The evening world., 1922-08-05
FRANCE ENFORCES PENALTIES
FOR GERMAN FAILURE TO PAY;
A[SACE BANK BALANCES HELD
No Military Action Involved
in Present Measure; Re-
prisals Will Be Progressive
if Delay Continues.
Germany Tells France Action
Is Unwarranted Under
Terms of Compact and
Versailles Treaty.
PARIS. Aug. s (Associated Press,

PARIS. Aug. ASSOCIATED Pressl
Premier Polncare Mt noon to-day
notified the German Embassy in Paris
that the first Of series of measures
TO conserve French interests against a
lapse in Gcrmany's pre-war debt pay
ments would be put into effect imme-
diately. The notice followed the re-
Cci1t of Il note from Germany refus-
ing to meet the $4,000. 900 instalment
OF These payments to French citizens
due Aug. IS.
The firTt OF the French measures
consists of the immediate suspension
OF all payments to German Nationals
for debts contracted with Frcuchmen
before the war. both in France and
Alsace-
The offices in Paris and Strasbourg
which were set up to liquidute these
debts were notified to cease function
ing at once and to pay no more Ger
man claims until further orders from
the Premier
The initial measures a.so include
the suspension of further paypents
to Germans for German property Sc
quostrated in France, including es-
tatos. villas, art collections. etc.
The Baden Baden agreement, under
which Germans were being compen-
| stated for house furnishings, stocks,
bonds and cash left in Alsace Lor-
raine also is suspended.
1t was explained that these first
measures taken are not penalties, in
| a strict sense, but merely action to
| safcguard French Interests jeojar-
died by the Germans refusing to
pay
II these measures fail to bring a
| salts "a ctory settlement, further and
more severe measures, II was said.
viii be enforced, the nature Of which
s. Withheld pending the effect OF the
present action. In official circles II
was said that France would now
| await some move by Germany.
If Belgium and Great Britain de-
sired to forego payments on private
debts, this will have no effect upon
| the French position, 1t was declared.
| France will insist upon payment, de
spite any moratorium that the Lon
! don Conference may decide to grant,
| and If Germany does not meet the
| French demands the measures taken
lwill become progressively more severe.
| The German Charge d'Afraires
brought the German answer to the
Quay D'Orsay few minutes before
Il2 o'clock. Premier Poincare pro-
nOuuccd II unsatisfactory and gave
orders that the application Of the
| Ercu,h measures should begin. He
left Tor ms home five minutes after
noon.
In his reply the Premier notified
| Germany that her "dilatory" answer
TO the uItimatum had beon unsat!s-
| factory and that France was taking
| measures to protect her interests.
The German note asked the French
| Government because of the decline in
| marks, to reserve its decision until
| the subject was discussed at the com
| ing London meeting OF the heads OF
| allied Governments.
| The French Premier takes the Wow
| that payment on pre-war debts Is
| matter for German business men. who
| are obviously prosperous, and that it
| cannot be coupled with the present
| state of German Governmental n
nancos.
Regarding the applicability OF the
| measures Of "retortiOn," the German
| note says:
According to the agreement Of
June, 1921, the only consequences 10