Evening star., 1922-06-11
BY the Associated Press.

BY the Associated Press.
PARIS. June 10.-The international
reparations commission. after recit-
ing the commissions original instruc-
tions and quoting the texts of the
bankers question and the commits
sion's reply regarding the enlarge
ment of the scope Of it's work. gives
the committees views under the
heading 1.-The position of the COM
mittee in relation to the commission"
The report then continues:
'On receipt of this reply. indicating
that the chief creditor of Germany
did not desire that any recommends :
tion should be made which would in
volve the possibility of new limita-
tions on Germany's obligations. the
committee decided that they could
not usefully TO rthe time being con-
tinue their inquiries. and that they
ought therefore to confiae themselves
to furnishing a reply to the question
originally addressed to them. taken
in it's more restrictive sense. and at
the same time give their reasons for
this decision.
lat the outset the committee de-
sires to make their own position clear
beyond the possibility OF misconcep-
ton The members of the committee
We're invited by the unanimous deci-
sion of the reparations commission
to come to Paris in order that they
might give technical advice as bank
ers on the conditions. under which
an external loan could be raised by
Germany. At no time have they mad
the wish to usurp wider functions.
Advice Only One Factor.
They fully realized throughout
that their technical advice once given
would constitute but one factor In the
problem which has to be solved Dy
the reparations commission ana oy
|the allied governments alone. AS
soon as they met the bankers on the
committee were unanimous IN their
opinion that for various reasons they
could not within the limits OF their
terms of reference. understood In
their more restrictive sense. offer any
prospect of an external loan.
Certain members, however. were
Of the opinion that If the commits
sion or the governments made
more definite statement than at pres
ent exists regarding annual pay
ments which they intend to exact
from Germany, such loan could be
favorably considered. Had they re-
state what limitations of these pay
ments were in their opinion neces-
sary condition of external credit.
these members would have been glad
to do so.
such limitations would. however,
have been recommended only as con-
ditions of a loan-only loan-were
desired They would have implied
no view as to the amounts Whlch
the commission could or should en-
force if the governments were con-
tent to wait for the annual pay
ments without mobilizing them pe-
forehand by a loan.
Only Payments Considered.
THE commission or governments.
even If they had considered the opfn :
ion of the committee to be a sound
one, would nevertheless have been
perfectly free to decide that they
preferred to continue to consider
from year to year the capacity OF
Germany and to determine the pay
ments accordingly.
In other words. any figures mem
toned would necessarily have rep
resented opinion not as to the PROB
able maximum capacity OF Germany,
public of the world. forming its
Judgment amid all the perp!exities
of the present situation, would con-
fidently believe would be well WITHIN
Germany's capacity.
Payments even SO cautiously esti-
mated would still be very consider
able. The committee recognizes that
the allied governments might never
theless desire, even at the cost OF
foregoing the loan, to return full
liberty to exact larger annual sums,
which Germany's developing capacity
might later render possible. the
governments would not only have
been at full liberty to take such a
decision, but II taken, it would have
been in no way inconsistent with the
technical advice Of the committee.
Reasons for Adjournment.
IT this advice had been given. how
ever, a decision could have been tax
en- in the light of clearly presented
alternatives. In these circumstan-
slider whether they could usefully
continue their studies in responce to
the majority invitation of the COM
mission They decided that for the
time being they could not do so, for
the following reasons:
"G) Francee Is Germanys chief
creditor in any reparations problem
tant factor The members of the COM
mittee had hopes that the chief bene-
fit Of any advice they could have
given would have beer. derived by
france, lney are dli cAlEcWcly
anxious that no action of theirs
should injure her interests. If,
therefore. France does not now de-
sire any inquiry into the more gen.
eral conditions necessary for the re-
establishment of Germany's external
credit, the committee does not feel
Justified in undertaking such inquiry.
They are confirmed in this view by
the consideration that in the existing
circumstances they could not have
prof1ted by the assistance Of their
French colleagues.
"(2) AS explained below. the COM
mittee considers that a favorable
f1otations of a loan. The known diff
ferences of view among the members
of the committee as to the limit of
the committees mandate have for the
time being created an atmosphere
unfavorable to such an issue. The
fail to take into account this fact,
being aware that If they advise as to
the conditions of a loan they incur
moral responsibility to do all in their
power to make the loan successful.
Decide to Suspend Work.
For the above reasons the COM
mittee decided that they must sus-
pend their work for the present.
feeling that they were thus unable
to take advantage Of the majority
Invitation of the commission to ex-
tend the scope of their deliberations.
The committee considered the prob
lem presented under the original
mandate as it was understood in Its
more restricted sense.
"On the assumption that the pres
ent provisions Of the treaty Of Yer
sailles and the schedule of pay
ments remain unchanged, is an ex-
ternal loan possible, and. il so. under
what conditions? The committee were
cnnfrnnad with the following difi.