The New York herald., 1921-01-27
FRENCH REPORT
ON PREPARATIONS
REVEALS DANGER
Shows Paris and London
Cabinets Far Apart and
Solution Defied.
STRESS BUDGET CRISIS
is France Victor or Loser
in the War; Doumer
Asks Lloyd George.
BALTIC STATES FAVORED
Premiers Decide to Recognize
Latvia and Esthonia as
Sovereign States.
BALTIC STATES FAVORED
Nv LAURENCE HILLS.

Special Gable TO THE New YORK HERALD.
Copyright, 1881, By THE New YORK HrRALp.
New York Herald Bureau,
Paris, Jan. 90.
An expose Of Frances financial con-
dition by Paul Doumer. Minister Of
Finance, which was punctuated by
questions by Premier Lloyd George
of Great Britain, was the feature of
the meeting OF the allied Premiers to-
day, NJ. Doumer's report obviously
making a marked impression on the
British Premier. If anything, how
ever, the report only emphasized again
how far apart are the French and
British on this greatest economic
problem of the age, which seems to
be defying solution here just as 1t de-
fed solution In all previous meetings
of the Premiers.
Carefully analyzing the French
budget and stressing the position
not receive from Germany the sums
she has already advanced for the repa-
rations account and other sums she
must advance in the future to repair
the German damage done in France, NJ.
Doumer put the question bluntly 10
Lloyd George:
Us France to be considered one OF
the victors in the war or loser?"
will answer this question afflrmattvely
an Of osfn ri
daily to become more impossible.
Nj. Doumers report is to be circu-
lated among the delegates to the con-
ference here and will be discussed
further before the Premiers attempt to
reach a decision in the matter.
With politics always entering as a
factor in the situation the problem
here seems a nut that is hard to crack,
and the three days session has already
produced a profound encouragement.
Admitting the present and future budget
problems OF France, American and Brit
ish bankers are saying to the French:
Your loss in the exchange situa-
ton. IL present conditions continue. Will
be greater than anything you might
gain by further postponcment OF the
date for fixing the full amount OF the
reparations Germany must pay"
But this argument has not yet sue
ceeded.
PARIS, Jan. 2S.-The two meetings OF
the council were devoted to hearing the
statement of the French Minister Of
Finance, NJ. Doumer. on reparations and
in considering the status Of former Rus
sian States.
II was decided this afternoon that
L.atvia and Esthonia shall be recog-
nized as sovereign States. Action re-
garding Lithuania and Georgia was de-
ferred pending further information
Premier Lloyd George and President
Niilerand had occasion at luncheon TO
discuss at some length the report on
repara tons made py Mr.. Doumer. I'm
mediately after adjournment of the af-
ternoon session Mr.. Lloyd George and
NJ. Jaspar and Col Theunys. respective
ly Foreign Minister and Finance Min
lister of Belgium, went into conference
in Mr.. Lloyd Georges apartment. pre-
sumably regarding the same subject.
Reparations will again come before
the council tomorrow. along with the
military experts report on disarma-
ment. The French attitude, as outlined
In NJ. Doumer's exposition on the sub
ject before the council. Is that the AL
lies should stand on the treaty OF Ver-
sailles so far as reparations are con-
cerned.
The position adopted by M. Doumer in
his report. 1T developed as he proceeded
to its conclusion. was "A return to the
terms of Article 233 of the Treaty OF
Versailles. which places the duty OF de-
termining the amount OF compensation
TO be paid by Germany with the Repara-