New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-07-18
England's Plan Would
Open Way for Loan
and Cancel nch
Obligations to Her
Balanced Budget
For Germany Seen
Paris Expected to Exact
Pledge Of Military Sup
port From Great Britain

PARIS. July II (By The Associated
rress).-The reduction of the German
Indemnity to 5o,ooo,0ooooo gold marks
from the present total of $4,000, ,o0o,-
e5o and the cancellation of the French
debt to England is the basis of solu-
ton of the reparations question now
being seriously discussed by French
aad British officials.
Although the scheme has not vet of
fciaily reached the Reparation Com
mission, members of the latter have
discussed the details. 1t is expected
she proposed plan will be one of the
chief subjects of discussion in the
forthcoming meeting of Premiers
Poincare and Lloyd George.
The suggested solution has the
hearty support of British officials, who
lave been urging its acceptance upon
the French officials, it is announced.
fhe latter so The Associated Press
las been reliably informed, is lookin,'
With more and more favor upon the
plan, provided it carries with it a
slesn cut pledge of assistance in time
iotment, wholly or in part, of Eng
lands % per cent share of the total
Indemnity. 1t is believed that Eng
land is ready to concede virtually all
these demands, if full acceptance ON
the part of the French government is
obtained.
Hopes America Will Follow
The British decided to push the plan
.,rta 4 E,; i
the United States was not in mood
to discuss cancellation of the Allied
debt, it was learned to-day. Support
ers Of the scheme hope America will
follow the lead after she has had the
chance to observe the good which NAV
result from even a partial writing off
Of the war debts.
British officials have informed the
French that their plan would bring
ebout a radical change in the present
European situation. 1t is thought that
the mark would be stabilized, business
conhdence restored and Germany, with
q calleetible indemnity, would be bound
to fEa means Of paying.
Ihl proposal has strong advocates
\ In tM Reparation Commission. 1t is
exposed III that quarter that it would
hayf. the unofficial support of the
AmAcan government. Advocates fur
thfpoint out that its adoption would
imfediately have the effect of calling
iQfther the committee of interna-
tfal bankers, who would probably ar
Age loan, in itself large enough
n insure reparation payments for sew
gal years under the revised figures.
The plan would call for a mora
iorium for the remainder of this years
cash payments. Experts taking the
view that Germany would probably be
able to balance her budget by January,
provided she is relieved of payments
until that time. The acceptance of the
proposed adjustment by France, advo-
Gates explain, would have the effect Of
placing all the Allies, including Great
Britain and the United States, firmly
behind France in the collection of the
reparations account.
1t is admitted that the proposals if
tentatively approved at the forthcom-
ling Franco British meeting could hard
ly be adopted by the two countries
for several months. 1t is explained,
however. that discussion of the plan
has gone far enough to make it out
standing and the most acceptable solu-
lt'on Of the German reparations prob
Ilem.
Germany Makes Payment
eially notified to-day that Germany
had deposited 100000 gold marks in
designated banks to meet her July Is
feparations payment.
The members of the Allied Commit
tee on Guarantees returned to Paris
To-day from a months inquiry in Ber-
lin, with the majority of it's members
leonyinced that a moratorium of two
years or more on cash indemnity pay
ments is the only solution of the
present financial crisis in Germany.
Inc report of the committee to the
Keparation Commission probably will
DE made Thursday or Friday.
LONDON, July II (By The Associated
fress) Premier Lloyd George, in an
swsr to a question in the House of
commons, said that the British gov
eminent was steadily pursuing policy
o. insisting that Germany adopt the
financial reforms recommended by the
keparation Commission. He said that
,he first essential was the re-estab-
ishment of the German financial sys-
lem is and the restoration of the equi-
horium n the budget.
q