The New York herald., 1922-08-13

Following the reading of the 3
French declared they could not seric
tonight indicates a deadlock.
The British Cabinet to-day unal
Prime Minister Lloyd George with re
to leave the matter entirely in his
hands. The Prime Minister announced
he was going out of town over the
week end and would return Monday.
Until then he win not be prepared for
consultations
Moratorium for Rest Of Year.
The text Of Premier Lloyd Georges
proposal. which forms part of the
tenth point of the British memoran-
dunn, reads:
Subject to acceptance by the German
Government of these guarantees it will
be for the Reparations Commission to
grant moratorium in respect to all
cash payments remaining due from
Germany up to December 81. 1922. and.
further, the commission shall as soon
as possible fix the annual payments in
cash In respect to all peace treaty
charges for the succeeding period at
such an amount, not exceeding 26 per
cent. of the value OF German exports,
as they may find to be proper with a
view to the early flotation of loan
by the German Government, the major
portion of which shall be devoted to the
payment of PREPARATIONS"
M. Poincare had doubts regarding the
Interpretation to be placed on this ar
ticlc. and it was one of the points
referred by the Premiers to the COM
mittee of experts. Only at this after
moons sitting of the experts committee
did NJ. De Lasteyrie, the French FL
nance Minister. obtain explanations
from the British members that it was
designed 20 reduce the total cash pay
ments to a sum amounting to rs per
but leaving the possibility still of pay
ments In kind.
French Could Not Accept.
NJ. De Lasteyrie is understood to have
informed the committee there was not
the least chance of the French Govern
ment accepting such an idea, or seri-
ously considering it. Consequently the
negotiations between the French and
British are at stnndstill
The members of the French delegation
were greatly surprised that Mr.. Lloyd
George should send word to M. Poincare
that he was leaving London over Sum
day, thus causing the loss of one day
when only two remain before the cxpi-
ration OF the date august 15) on whick
the next German payment is due under
the partial moratorium now in opera
tion.
Premier Theunys Of Belgium and his
Foreign Minister, M. Jaspar. called on
M. Poincare late this afternoon to dis
ct;ss the situation, and tomorrow there
viii be a meeting without Mr.. Lloyd
George OF NJ. Poincare. M. Theunys and
Sjgnor Schanger. the Italian Roreign
Minister.
The Italian delegation shares the
French view completely, the Beagians
less so because Belgian interests IN
reparations are protected by priorities.
difference over Forest Control.
The experts this morning discussed
the procedure to be adopted in connec-
zion with German mines and forests.
The British view is understood to be
that there should be allied supervision
of these resources only In case Ger
many should default in her reparations
paynents. The French view. on the
other hand, is that there should be COM
plete control, regardless Of this con-
tingency
1t was stated this afternoon that no
compromise on this question was in
sight. Meanwhile the other French
proposals. such as the establishment OF
4 customs line along the Rhine. the
hemming in of the Ruhr section and
60 per cent. share in the profits of Ger
man factories, are held in abeyance,
although the French have not said they
are willing to relinquish these proposals
entirely.
II was stated in British circles that
an attempt had been made In certain
quarters to raise the question Of inter-
allied Indebtedness, but these efforts
have not yet been successful, the Brit
lsh view being that the question OF
moratorium should be settled before
taking up anything else
At this mornings meeting the Bel
gian ana italian members supported the
French position regarding the control OF
German mines.