New-York tribune., 1921-12-06
Britain and France Agree
ON Breathing Spell in
Indemnity Payments to
Permit TeutonRecovery
Cannot Use Delay
TO Avoid Obligation
Details To Be Worked
Out, Paris Says, Before
Commission Gets Plan

rress).-Germany probably will be
granted three years delay in her
cash indemnity payments, The Associ-
ated Press is informed from the most
reliable source.
Negotiations are now going on he
tween Che reparations officials Of
France and Great Britain, and the re-
sponsible autho critics of both countries $
virtually agree that Germany must be
given a breathing spell. All that re-
mains to be done is to work out a
scheme acceptable to both countries.
The suggestion of three-year mora
torium 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 con-
nection with the indemnity, inasmuch
as it was understood as meaning COM
piete suspension Of payments Of all
kinds.
Agree on Chance for Germans
The greatest progress has oeen made
in the last few days in bringing the
French and British viewpoints to-
gether; the result of this progress has
been the decision to give Germany q
chance to regain normal status.
The rcparations holiday cannot be
used by Germany as a lneans Of evad-
ing all future payments Of indemnity
French officials explain that it is being
considered SO that Germany will better
be able at the end Of two or three
years to fulfill her reparation ob!iga-
tons, and she must then be prepared
to pay in full "a reasonable indemnity. u
The whole problem will be formally
placed before the Reparations Com
mission when the German reply to the
ably at the end of this week. In the
mean time the officials arc working
hard to reach common plan of action
Numerous suggestions are under con-
sideration.s One, which is receiving
considerable French support involves
a written guaranty by Germany that:
The budget will be balanced.
No capital shall be exported to for
cign countries.
There shall be no policy of re-
tanning capital in foreign countries.
The raising of loan, portion of
which is to go to the Reparatons
Commission.
Continuation and probable increase
during the period Of delay Of pay
ments in kind.
Such a plan would set up an Allied
control commi ssion in Berlin to super
wise budgetary reforms and have broad
powers to effect other financial changes
France Guided by Experts
1t is declared that there are no long
er any insurmountablc difficulties be-
tween the two countries on the repara-
tions policy. Officials representing
France in Germany. who are in posi-
tion to know tho real facts, understand
that Germany cannot meet the pay
mcnts beyond those scheduled for Jan
uary 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 involved in these installments.
The Associated Press is further in
formed that the Supreme Council prob
ably will consider the new situation
created at a meeting to be held within
five or six weeks. when France prob
ably will make a formal demand for q
new distribution of the first billion of
the indemnity paid last August. This
will be based on the argument that
France consented 20 it's division be-
tween Great Britain and Belgium in
the belief that Germany would make
further payments. Now that there is
little likelihood of payments for three
years after February. France feels that
she should have part of the only cash
payment received from Germany.
American observers in Europe are
strong supporters of the plan to grant
the delay. They have advocated such a
move for several months as the best
means of insuring payment of sub
stantial indemnity to France. They
contend that delay Of three years will
enable Germany to regain considerable
of her pre-war economic stability, and
there would then be no argument
against her paying reasonable In
demnity.
Reparation observers believe that
French public opinion will accept the
new policy with respect to reparation
Continued on page thrse)