The New York herald., 1921-12-01
Will Not Invite Bankruptcy
to Help British Get Back
German Market.
MUST GUARANTEE CREDIT
Closed Trade With Germany
or French Financial Crisis
the Alternatives.
BY LAWRENCE HILLS.

BY LAWRENCE HILLS.
Special Cable to THE New York HERALD.
Copyright, 1884, by THE New YoRK HERALD.
New York Herald bureau.
Paris, Nov 80.
The political barometer measuring
the state Of the relations between
France and England appears to be
falling rapidly The conversations in
London held by DR.. Walter Rathenau,
German industrial leader. with British
Government officials and bankers on
the subject Of a moratorium for Ger
many are viewed in Paris with dis
pleasure and concern. The most
pointed emphasis was given to this
here to-day when in high official quar-
ters the intimation was that Anglo
French relations would become very
strained indeed If England continued
the independent course upon which
she has apparently embarked in these
conversations with Germans
The idea Of moratorium for Ger
many is not fatty rejected in French
circles, but the greatest astonishment
was expressed here to-day that England
should have begun conversations of the
kind which her statesmen have been
holding with DIR. Rathenau without first
informing Paris of her intentions High
officials of the French Government
pointed out to-day that before the con
versations began between Louis Lou
cheur, French Minister OF the Liberated
nd nv p1f fIavR
man Minister of Reconstruction. to ar
range the accord that was finally entered
into at Wiesbaden, the French Govern
ment had taken paina to notify London,
notwithstanding the fact that these con-
versations were intended to perfect the
London agreement, whereas, accord ing
to the French viewpoint. the present
Anglo German conversations appear as
plainly designed to REVISE the whole
system laid down by the London accord.
which has been accepted as the basis for
Frances puoget.
Opposed to Moratorium.
An official here told THE New York
HERALD correspondent In Paris to-day
that France could not possibly accept
the moratorium idea unless her rights
were fully protected. for France does not
intend TO invite bankruptcy for herself
In order to let British business get back
It's German market. a way out might
be found IL England consented to guar
antee credits sufficient to make up for
the payments which France expects of
Germany during the years OF the pro-
posed moratorium. but there Is nothing
to show in London that this is yet con-
templated.
The British-Gerrnan plan for a mora
torium OF two or three years does not
require unanimity In the Reparation
Commission. because the date to which
the payments would be postponed would
not fall beyond 1881. the treaty provid-
ing that only extensions or notifications
over n period exceeding ten years require
unanirnity. A tie up In the Reparation
Commission is foreseen. however. IL
France is not satisfied, because with
Belgium supporting France. "A majority
would not be obtainable and consent to
allow the United States to act as arbi-
traitor would require unanimity.
British Blame French.
The question asked In the French press
Is whether England views the conse-
quences of a French financial crisis as
less serious to her than having the Ger
man market closed to her goods. On this
there is some doubt, n leading French
barker who returned here from London
to-day said he found British financiers
aghast at the consequences the marks
fall had in closing the German market 10
British goods, and that British business
circles apparently we're unanimous in
rcproaching France for standing In the
way Of their commercial interests.
II Il Is useful TO reestablish Germany's
prosperity. says the Temps, lit is still
necessary not to compromise the pros
perity OF France, the principal victim of
the war and Germans PRINCIPAL cred
itor. Not only would such course fail
to ameliorate Europe's economic situa-
ton but Il would render II much worse.
and the parties TO such a policy would.
moreover. commit the greatest iniquity
n they did not arrange 20 furnish France
by some sort of credit operation re-
sources Iuivalent to those represented
in the postponed German payments.
Great Britain is suspected by some
Of the French press OF trying, first, 20
establish an accord with Germany and
then obtain the appreciation OF the
United States for her action. France,
as the Gdttlois points out, then would
face the alternative of bowling to this
coalition or undertaking independent ac-
ton toward Germany. which would mean
her isolation"
Only few French newspapers like the
ction Franchise, It Is significant, favor
paying the latter price.
The Conservative newspapers are
awaiting the return to Paris OF Pre-
mier BRAND TO hear what he proposes.