New-York tribune., 1922-08-03
French See Plot
10 Force Hand
|Of u. S. ON Debt

BY Wilbur Forrest


Il Copyright. 1892. New Tork Tribune Inc.
& PAR1S, Aug. 1.-TWO distinct reac-
sttnEis were observed here to-day to the
MEad of Balfour's note suggesting the
general cancellation of the interallied
debt. The first and most marked was
stsveioped in political circles, where
it was declared that the note was an
attempt to form European bloc in
ssn effort to bring moral pressure upon
the United States to cancel her debts
to European countries or to place the
sSbreak- down of world finances directly
at the door of the Washington govern
snient. The second reaction was felt
i'm financial circles, where the belief
was expressed that the Balfour note
Sopsned a new channel for the solution
OF the whole financial and economic
crisis.
Balfour Heads Bloc
s With previous knowledge that Bel
gum and Italy will stand with Great
britain in the proposal and with def
6nste assurance that the United States
-. unwilling to cancel the enormous
Indebtedness, those who view the stu
sation purely in a political light be-
1ieve that Balfour has virtually put
8hIa1self at the head of bloc to force
the. United States into an awkward
position. 1t was learned tonight that
EPremier Poincare will not answer the
BMfour note because he is unwilling
ty,place himself in position OF join
ing a maneuvre TO embarrass Wash
@ngton. For this reason the Premier
will not lay stress upon the inter
Ailied debt at the forthcoming meet
ng. with Lloyd George but doubtless
Viii call attention to that part of Brit
aims note expressing willingness not
ito acollect more from her European
dabtors than the United States de-
Aiards from England.
Assuming that the offer includes the
British share of German reparations
athounting to 9l,45O. 600 900, Frances
war var debt Of $500, 900 900, Russia's $780,
099.000, and total of G700 100000 from
be other Allies, including Italy and
Belgium, the total wiped of would be
400 900, less 9850,000,000 due to
the, United States, which she expects
hst -debtors to pay.
49, Would Ignore Debt Problem
by these figures the French debt
s9pRid be reduced to 174 per cent of
II ne ooriginal figure, or about 9105, ,000,-
Do0.- 1t was learned from source
scfose to Premier Poincare tonight that
ne feels 1t would be better to ignore
the swar debt problem entirely at the
Lhhdon conference and to confne the
discussion to the present German stu
alton.
The Premier day gave orders for
progressive reprisals against Germany
as result of her refusal to paw com
pensatlon for private pre-war debts
! What form the reprisafs will take is
3l1 9t yet known.
PARIS, Aug. 2 (By The Associated
Press). ).--lnformation is said to have
reached reparations headquarters from
an authoritative source that Lord Bal
Eour's note was "trial balloon sent up
or sthe purpose of placing response
sollity for solution of the debts ques-
@ion. directly at the door of the United
KStates."
1T the balloon bursts through n re-
sfussl of the United States to depart
from its already established policy. the
Preparations experts have been in
formed that Great Britain will proceed
to"a general discussion at the coming
London meeting of the French debts,
regardless of the American policy.
All German property in France which
was sequestrated by the government
furing the war will be permanently
ken over and the proceeds from its
sale kept by the Treasury as penalty
for Germany's refusal to continue the
present scale of payments for private
debts contracted with Frenchmen prior
10 the war, according to reliable re-
ports in circulation tonight
The Foreign Office continues silent
on the exact nature of the penalties to
ne imposed, but it has been learned
that the pressure probably will take
this form.