The Washington herald., 1922-08-07

LONDON. Aug. 6.-with Europe
in the most critical condition since
the war. the most fateful confer
ence since Versailles opens at 10
Downing street tomorrow with at
least four of the Big Five" allied
nations represented.
The deliberations will revolve
around Premier Lloyd George and
r Premier Poincare. Italy will be
represented by Foreign Minister
Schanzer and Finance Minister
Paratore; Belgium by Premier Jas
per and Finance Minister Tkeunis.
The delegates arrived late today
and were greeted by Lloyd George.
The conversations, which begin
at IL o'clock tomorrow. are expected
to review the whole financial posi-
tion of Europe, with emphasis on
reparations and interallied debts.
which have just brought France
and Germany almost to swords
points.
wfss Discuss Moratorium.
The categories into which the
discussion will fall can be broadly
outlined as follows:
1. Frances isolated action re-
garding the imposition of economic
sanctions on Germany, following
the clearinghouse payments de-
manded toward settlement of pre-
war private obligations with
French citizens
2. The question of a moratorium
on reparations payments and tae
terms on which 1t will be granted.
II At all.
.. Reparations. especially wheth-
er and to what extent they will be
scaled down and the relation of
such to the cancellation of inter-
allied war debts, particularly the
French obligations to England.
Face Many Obstacles.
Prospects for the conference of
nor are the possible consequences
of the general European situation
cheerful. II the present crisis is
not solved-and the obstacles to a
solution are extremely plentiful
then obviously Europe's chronic
Illness will take a turn for the
worse. fastening the downward
plunge to financial and political
chaos.
In addition to the fundamental
Emergencies always existing be-
tween England and France, the
present situation is aggravated by
an atmosphere OF recrimination
which has seldom been equalled
since the war. Premier Poincare's
action against Germany, taken
without consulting Great Britain.
has piqued Downing Street. And
the recent note of Lord Balfour.
serving notice that Great Britain
must collect her loans to France.
has only hardened the French dele
cation to make Germany pay.
Demands Financial Control.
Unless Premier Poincare Is bluff
fng for home consumption. II is not
likely that he will agree with Pre-
mier Lloyd Georges recommenda-
tions in favor of a more moderate
attitude toward Germany. The
French premier favors only the
briefest moratorium for Germany.
accompanied by the most rigorous
financial control over Germany and
consenting to a readjustment of
the reparations schedules only on
condition that Great Britain agrees
to write of a liberal slice of
Frances war borrowings.
If the French and British pre-
miers are unable to agree on these
points, separate action against
Germany by France is likely to be
again threatened. But Lloyd George
Is determined to exert his utmost
strength in a last effort 10 fnd sal
walton for Europe. and he is re-
solved that the conference shall not
be fruitless.
The British delegation will in
clude. besides the prime minister.
Lord Curzon. foreign minister: Sir
Robert Horne, chancellor of the ex-
chequer: Austen Chamberlain. gov
ernment leader in commons. and
Sir worthington-Evans. minister of
war. Premier Poincare will be ac-
companied by his finance minister,
Canut da I.asfavria