The Washington herald., 1922-07-28
Cabinet Votes to Accept
Forty Billion Gold
Marks.
POINCARE TO GIVE
DECISION TO ALLIES
Reduction Granted in
Hope of Making Interna-
tional Loans Possible.

PARIS. July 27-Final and
unanimous decision on the French
policy on German reparations was
reached today at a council of all
the cabinet ministers at Ram
bouillet." President Millerands
country residence. after both morn
ing and afternoon sessions.
The main points of the decision
are as follows:
France admits that for a reason
able period Germany is incapable
of meeting the reparations pay
ments expected by the allies.
A total sum of 10000. 100000 gold
marks is judged reasonable and
within the capacity of Germany to
pay for devastation of allied coun-
tries.
Satisfied with Amount.
France will be satisfied with that
amount provided that the reduction
serves to make international loans
possible and II her priority claims
growing out of the heavy advances
already made to victims of the
devastation. pending reimbursement
from Germany. are recognized by
the other allies.
In line with the foregoing plan,
France stands ready to grant a
new moratorium to Germany even
on the payment of $4,000. 900 gold
marks due on August Is. II Ger
many is not willing to submit new
security and guarantees in the
shape of temporary allied control
of all German customs and all
state properties as first mort
gage, then France has other plans.
VIII Propose Program.
At the conference next week in
London Premier Poincare will pro-
pose the new French program and
offer Frances collaboration along
its lines. If the question of allied
debts can be discussed at London,
France will propose the applica-
tion to such debts not only of the
C." bonds totaling S2.OoO.OO0,OOO of
gold marks. but also the 10000
OOO, 900 of "B" bonds, which would
leave 10000. .O0O.O 900 as Germany's
remaining obligation to be wholly
allocated to repair the wars dew
astated areas
II the allies, especially Eng
land and Belgium. agree to France
plan. she feels there Will be no
necessity for the occupation of fur
ther Germany territory as guar
antee of payment But if there
can be no agreement with the al
lies on this basis, France stands
ready to go on her way alone and
occupy territory.
Must BE Explained soon.
At today's cabinet meeting. which
lasted five hours. and at which each
minister was given full opportunity
to express his views. it was de-
cided that the new French policy
must be explained to other allies
as soon as possible, and to this
end a general London conference of
the allies will be urged on Premier
Lloyd George during the first few
days of August.
1t is demanded that the whole
reparations problem must be settled
in principle before August 15. when
the next German payment falls due.
Obligations Reduced.
Once adopted. the French plan
means that Germany's obligation to
pay $4,000 .OOO. 900 gold marks will
be reduced to an obligation to pay
40. 200. .0OO, 900 for the devastated
areas as a political debt, the re-
mainder to be settled with the
creditors of France-first England,
aad eventually the United States,
IL Washington is willing to accept
German bonds as payment of the
French debt.
France would receive perhaps no
more than she has spent already
repaying her own devastated re-
gions. but the policy of the cabinet
Ieans toward a sacrifice of long
time German obligations in favor
of quicker payments, which are
now desperately needed.
Copyright. 1s22.)