Evening star., 1922-08-05
FRENCH ENFORCE
DEBT PENALTIES
ON THE GERMANS
Failure to Meet Pre.War oh.
legations to Citizens Brings
Quick Action.
SEQUESTRATED PROPERTY
PAYMENTS ARE STOPPED
Step Taken Independent of Allies.
More Severe Measures Threat
ened if Warranted.
By the Associated Press.

By the Associated Press
PARIS. August 5.-Premier Poincare
at noon today notified the German
embassy at Paris that the first OF
series of measures to conserve French
interests against lapse in Germany,s
pre-war debt payments would be put
into effect Immediately. The notice
followed the receipt of a note from
Germany refusing to meet the s2-
100000 installment Of these payments
to French citizens due August is.
Inc nrst OF the French measures
consists of the immediate SUSPENSION
OF all payments to German national.
Tor debts contracted with Frenchmer
oetore the war. both in France and
Aisace-Lorraine. A The offices In Pari.
and Strassburg which were set I'D t.
iiquidate these debts were notified t.
cease functioning at once and to pa
no more German claims until furths
orders from the premier.
Other Steps to BE Taken.
The initial measures also include Ii.
suspension of all further payments
Germans for German property secu.
tsated In France. This property il
cludes estates. villas, art collection
ETC.
The agreement reached at Baden
BADEN. under which Germans wer,
being compensated for the house fur
nishings. stocks. bonds and cash lefi
IN Alsace and Lorraine. also is sus-
1t was explained at the foreign of.
nee that these first measures taken
are not penalties, in the strictest
sense OF the word. but merely action
10 safeguard the French interests.
which have been 5eopardized by tn
Germans refusing to pay.
More Severe Measures Likely,
II these measures fail to bring i
satisfactory settlement further and
moro severe measures. it was said
will be enforced. The nature o:
these IL withheld pending the effect
OF the present action. Oficial circles
said that France now would await
some move by Germany
II Belgium and Great Britain desire
to forego payments from Germany on
tionais this will have no effect upon
the French position, it was declared
France will insist upon the payment
OF these claims despite any mora
torium that the London conference
may decide to grant, ii was added.
and il Germany does not meet the
French demands the measures taken
will become progressively more
severe.
German Reply Unsntisfactory.
The German charge d'affaires
brought the German answer to the
French ultimatum to the quay
dOrsay a few minutes before IL
o'clock. Premier Poincaire at once
pronounced it unsatisfactory and
gave orders that the application of
the French measures should begin.
In his reply the premier notified
Germany that her ''dilatory" answer
to the ultimatum had been unsatis-
factory and that France was taking
measures to protect her interests.
The German note asked the French
government to reserve its 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 con-
slider the debt question in connection
with the moratorium issue The
French premier takes the view that
payments in pre-war debts is mat
ter for German business men. who are
obviously prosperous, and that II can
not be coupled with the present state
Of German governmental finances.