New-York tribune., 1922-11-07
II. S. Stand ON
Debts Blow to
POincarePlans
Washington Conditional Ac-
ceptance of Invitation to
Brussels Conference Is
Embarrassing to Premier
Talk of Inter-Allied Loan
French Realize That Portion
Would Be Used for Sta
biiizing German Mark
specsar cable to rne rr,ppne

Copyright. Iaa2. New York Tribune Inc.
PARIS, Nov. -Washington's will
ingness to participate in the proposed
Brussels economic conference only on
condition that the inter-Allied debt
question be not discussed has placed
Premier Poincare in one of the most
embarrassing positions that has been
his lot since he assumed office.
The American decision has just
reached the Quai d'Orsai from the
French embassy at Washington, to
which it was transmitted by the Unit
ed States Department Of State. It's
receipt has created an agitation here
which amounts almost to alarm. French
agreement to leave the questions Of
debts altogether out Of the Brussels
negotiations and taking part in de-
bate which would envisage pncondi-
tional pairing down Of German obliga-
tions could be compensated for only
by an inter-Allied loan. Even this
offers cold comfort.
Would Help Stabilize Mark
The French realize that portion of
such loan would have to be allocated
to Germany for the purpose Of stabiliz-
ing the mark. Another portion would
have to be set aside to cover Belgium's
priority reparations claims decreed by
the Versailles Treaty, and consider
able part Of the balance would have to
be used to pay Frances, creditors the
interest on her debt to them. The
French are wondering what would then
be left for them.
Premier Poincare could not sustain
such situation before his Parliament
for twentyfour hours. The opinion
was expressed In political circles here
to-day that it would be better from
the French point of view IL the United
States fatty refused to have anything
to do with the Brussels conference. AS
result of Americas conditional ac-
ceptance, however, the Premier is
faced with two policies from within
political circles.
The first of these emanates from
Senate circles and says that M. Poin-
care should approach France debtors
with proposal to accept payment in
German bonds. These debtors include,
among others, Rumania, Italy, Czecho-
Siovakia, Poland and Jugo-Slavia The
TeHieT Is Cnen asked TO arrange with
the Germans for guarantees and French
or Allied control, then later to effect
some arrangement with England. All
this, according to the proposal, would
be done before the Brussels conference
was convened. The Premier is then ad-
visd to inform the United States that
without discussion or inter-Allied debts
France must refuse to participate in
any general conference.
Some Favor Policy of Force
Out of thes=Chamber of Deputies
comes the other policy, which tonight
seems to be gaining ground. 1t is the
policy of taking by force from Ger
many that which it is regarded as i'm
possible to get otherwise. All in all
Poincare's position is extremely diff
cult, and direct negotiations with Wash
ington may be tried to aid him out of
the dilemma.
The French plan, in the face of Ger
! many's inability to meet her obliga-
tions, as elaborated by the Cabinet
July 27 and approved August 4, calls
for reduction Of Germanys liabilities
down to about 40,000,00O 900 gold
marks in the event that the Allied
creditors of France-primarily Eng
land and the United States-are will
ing to accept that part of the German
reparations known as German &C"
! bonds in compensation for French
obligations