The New York herald., 1921-08-14
ALLIES TOLIFT Rhine
EMBARGO SEPT. Is
Supreme Council Decides to
Maintain Occupation
of Ruhr Cities.
TERMS ARE ANNOUNCED
Germany Must Remove Boy
cott Oh French Goods and
Meet Payments.
TERMS ARE ANNOUNCED
MAY FLOAT HER BONDS
Scheme Proposed That Inter
national Bankers Unite to
Distribute Them.

Special Cable TO THE New YORK HERALD.
Copyright, 1921. by THE NEW YORK HERALD.
New York Herald Bureau,
Paris. Aug. 13.
The allied Supreme Councils eco
nomic sanctions In the Ruhr Valley
will terminate September IS if the
Germans carry out The payment of the
first 1000, 10000 gold marks due at
the end Of this month and remove tbs
embargo on French goods. But the
military sanctions will not be lifted
until the question has again been dis
cussed at another Supreme Council
session which Premier Ekiand con-
siders should be either at the end of
August or the beginning of September.
That important decision was the last
taken by the Supreme Council before
adjournment at o'clock tonight, fol-
lowing declarations by Louis Louclier,
Minister of the Liberated Regions and
Premier BRAND that Germany's full
filnent Of only tho financial clauses of
the May ultimatum could not be con-
sidered as overcoming failures regard
ing war criminals or disarmament,
which are considered equally impor
tant.
Lord Curzon British Foreign Secreta-
ry, suggested that the problem Of the
gradual withdrawal of troops should
be considered at an early date. as the
vast sums Germany is being called on
to pay for maintaining the armies OF
occupation prevented her from meeting
the reparation payments, and also
urged the Council to fix an eventual
date for the evacuation OF Ruhrort
Dusburg and Dusseldorf
AS the result OF the same argument
by Lord Curzon, it was decided to refer
the question OF reducing the cost Of the
armies of occupation in the Rhineland
to a special commission which would
also investigate the possibility OF limit
ing the expense and duration of service
OF the civil commissions installed un-
der the peace treaty.
Consortium of Bankers.
In new effort to get American. as
well as allied and neutral, money con-
centrated on Europe's rehabilitation the
allied Supreme Council to-day. az a
climax OF a week of otherwise profitless
discussions, ratified the scheme pro-
posed several months ago by the French
that a consortium of international
bankers. including German bank repre-
sentatives. be charged with the distrfbu-
tion Of reparations bonds as delivered
by Germany.
Under a strict Interpretation of the
treaty the bonds should have remained
in the Golfers OF the Reparation Com
mission until Germanys obligations had
been fulfilled. but in view OF the desire
OF the French and Belgians. and even
the Italians, to make their own arrange
ments regarding payments in kind, it
has been decided that the bonds should
be marketed as fast as possible.
Interest attaches on who will CONF
prise the consortium. but THE NEW
York HERALD correspondent has been
informed that II probably win be limited
to the Reichsbank, the Bank Of Eng
land and the Bank of France, with J. p.
Morgan g. Co and Kuhn. Loeb & Co.
each asked to dispose OF as large a
quantity as possible In America.
Inquiry made of reparations officials
this afternoon confirmed tho fact that
so far Germany has only given tempo
rary scraps OF paper for 1000. 900. 900
marks each to cover series A and 3 OF
the bonds, but she has agreed to deliver
the replacing issues in small negotiable
sums as soon as the Reparation Com
mission requests 1t.
The advantage of the new scheme will
be that 1t will not only enable France
to cancel a considerable portion OF heI
52 per cent. share of Germany's indebt-
edness. by carrying out the suggestions
for extensive payments in kind growing
out OF the recent discussions Of Louis
Loucheur. French Minister of the Lib
Grated Regions. and DR.. Walter Rattle.
nau, German Minister of reconstruction
but It will enable France TO get the bal.
ance required for the restoration OF the
invaded departments by direct appeal tc
the French people and through the con
sortium to the nationals of other coun'
tries.
Germany. II Is pointed out. VIII bene'
/ TT by the new scheme. as cancellation
4 of the bonds before maturity win no
| only reduce the interest payments bu
will also develop friendlier relations q,
definite proof of her good faith.