The New York herald., 1922-07-18
FRANCE And BRITAIN
MAY CUT INDEMNITY
MORE Than A HALF
Reduction of 132,000,0 ,000,-
600 Marks to 5O,OOO,OOO,-
600 Is Favored.
ANNUL PARIS DEBT
England Might Also Give
Its Share of Reparations
to Paris.
PROJECT GAINS FAVOR
Officials and Debt Board Mem
bers Hold Informal Dis.
cussions.
PROJECT GAINS FAVOR

PARIS. July II (Associated Press).-
The reduction Of the German indem-
nifty to $4,000, 900. 900 gold marks from
the present total Of 10000, 100000 and
the cancellation of the French debt to
England is the basis Of a solution Of
the reparations question now being
seriously discussed by French and
British officials.
Although the scheme has not yet
officially reached the Reparations Com
mission. members Of the latter have
discussed the details. 1t is expected
the proposed plan will be one of the
chief subjects of discussion in the
forthcoming meeting Of Premiers
Poincare and Lloyd George.
Britain Backs Scheme.
The suggested solution has the sup
port of British officials. who have been
urging it's acceptance upon the French
officials. 1t Is announced. The latter, So
the Associated Press has been reliably
Informed, is looking with more and more
favor upon the plan. provided 1t car.
ries with it clean cut pledge of as
sistance In time OF attack and assures
France the allotment. wholly or in part.
of England's 22 per cent. share Of the
total indemnity. It Is believed that Eng
land is ready to concede virtually all
these demands II full acceptance on the
part of the French Government Is OBJ
tanned.
The British decided to push the plan
when 1t was definitely determined that
the United States was not in 4 mood to
discuss cancellation OF the Allied debt.
1t was learned to-day. Supporters Of the
scheme hope America will follow the
lead after she has had the chance to
observe the good which may result from
even a partial writing or of the war
debts
British officials have informed the
French that their plan would bring
about a radical change in the present
European situation. 1t is thought that
the mark would be stabilized. business
confidence restored and Germany. with
collectable Indemnity. would be oouLd
to find means of paying.
The proposal has strong advocates In
the Reparation Commission. It is an
nounced In these circles to-day. 1t is
expected in that quarter that it would
have the unoficial support OF the
American Government. Advocates fur
thei point out that its adoption would
Immediately have the effect OF calling to-
getber the committee of international
bankers. who would probably arrange
a loan, in itself. large enough to In
sure reparation payments for several
years under the revised figures.
Provide Years Moratorium.
The plan would call for moratorium
for the remainder of this years cash pay
ments. the Associated Press learns, ex-
nc rts taking the view that Germany
would probably be able to balance her
budget by January, provided she is re-
licyed of payments until that time. The
acceptance Of the proposed adjustment
by France, advocates explain. would
have the effect of placing all the Allies.
including Great Britain and the United
states, frmly behind France. I'm the col
lection of the reparations account
1t is admitted that the proposals. II
tentatively approved at the forthcoming
Franco-British meeting. could hardly be
adopted by the two countries Tor sew
era, months. 1t Is explained, however,
that discussion Of the plan has gone far
enough to make IL outstanding and the
most acceptable solution of the German
reparations problem.
The Reparation Commission was
notified oficialIy to-day that Germany
had deposited 32.000.000 gold marks In
designated banks 70 meet her July Is
r<porafious payment