The New York herald., 1922-08-27
POINCARE REJECTS
'BERLIN GUARANTEES,
SEIZURES FORECAST
SHINES and Other Indus
trial Leaders Offer Mine
and Forest Products.
BOARD HEARS PLANS
British Avert Vote of Rep
arations Committee and
Seek Delay.
PUNITIVE STEPS DUE
Bradbury Urges Proposals Be
Accepted and Moratorium
Be Granted.
PUNITIVE STEPS DUE

PARIS. Aug. 26 (Associated Press) -
Premier Poncare has rejected the
eleventh hour guarantees offer by the
German Government. and independent
measures by France against Germany
seemed assured tonight after failure
OF the reparations mission to obtain
in Berlin the basis OF a compromise
acceptable to France.
In we'll informed French circles it Is
considered reasonably certain that the
Reparations Commission win grant a
moratorium for the rest of the year.
with the final German proposals as
an additional guaranty.
The German proposals. handed to
the Preparations Mission Just before It
departed for Paris, provided for a con-
tract between the German Government
and the biggest German industrialists,
including Hugo SHINES. for delivery
during the period OF moratorium of
products of the Ruhr mines and wood
from the State forests. German in-
dustry would guaranty faithful deliv
cry, and penalties would be enforced
against the industrialists in the event
the schedule was not lived up to.
Details Promised Next Week.
Details OF the scheme were to be
the Frsnch Premier rejected the plan
this afternoon after a conference with
NM. Dubois and Mauclere. The Pre-
mier's opposition Is said to be due to
the fact that he believes the scheme
made the industrialists more important
that the Government. and since the
business party in &C, many is in a posi-
tion to dictate TO tie Government. re-
fusal TO carry out the contract would
leave the German Government power
badly off as before,
British optimism. which continued
even up 70 this afternoon, had given
way tonight to frank gloom over the
situation after VI. PoIncare refused TO
accept the latest German proposals.
The British think these proposals
the German mines and forests by ac-
tualy giving France the products of
these natural resources without handing
the district over to political control The
district in possession OF France. II Is
contendod by the British, would only
add chaos TO the already critical situa-
tion.
Sir John Bradbury just before the
meeting of the Repsrations Commission
I a
vinced that Germany was really trying
to meet the French view, and he urged
that the French Government meet Ger
many half way. Sir John authorized the
publication of the following statement:
II am satisfied that the German Gov
ernment is making a serious effort to
meet the views OF the French Govern
ment In so far as the actual situation
In Germany will permit. ! am strongly
OF the opinion that the French Govern
ment ought to do It's best TO meet the
German Government half way"
German situation Desperate.
lie further Informed the commission
that the German financial situation
was desperate and that social order IN
its entirety in Germany was Threatened
Other members Of the mission. includ-
ing VI. Mauclere. reported. that they
were equally impressed Win the seri-
BUSINESS of the German crisis.
The French. however. reported that
they were amazed to see great evil
dences OF prosperity in GERMANY and
declared that a large number of Ger
mans. who apparently had discarded
their own currency. were using dollars
instead.
The Preparations Commission held a
two hours session 10 hear these re-
N...t a
cision will be taken for several days.
Sir John Bradbury commended to
the commission that moratorium In cash
payments should be granted until Ger-
many stabilized the mark and balanced
her budget but the French solldly OPP
rosed this recommendation. The British
view Is that at best a moratorium can
ouiv act AS bridge Until the whole
question Is again discussed at the pro-
iected November conference on inter-
allied dvbts and indemnities. Such a
meeting is imperative in the view OF
sir John and the other British repara-
tion officials.
seek 10 Avoid Direct Vote.
Despite the gloom in British quarters
tonight the British representatives are
making every effort 70 avoid direct
vote .bv the commission. because they
feel that occupation Of the Ruhr or any
other reprcssive measures against Ger
many al this time would only hasten the
impending collapse Of Germany and
produce no cash for France.
on tho other hand the French Gov
ernment Is convinced that Germany can
lind 150.o00.0o0 gold marks for the
August. September and October pay
menta Ry that time officials believe
another Allied conference viii have TO
DISCUSS a new general reparations agree
ment.
III tho commission grants moratorium
with the guarantees just offered. FRANCE
will reject che decision and assume her
liberty Of action, II Is authoritatively de-
clsred tonight ~ the commission re-
fuses a moratorium France win also
act. but in different manner. The
commission will meet again Tomorrow
/