The New York herald., 1922-06-08

Copyright, 1893, bv THE NEw York HERALD.
New York Herald Bureau.
London, June !.
Decision as to what shall be Great
Britain's course, if the International
provide loan by which Germany can
meet the terms of the Preparations Com
mission, Is awaiting the return of Prime
Minister LLOYD George. Meanwhile Of
ficials are going on with preparations
for the Hague conference, in the belief
that France will attend. They also are
waiting for the final report of the hank
ers' committee, confident in the expecta-
ton that it will indicate general belief
that the amount OF reparation must be
definitely fixed and at a reduced sum
Il way out of the European economic
morass Is to be found.
In quarters usually well informed ON
Mr.. Lloyd Georges opinion 1t is hinted
tonight that a general election must
precede any departure from the polrcy
outlined in the Prime Minister'S recent
speech in Parliament. 1t is stated that
an appeal to the country and fresh
mandate would be necessary II Mr.
LlOyQ GeOrge SnOulu ueClue elLneI "
break with France over the reparations
question, or commit Great Britain to
some policy of paying her own debts to
America, while forgiying her continen-
tai debtors.
Don't Want Break with France.
All officials here are extremely re-
luctant to discuss the possibility of
break with France. 1t is emphasized
again and again that France has per-
feet right to frame her own policy.
But, discussing the prospective bank
ers' report, one well posted official
said it was perfectly obvious that the
interest on the proposed German loan
could be provided out of customs and
other German receipts, while it was
equally obvious that no decent guaranty
that the loans capital can be recovered
would be possible unless Germany's
assets and liabilities were placed In
better proportion by a reduction OF
reparation obligations.
That this is an accurate reflection of
British banking opinion was proved by
THE NEW York HERALD correspondents
two day search among the most promi-
nent bankers here for their attitude on
the German loan. Without exception
the men asked declared that the flotation
of any considerable portion of Ger
man loan in England, with reparations
at the present figure, would be utterly
impossible. A loan of 00,000,000
marks could not be floated here, any
way, one said. While there Is some
money available, II will go first TO Brit
ish needs.
Another pointed out the futiiity in
asking the British investor to exchange
the British war loans for a German loan
under any circumstances. Unless he
could be assure of real and immediate
Improvement in the value of securities
held. II would be faithless advice for
banker to counsel such change In in
vestments. said another.
Depends on Bankers Report.
While Mr. Lloyd George is unwilling
to press this view upon France on his
own initiative, II Is pointed out that II
such q point of view Is determined by
the international bankers committee, 1t
can be presented to France as the COM
mon concept Of all concerned. Then, If
France dissents. 1t is possible that Mr..
Lloyd George will censtrue such dis
sent as isolated action" in which he
has said he would not support France.
If the bankers committee should re-
port, however. that there Is evidence
that Germany can pay without a loan
that she is not trying In good faith to
meet the augmentation it Is most
likely that Mr.. Lloyd George viii sup
port France up to the hilt. even to the
occupation Of additional Germany terri
tory.
Coupled with all this discussion In Of
ficial circles to-day came the announce
ment that steps had not yet been taken
to negotiate a new Anglo-French COM
pact, and the intimation was plain that
there was little use In attempting to
negotiate, IL some sort of unanimity In
an economic program was not attain
able.
The presence here next week of Pre-
mier Poincare or France Is anticipated
as an opportunity for securing some
understanding through personal con-
tact. though M. Poincare is understood
to desire to restrict his intercourse with
Mr.. Lloyd George to the most severely
formal terms evading the magic the
latter is supposed to exercise over his
fellow Premiers.
With sterling around per cent. below
normal exchange, while the franc Is
about 10 per cent less than normal ex-
change value. and with provision al
ready contained I'm the British budget
for payment of tire coming half yearly
interest on the United States debt, AZ
is pointed out that Great Britain can
better afford TO wait for developments
than can France.
AS far as The Hague Is concerned n
Is not likely that Great Britain will
make any reply to VI. Poincare's re-
cent memorandum. believing Il best to
reserve discussion untn the actual
meeting of the experts on the 18th of
this month.