Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-12-06
THREE YEARS. DELAY
GRANTED GERMANY
ON MONEY PAYMENTS

Paris, Dec. Shy A. P.)-Ger-
many will probably be granted a
three years delay in her cash in
demnity payments, the Associated
Press is informed from the most re-
liable source. Negotiations are now
going on between the Preparations Of
ficials Of France and Great Britain
and the responsible officials of both
countries virtually agree that Ger
many must be given breathing
spell. All that remains to be done
is to work out scheme accepta BILE
to both countries.
The suggestion Of a three-year
moratorium has been abandoned at
the earnest solicitation of France.
The French representatives explained
that the word moratorium was
especially offensive to the French
people in connection with the in
demnity, inasmuch as it was under
stood as meaning complete suspen-
sion of payments of ell kinds.
The greatest progress has been
made in the last few days INFRINGING
the French and British viewpoints
together; the result of this progress
has been the decision to give Ger
many a chance to regain a normal
status.
The reparations holiday cannot be
used by Germany as means of evad-
ing all future payments of in
demnity, French officials explain
that it is being considered so that
Germany will be better able at the
end of two or three years to fulfill
her PREPARATION obligations. and she
must then be prepared to pay in full
"a reasonable indemnity"
The whole problem will be formal
~ placed before the reparations
commission when the German reply
to the last PREPARATION note is receiv-
ed, probably at the end of this week.
In the meantime the officials are
working hard to reach a common
plan of action. Numerous sugges-
tons are under consideration. One.
which is Ueceiving considerable
French support, involved written
guarantee by Germany that:
% The budget will be balanced:
(2) No capital shall be exported to
foreign countries: go There shall be
no policy of retaining capital in for
eign countries; ca The raising of A
loan, portion of which is to so to
the reparations commission: 60
CONTINUATION and probable increase
during the period of delay of pay
ments in kind.
Such a Plan would set up an allied
control commission in Berlin to SUI
pervise budgetary reforms and have
broad powers to effect other financial
changes
1t is declared that there are no
longer any insurmountable difficult
ties between the two countries on
the separations policy. officials rep
resenting France in Germany, who
are in position to know the real
facts. understand that Germany cam
not meet the payments beyond those
scheduled for January and February,
next. AS to these, France is not
greatly concerned, for, it is asserted.
under the Allied agreement France
is not to receive one cent of cash in
volved in these installments.
The Associated Press is further In
| formed that the supreme council
probably will consider the new situa :
ton created at aemeeting to be held
within five of six weeks. when Franc,
! probably will make formal demand
! for rev distribution of the first
| billion of the indemnity paid last Al
gust. This will be based on the ar
gument that France consented to its
| division between Great Britain and
! Belgium in the belief that Germany
would make further payments. Now
that there is little likelihood of pay
ments for three years after February
France feels that she should have
part of the only cash payment re
ceived from Germany.
American observers in Europe arr
strong supporters of the plan to gram
| the delay; they have advocated such 6
move for several months as the hes
means of insuring payment of sub
stantial indemnity to France. They
CDHlGUu lHdL d utidN VI year
will enable Germany to regain consid
| cradle Of her pre-war economic stabil
I ity; and there would then be nc argu
ment against her paying a reasonable
! indemnity.
PREPARATION observers believe tha
French public opinion will accept tn,
new policy with respect to reparation
! md nrnfpcc n in ~
| depriving Germany of all argument,
against the payment Of the indemnity.