity.
Reparation observers believe that
French public opinion will accept the
new policy with respect 10 reparation
and profess 10 see in II means OF de-
privlng Germany OF all arguments
against the payment OF the indemnity.