The New York herald., 1921-12-18
Will REFUSE
TOCUT PREPARATIONS
Ready to Abandon Schedule Of
German Payments for an
Equivalent.
MAY REDUCE RHINE ARMY
Would Expect in Return Brit
ish Guaranty to Provide for
French Security.

PARIS, Dec. II ASSOCIATED Press).-
The French Foreign Office has issued
the following announcement OF the
principles governing the conversations
between the British Prime Minister.
Mr.. Lloyd George. and the French
Premier, NJ. BRAND:
First-F'rance is willing to abandon
the London schedule of payments pro-
vided Germany pays an equivalent
amount on a different form of schedule.
France prefers to abandon the London
schedule rather than remodel it.
Second-The French Government
will consider reduction of the allied
forces in the occupation of the Rhine
land and apply the money saved there
by to reparations, provided Great Brit
ain offers an absolute guaranty in the
event of future German aggression.
Third-France will assist in the i'm
provement of the general economic
situation, in common agreement, recog-
nizing that Great Britain is as gravely
concerned over trade prospects as
France IS on reparations, and will dis
cuss lower tariffs and other similar
problems.
Fourth-F'rance is ready to undertake
any practical measures Jointly with
Great Britain towards the economic and
Industrial restoration of Germany. She
recognizes as necessary British trade
and French reparations.
Fifth-While unwilling to accept
reduction in the reparations claims
France IS prepared to grant Germany
every possible facility TO make deliv-
cries.
Premier BRAND intends to leave
Paris for England tomorrow noon in
response to the recent invitation from
Prime Minister Lloyd George of Great
Britain to discuss German reparations
and other matters.
GcrmaDy's Request Refused.
The Preparations Commission has re-
fused TO consider Germany's request for
an extension of time on her January and
February reparation payments until the
German Government tells just what she
can pay on these installments and gives
other information demanded. This de.
veloped when the text of the commits
sion's note to the Berlin Government was
made public here to-day.
The reply expresses surprise that Ger
many failed 10 tell exactly what foreign
exchange she would be able to deliver,
what delays she desired and what guar
antees she would offer meanwhile. Until
these details are furnished ii will be I'M
possible to consider or even examine the
request of the German Government, the
note declared.
The commission expresses regret that
Germany had not replied TO its previous
queries regarding what action she pur-
posed taking In connection with the COM
missions suggestion for balancing the
budget. preventing the expectation OF
German capital and measures to OBJ
tain foreign exchange from German
holders. The German Government was
taken to task in the note for this situa-
ton.
The Note to berlin.
The text Of the note reads:
THE Preparations Commission has
received a letter from the Chan
cellor dated December -. announc-
ing that the German Government
was unable to pay In their entirety
the instaiments due. under the
schedule of payments, on January
10 and February IT, next, and re-
questing the Reparations Commits
sion to extend the time limit for tho
payment of these instalments.
The commission can but express
its surprise that the Chancellor's
letter contains no definite statement
as to the currencies which tho Ger
man Government will be able 10 pay
on each Of the above dates; as to
the length OF the extension requested
for the payment of the balance or
as to the security to be offered
meantime.
Unless and until the commission
receives definite information on these
points. Il will be impossible TO Eivo