The New York herald., 1921-06-15
DIRECT PREPARATION
DEALINGS FORECAST
French Bankers Expect That
Each Victor Nation Will
Dicker With Berlin.
GERMANY FAVORS POLICY
Loucheur's Conference With
Rathenau Is First of
Series.
FAVORS POLICY

Special Cable to THE NEW York HERALD.
Copyright, 1891. oy THE NEW YoRK HERALD
New York Herald Bureau.
Paris, June IA.
In important banking circles here It
is believed that the conversations be-
tween Louis Loucheur. French Min
lister OF the Liberated Regions, and DR..
Walter Rathenau. German Minister Of
Reconstruction, in Wiesbaden were
only the beginning of a series of in
terviews between German Ministers
and representatives of France Eng
land, Italy and Belgium whereby the
authority Of the Preparations Commits
SION will be overruled eventually and
direct settlements made between Ger
many and each of the victor nations.
II Il known here that the German
interests. represented by DIR. Rathenat
and Karl Bergman. German Under
Secretary of Finances. who headed the
German delegation to the Brussels
conference, always indicated that
| policy of conciliation would neces-
sarily entail such a settlement, and
the selection of the French problem as
the first to attempt to solve seems to
strengthen this idea and to indicate
that this is the scheme back Of DR..
Raxhenau's policy.
while II Is admitted that the allied
Coyernments are not likely to wafvs
their right to collect from Germany
reparations TO the amount OF 132,ooo.-
oo0. 900 marks gold. TO be divided among
them on the percentage basis arrived at
in Spa last year, French fnanciers pro-
fess not to see sny reason why Ger
many. Just like any business debtor,
! shouti not arrange with her own cred
| itors Just how much she must pay In
cash and how much in materials and
| labor.
| The return OF NJ. I>oucheur to Paris
to-day did not bring any striking de-
velopment He attended Cabinet meet
ing. where he reported fully on his
conversations with the German Minister
OF Reconstruction. His report. however
was not made public. There was forth
coming only a brief statement that the
report related to reparations. the Minis
| try insisting that the conversations ir
| wIesbaden were merely intended as 2
g,iide for future meetings in Paris. be-
| ginning on June "a. which are designed
at least In part. to correct any false I'M
| preesions DR.. Rathenau may have re
eardins the power OF the French Gov
| ernment to make further concessions &c
| Germany In these meetings France vii
be represented by ". Loucheur, assisted
by Jacques Sevdoux. economic adviser
\ 70 the Foreign ONCE. and Germany by
Herr RerEmann and Theo1or Wolff.
The chief purpose of these conferences
will be TO work to the end that an agree
ment may be reached regarding deliv-
cries Of raw materials by Germany. the
same to be credited TO the reparations
account. The meetings will last about
three weeks.
officially, THE NEW YORK HERALD cor
respondent here learned that the
wiesbaden conversations between NJ.
I,oucheur and Or. Ratheneu envisaged
France finally accepting not more than
one-flfth Of her 50 per cent OF the
reparations total IN material and labor
| The question OF whether this VIII In
clude transport charges and the accom-
mediation Of German labor IL to be de-
cided at the conferences here.
| As result Of the wiesbaden meet
| ing. however. a note of optimism reigns
IN official circles here n 10 generally
appreciated in Psris that some sort oi
definite coordination must De sfrected
and tho quicker conciliaticn IN possible
the more rapid will be Frances
economic and social reconstruction