The New York herald., 1922-08-15
Schanzer Proposes Nora
tOrium on French Debt to
Britain as Compromise.
ENTENTE NEAR RUPTURE
Belgian Vote in Reparations
Commission May Decide
Final Action.

Special Gable to THE NEW YORK HERALD.
Copyright, 1929, by THE NEW York HERALD
New York Herald Bureau.
London. Aug. II.
The London conference on repara-
tions broke up to-day, agreeing to
disagree" upon allied treatment of
Germany. 1t was frankly stated on all
sides that it had been found impossible
to reach settlement without partici-
patton in the discussion by the United
States.
The present program is that no fur
ther meeting will be called until the
several nations debt funding missions
return from Washington. There is,
too. some hope among all the con-
ferees that the American elections this
November may produce a change in
the attitude of the United States
toward allied Indebtedness.
So far as the conference is con-
cerned, and in the face of mutual
protestation to the contrary, there is
no doubt that France and England
have definitely embarked upon sepa-
rate ways. Frances precise position
and the steps she will take will not be
known until Premier Poincare consu,ts
his Cabinet.
The effect of the failure to reach an
agreement has put the burden Of
granting or refusing a moratorium to
Germany upon the Reparations COM
mission. Apparently the French will
renew their effort to induce The COM
mission to declare Germany voiun-
tary defaulter, after which, under the
Versailles treaty. France will have the
liberty to take action.
BeIgians May Decide.
The action OF the Preparations Com
mission is likely to turn upon the
Belgian vote and both Henri Jaspar,
Foreign Minister. and Georges Theunys
Premier and Finance Minister. present
ed picture of. distraction late tonight
when they made last moment effort.
visiting NJ Poincare to seek some way
out
As the situation stands at presen.
the Reparations Commission has given
Germany a moratorium and France has
rot secured her "productive" sanctions
But the situation remains so uncertain
that the mark seems bound to slump
further and the German debacle become
worse.
What may be a thin wedge of inde-
pendent action by France Is that the
conference agreed that payments
through clearing houses on private pre- +.
war debts must be exacted of Germany
for the installment due tomorrow. After
that each country will be at liberty to
act as II sees At. 1t is believed here
tonight that M. Poincare will continue
to turn the screw of his economic sane
tions. such as the expulsion Of Germans
from Alsace- Lorraine, increasing the
pressure in this aspect even IL he finds
II impossible on the main reparations
problem.
FniI. TO Eject Compromise.
II IL also hinted tonight that the
French Premier is beginning campaign
to prove Germany a voluntary fefanlter
Bolstering this idea before the confer
ence. he revealed for the first time that
the French have evidence that che Ger
man Government offered 4,00o.Ooo,O0o
marks as a loan to Czecho- -Sovakia and
made other official moves to get German
money out of the country into Pumania.
Denmark and Holland. amounting in
all. according to German estimates. to
so. 900. 000. 900 marks, or. according 60
TIE London Times, 100. .0o0. 900. 600.
The best hope left is that French
sction can be kept within bounds till
another conference. DR.. Schanzer, Ital-
IAN Foreign Minister. made a final effort
to effect compromise In to-day's ses-
sion OF the conference after he had
,ourneyed to Checquers Court to consult
Mr.. Lloyd George and had spent much
time with NJ. Poincare yesterday.
First he proposed NJ. Poincate's prof.
ect for "a compromise, which follows:
F'irst-The whole question of debts
and reparations to be considered on
November 2.
Second--Germany meanwhile to be
Continued on Page Four.