Evening star. [volume] (Washington, D.C.) 1854-1972, 1921-01-02
PREPARATIONS ISSUE
NEARER SOLUTION
France and Germany Assume
Much More Conciliatory
Attitudes.
GERMANS HAVE ENOUGH
RESOURCES FOR PAYMENT
Developments of Exports and Bud
get Changes Will Aid leu
ton Settlements.
BY PAUL SCOTT MOWRER.

BY PAUL SCOTT MOWRER.
By Cable to The Star and Chicago Daily News.
Copyright. 1920.
PARIS. January High French
officials, following tho return Of the
French delegates from the Brussels
conference have given the writer
the following inside account of the
present status Of the reparations
question::
The conference will meet again on
January 10. Meanwhile semi-oficial
conversations will continue in Paris
between the German representatives
and various allied experts. each OF
whom has been delegated to study
some particular problem raised at
Brussels. This seems to be a prac-
tical mode Of procedure which. it is
expected. will give concrete results.
Indeed, for the first time a solution Of
the reparation problem no longer ap-
pears to be an impossibility. At first
the attitude of the Germans was
purely negative. Their first expo.
sitions-those of Herr Schroeder and
Herr Havenstein-were merely lamen.
tations on Germany's deplorable
financial situation.
Thus the Germans conformgd to the
tactics they had been following for
months. Hitherto France had indi-
rectly facilitated their task by adopt
ing an equally negative attitude. The
French watchword was dangerously
simple-"execute the treaty"
French Adopt New Tactics.
At Brussels France adopted a more
practical line Of conduct. On the one
hand she treasured the allies, letting
1t be clearly understood that she
would not carry her demands beyond
the Boulogne program, which Britain,
Belgium and Italy have sanctioned.
On the other hand, the French dele
gates frankly declared their inten-
ton to seek a practical solution of
the reparations problem. Particularly
with respect to reparations in kind
France indicated that she was dis
posed to accept not only rawstuffs
such as coal. potash and wood. but
manufactured goods within the limits
Of the demands Of the French mar
kets. A favorable atmosphere being
thus created, there followed a series
of practical studies from which the
following conclusions may be drawn:
1. Regarding German finances, M.
Delacroix. the Belgian delegate, who
studied the German budget with the
aid of French specialists. estimates
that the limit OF German resources
is far from having been reached. The
French debt is proportionately larger
than the German. The direct and
indirect taxes can be greatly in
creased IL the German government
applies the taxes strictly. and es-
icy regarding railway rates it will
not only be able to balance the
budget, but begin making payments
to the allies.
Nations Closer in Views.
2 Regarding reparations in kind.
the French and German points of
view have drawn much nearer to-
gether. The establishment Is fore
seen of an annuity composed first OF
rawstuffs and then of manufactured
goods. The first difficulty will be to
fix prices.
3. The allies have declared that
payments in money are also>meees-
sary. These payments will be reh-
dered possible by the development OF
Grman exports and the reorganiza-
CATION seems disposed to hold to the
BouloEne resolution which is of great
advantage to France. The Germans
have not seemed to refuse the princi-
pie of monev payments.
4. Regarding secondary questions.
such as sequestrations, operation of
compensation bureaus and recupera-
ton of part of the German marine
which the German delegates tried to
link with the reparations problem,
the allies have faced some practical
attefuations and disadvantages point
ed out by the Germans, without. how
ever, Abandoning the general outlines
of the treaty of Versailles.
Figures in background Active.
This is only the beginning. For
example, it is by no means certain
that. the German government will. on
reflection. approve the rather con-
ciliating attitude Of the chief dele
gate, Herr Bergnann. Throughout
the conference the impression pre-
vailed that in the background arose
the redoubtable figure Of Herr SHINES,
who kept the minister of foreign
affairs, Walter Simons. from attend
ing the meeting Master of the
principal newspapers and OFFS great
political party, and having free ac-
cess to the foreign ONCE, SHINES is
an advocate of the intransigeant pol
icy. To what extent he will be sue
cessful the next few weeks will show.
Until then one can Only exDreS9 a