The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1921-12-16
Angered by the Default,
France Hints She May
Act Herself.
GERMANY'S NOTE Z
is NOT SURPRISE
TeutOns' Move Believed
Plan to Bring Credit
Situation to Head.

PARIS. Decii l5.-Germanys note
to the allies acknowledging her in
ability to pay a great portion of
the 500, 900. O00-mark reparations in
stallment due in January has led
TO an immediate demand from
French. officials for guarantees" II
the allies refuse to concur in fore
ing these from Germany, France
will take them herself"
The fact that Germany would
default on the January payment
had been long discounted and came
as no surprise to the government.
I'VE knew that il didn't happen
in January it would happen in Feb
ruary or later" said an attache of
Premier Brands office. so we face
"a default OF payment which forces
us to ask for supplementary guar
antees, and il the guarantees are
not Forthcoming we shall have to
step in and take them.
Wanted Payment In Kind.
1T was because of the German
situation, and our knowledge OF her
financial condition" he continued,
that we completed the Wiesbaden
agreement We wanted to get pay
ments in kind IL Germany had no
cash. II is also one more reason
why the allies should get together
especially France and England.
BRANDS departure for London sun
day certainly won't he delayed aft
err this,
The government will not move.
however. except in concert with the
allies, according to officials of Che
Quai d'Orsay. p
1t is pointed out In other quar-.
ters that France is not directly in
terested in Germany's defaulting,
since Belgium has priority pay
ments out of the January install
ment But she is intensely inter-
ested in the principle involved and
will refuse to admit Germsny's
claim, since this would establish a
precedent that would be difficult to
overcome in the future.
Called -Pisnned STEP
II Is generally believed that since
Anglo French relations have become
UNNECESSARILY better in the past few
weeks. France is not likely to act
alone. Selling new territory in the
Ruhr, for instance, until after the
allies have taken joint action in the
matter.
In general. French officials believe
that the German move is a we'll
step. thoughtfully planned
for its effect at this particular time,
on the eve of thA Lloyd George-Bri-
and discussion in England and of a
possible general economic conference
In America or elsewhere. They feel
that the German economic situation
would be the main problem attacked
at such a conference and that, re-
alizing this. Germany timed her an
so that it would center
on her financial condition.
] other words. ii Is viewed as part
of a well-ordered campaign to bring
the whole subject of international
credits and exchanges to a head.
Says Germany Can Pay.
The Quai d'Orsay is convinced that
Germany is fully capable OF paying.
not only the January. but the Fehru-
airy instruments, DaslnS lnis Dellet
not only on the observations of it's
own experts, but on editorial opinion
from German newspapers themselves.
They cite. as further evidence, Ger.
many's counter offer to pay one-third
Of the cash due in January and Feb
ruary apart from her deliveries in
kind.
The most charitable view taken here
is that Germany. foreseeing an in
teraIlied attempt to settle the credit
problem, demands a showdown on her
future obligations, and is putting the
question frankly before BRAND and
Lloyd George. ---.. o. 80
Furthermore, encouraged by the
British suggestions for a moratorium,
she desires to test the sincerity of
these proposals and the length to
Oh h. D,lA t.l