The New York herald., 1922-08-06
POINCARE APPLIES
PENALTY TOFORCE
GERMAN PAYMENTS
Orders Cash Due TeutOns
for Private Debt and
Property Held Up.
OTHER STEPS TO COME
First Mild Move Made When
Berlin Refuses to Pay
on August Is.
OFFERS ANOTHER CHANCE
Refuses Request That Matter
Be Held Off Until Lon
don Council.
OFFERS ANOTHER CHANCE

Special Cable to TIE New York HERALD.
Copyright, 1922, By THE NEW York HERALD.
New York Herald Bureau.
Paris, Aug. D.
Premier Poincare, upon receipt OF a
note from Germany to-day refusing to
meet the s1O,ooo.Ooo payment Of pri-
vate pre- war debts due French citi-
xens ON August 10. Immediately or
dered the suspension of all payments
10 German nationals for debts con-
tracted with Frenchmen before the war
and the suspension Of further pay
ments for German property seques-
trated In France. The latter property
includes that n Alsace- Lorraine. These
are the first of series OF threatened
penalties.
Although the door is still open for
further negotiations it is understood
that M. Poincare will carry out his
screwdriving policy unless Germany
Immediately and absolutely changes
her attitude with regard to her flnan-
cial obligations.
implanted on German property rights
in Alsace-Lorraine will be further
tightened next week by the expulsion
OF some 150 German nationals and the
confiscation OF their property unless
Berlin Immediately makes guarantees
that the payments due August 1o will
he met
More Penalties. Threatened.
The penalties applied to-day. which
arc light in comparison with those to
come, have the effect OF deprivlng Ger
man nationals in Alsace- Lorraine Of
certain property rights which they
could claim through the Treaty OF ver-
sailles. They are intended as warn
ing to Germany to stop her dilatory
methods. 1t would seem that Premier
Poincare desires to have the opinion
OF the Allies before applying stricter
measures so as to bring Great Britain
and Belgium around to the French
viewpoint that the continual rearrange-
ment OF Germany's financial obligations
IS detrimental to the allied interests
II is reported that France is goins to
the London conference with full and
complete reparations program. While
he is ready to accord Germany a short
moratorium = few weeks - Premier
Poincare, II Is understood, will proposa
new financial. monetary and budgetary
reforms
At the same time the London negotia-
tors will have before them a new repa-
rations plan calling for the realization
OF mortgages on German resources. such
as mines. forests and customs and par
tcipation in German industry by the
Allies to the extent OF 26 per cent
During the moratorium Germany will
% expected TO carry out Immediately
rhe reforms which will be dictated to
her. At the expiration of the time limit
France would reserve the right to apply
Immediately further sanctions. including
military measures. if necessary.
PARIS. Aug. fAssociated Press) -
Official circles said that France would
now await some move by Germany. III
Belgium and Great Britain, as has been
Indicated. desired 70 forego payments
from Germany on the private debts due
their nationals, It would have no effect
upon the French position. II was de-
clared. France will insist upon the
payment of these claims despite any
moratorium that the London conference
may decide to grant. 1t was added. and
II Germany does not meet the French
demands the measures will become pro-
rressivcly more severe.
Reply Held Unsatisfactory.
The German Charge d'AffaIres brought
the German answer TO the French uIti-
niatum TO the Quay d'Orsay few min
utes before = o'clock. Premier Poincare
~ once pronounced IL unsatisfactory and
gave orders that the application OF the
French mea asures should begin. He de-
parted for his home five minutes after
noon and his reply was sent to the Ger
man Embassy a few moments later.
In his reply the Premier notified Ger
many that her "dilatory" answer to the
ultimatum had been unsatisfactory. and
that France was taking measures TO pro-
feet her interests.
The German noe asked the French
Government TO reserve It's decision until
the subject was discussed at the coming
London meeting OF the allied heads of
governments, in view OF the fact that
both Belgium and Great Britain were
willing TO consider the debt question In
connection with the moratrium issue.
The French Premier takes the view
that payments on prewar debts Is a mat
ter for German business men. who are
obviously prosperous. and that IL cannot
be coupled with the present state Of Ger
man Governmental finances
Text OF German Note.
According to the text OF the German
note, made public here. the German Gov
ornment asks for suspension OF the pro-
posed measure IN the following terms:
Since your Excellency's note OF July
rs the financial and economic situation
IN Germany hns continued to grow worse.
Marks have fallen to 2.100 Of their pre-
war valve. The capacity OF Germany
has diminished accordingly
Under these conditions the German