The New York herald., 1922-08-12
CONFERENCE FIXING
MORATORIUM TERMS
4.
Agrees on Customs Levy
and 26 Per Cent. Duty
on Exports.
REICHSBANK CONTROL
French Abandon Ruhr Bar
rier Plan and Seizures
on Left Of Rhine.
RPTTTcu DnTNnc rADDV
BRITISH POINTS CARRY
official Quarters Pessimistic OF
the Outcome Despite Seem
ing Progress.

Special Cable to THE New YORK HERALD.
Copyright, 1893, bv THE New York HERALD.
New York Herald Bureau.
London. Aug. ii. J
Deadlock" and mo agreement yet
seems possible" were phrases which
were used authoritatively in French
and British quarters respectively to-
night to describe the state Of the con-
ference OF separations
Nevertheless, information Is avail
able to show that substantial progress
has been made toward an agreement.
and it is known the French represen-
tatives will not leave until next week.
Official pessimism is based upon the
fact that unless a full agreement is
reached minor agreements will fall to
the ground. Progress was made when
the British submitted their own coun-
ter proposals. And it is said that most
OF to-day's argument had to deal with
conditions for a possible moratorium
proposals.
The British describe the counter
proposals as based on the experts re-
port on Premier Poincare's proposals.
and M. Poincare himself is understood
TO have told Prime Minister Lloyd
George that the British proposals fol-
lowed closely his own, with mere mod
iflcations in their application.
Tho ar<o
night and again tomorrow morning.
All the conferees plan to remain In
London over the weekend, in hopes
that they may reach a definite settle
ment before the next German pay
ment Is due next Tuesday.
Premiers Meet at Breakfast.
The British proposals were embodied
in a note on the British position. circu-
lated to-day after M. Poincare and
Georges Theunys. Belgian Premier and
Minister Of Finance. had spent five
hours sitting over the breakfast table
In Dowing street. The white cloth again
proved better medium OF negotiation
than the green. As result Of this con-
ference the British agreed to the
French proposal that the Reichsbank
must be made Independent Of rhe Ger
man Government and the Allies per-
mitted TO supervise its operation
Differences arose over whether such
control should be extended to the issue
of paper money and Of treasury bonds.
Mr.. Lloyd George was reported not to
have opposed the constitution OF per-
manent allied commission to sit in Ber-
lin for such purpose.
A substantial agreement for a customs
levy and the ALLEGATION OF a rs per Ger t.
exports levy to the Golfers Of the Rcpar a
tions Commission direct was reached
The French believe the British sugges-
tion on this point more effective than
their own.
Mines and forest control were touched
upon only lightly. but the French got
the impression that the British plan
for a step was not as effective as
France would like
The French have practically aban-
doncd for the purpose of the conference
their plan for customs barrier around
the Ruhr Valley and beyond the oc-
cupied region. They have come to the
conclusion that such barriers could not
be enforced without the help of the
other Allies, and there is no hope of
inducing the others to agree. They
plainly intimated, however. that France
would reserve these among the meas
ures they might adopt toward Germany
II forced TO act alone. This Is partic-
ularly so about the dye industries on
the left bank of the Rhine.
Efve ~ fha british poipta ara ,,nJar
stood to relate merely to measures APP
plying to those already mentioned, and
these with the entire program are now
remitted to the hands of tho experts.
There Is no explanation from any source
of how the experts. who were desirous
that all OF NJ. Poipcares plan should
be held impractical. can now pronounce
n similar program practical. when the
statesmen merely changed their meth
ods.
French for Moratorium.
According TO to-day's developments
tho French have moved forward In two
Important particulars. They are willing
now that moratorium. probably for the
rest OF the year. should apply to the
measures adopted by the present confer
ence. as well as general claims and
sanctions against Germany, and they
have definitely abandoned Ruhr customs
and left Rhine bank seizures. And as a
result OF long talks the beneficent in
fluencc OF M. Theunys and confer
once tonight with Carlo Schanzer. the
Italian Foreign Minister, the two Lead
ers are now closer together than ever.
But the gap between what the British
think Germany and the world need and
the French demands still yawns. In ef-
feet the conference went back TO what
was then characterized as the "final''
meeting OF the Supreme Council In May,
1921. just before the Fehrenbach Minis
try fell in Berlin. and when the Lon
don" scale of reparations. with an elabo-
rate bonding scheme for an international
loan. was adopted to prevent the then
Premier BRAND occupying the Ruhr
with exception OF the moratorium pro-
visions the present negotiations differ
little from those which proved futile,
though the scheme then advocated pro-
vided for an allied control of Germany
rrnx would work elastically as Ger
many's prosperity waxed and waned.
In May. 1921. however. It was hardly
possible TO forecast the mark at 1000
70 the pound sterling.
One OF the most hopeful indications
IN the conference Is that the French
arc talking less of isolated action, and
sln nrfffcA, leao pf rt,r@,,vn ~ tbo r.