The New York herald., 1921-02-20


Copyright. 1921 by THE NEW YORK HERALD.
New York Herald Bureau.
London, Feb 10.
II now seems certain that the big mo-
ment OF the allied conference in London
will come when Warren G.. Harding de-
livers his inaugural address in Wash
ngton. Meanwhile the background here
is fun of trouble for the conference
which hopes to settle most of the worlds
troubles here in the next two weeks.
With the recalcitrant attitude of the
Germans becoming more certain every
day, there is the agreement reached by
the Allies that the Paris terms must be
substantially enforced. But there is no
agreement as to methods.
Regarding the Near East problem
France, Italy and England are going
into the conference apparently as widely
divided as the actual contending par
ties. Greece and Turkey. England has
become reconciled to King Constantine
as ruler Of Greece, but Italy is not rec
onciled toward him for reasons of state
that will develop later. Furthermore,
the attitude OF America tends to compli-
cate the whole situation still further.
Allied dipIomatists admit that Mr.
Harding's inaugural address may fall as
real bombshell into the discussions re-
garding how to dispose of Germany's
and Europe's war debt. Although in
allied quarters the discussion Of Amer
ica's relations with the war debt is kept
on strictly informal basis, the corre-
spondent for THE NEW YORK HERALD
was informed tonight that II is likely
one of the notifications to be proposed
by DIR. Walter Simons, German Foreign
Minister. will be an out and out scheme
for making the allied payments to
America dependent upon the German
payments to the Allies.
Financial Plan Favored.
II is further stated that the scheme.
which involves the pledging of about
50. 900. .000.00 German gold marks
through forty-two years as against the
$40. 900, 100000 which the Allies owe
America. meets with considerable favor
in certain allied as well as German
quarters. The Germans believe that il
such scheme is successful the weight
of the influence OF the United States
will be thrown in favor Of reducing the
ultimate German amount TO a figure
Germany admits she can pay or one the
United States Is more likely to elievc
she can pay.
There is already an extensive propa-
ganda TO this effect which can be traced
clearly to Berlin. Certain Miles. on the
other hand. welcome this solution as one
that will relieve the transatlantic bur-
den which is embarrassing IL not crush
ing.
The scheme is further worked out on
the theory that Il will be possible for
Germany to do more business with
America than Europe in the years to
come. Upon the hopes OF this budding
trade she also builds the hopes Of be-
Ing able to get the obligations discounted
there I'm case IL ever became convenient
TO postpone actual payment In cash.
The development OF all this, however.
depends upon the trend of Mr.. Harding's s
inaugural address and the indications
Of how the new Congress will act to-
ward making peace with Germany.
More immediate difficulties are seen
in the contracts between the speeches
yesterday OF Premier BRAND and Dr.
Simons.
As far as England Is concerned the
coalition victory at the Cardigan bye
election to-day indicates that the coun-
try approves OF Mr.. Lloyd Georges ac-
ceptance or the 226.Ooo. 900 600 gold marks
rcparations decision as "the utmost
farthing that Germany can pay" as he
said yesterday In the House OF Com
mons. Tho issue OF the. failure OF the
Government TO search German pock-
cts was sharply played IN the course
Of the Cardigan canvass. and Mr..
Lloyd Georges speakers soaked Wales
With the same sort Of speeches as the
one he made YESTERDAY