The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-09-13
NATIONAL RIVALRlES
KEEP LEAGUE FROM
SUCCOR|NG AUSTRIA
Italy and Little Entente
Hold Opposite Views on
Vital Questions.
STILL PRINTING NOTES
Nearly Two Trillion Paper
Crowns Issued; 247 Mill
ion in Last Week.
DIR. SEIPEL REPUDIATED
Vienna Parliament Informs
Chancellor 1t Rejects Pro-
posed Foreign Control.
DIR. sEIPEL REPUDIATED
by LAURENCE HILLS.

Special Cable to THE NEW York HERALD.
Copyright, 1929, By TIE New York HERALD.
GENEVA Sept. 12.-The prospects for
a solution Of the Austrian problem by
the League of Nations are not bright.
Italy and the Little Entente hold OPP
posite views upon vital phases of the
question, and this, together with the
Austrian Government, In response to
the demands of workers associations
since the negotiations here with the
assembly began, is making the prob
lem so complicated that the commit
tee for drafting an Austrian program
is almost az standstill.
1t has now asked Chancellor Seipel
to appear for another hearing, but
there is not much hope that solution
will be found. This pessimism is due
to the following reasons:
First-Italy's insistence that in any
Austrian plan the principles OF the
Porta Rosa scheme shall be incor-
porated, giving her certain preferential
privileges in the hinterland Of Trieste,
thus affecting Austria's commerce and
railways and being designed to build up
Trieste at the expense of Czecho-Slo-
vakia and Jugo-Slavia. Also 1t is
urged that the interests of Trieste
should not be promoted at the same
time as vital question on the same
plane as that of saving Austria.
Second-The fact that since Austria
".
not stopped printing bank notes, as adj
vised by the Allies. but issued 247,ooo. 900
paper crowns last week. with the total
issue now nearly 1000. 600 .coo. goo crowns.
all Of the committees calculations have
bean upset in consequence.
Little Entente's objection.
on Saturday Marquis Imperiali. for
Italy, submitted the Italian plan. which
Immediately brought an. objection from
Or. Eduard Benes. the Czech Premier.
who has now put In a counter proposal.
The Italian plan provides:
]. That no customs shall be increased
until the Austrian budget is balanced.
2. That a new bank of issue shall be
created to handle the proposed 100000
600 international loan, this institution
70 issue new currency upon new basis.
3. The dismissal OF all superfuous
state employees.
4. The creation of an International
control commission, which shall issue
the money raised only in monthly sums,
as Austria carries out the prescribed
DEGREES. the operation OF this scheme
being contingent upon the Austrian Par
lament passing n law at once authoriz-
ing the Government to issue any DEGREES
demanded by the control commission.
It is provided that Austrian loans
shall be secured by customs, tobacco and
salt monopolies, but on condition that
the bankers who furnish the money shall
receive an underwriting guaranty from
their respective Governments.
yeipel hoses Control.
The Committee has learned that the
Austrian Foreign Relations Committee
has informed Chancellor Seip.l that the
Austrian Parliament would not accept
the allied control which he promised here
and that the trades and civil unions
dominated Parliament and insisted on
the issue of more bank notes.
In consequence IL now appears TO the
committee that little II any reliance
can be placed upon the statements Of
the Austrian representatives, as appar-
emily they have not the support of the
elements controlling their Parliament,
driving the nation further into bank
ruptcy without regard for the efforts
being made here TO prevent It founder
Ing altogether.