The New York herald., 1922-12-08
Moratorium Might Be Accom-
panied by Guaranty Of
French Frontiers.

side that limit. The Government still
insists it has no definite plan to sub
NIT to NJ. Poincare. preferring sug-
gestions to come from him. 1t is pos
sible to state, however, that the opin-
ions. given Prime Minister BopaE Law
by treasury officials and other cofisti-
tutional advisers up to certain point
closely correspond with the outline Of
the situation written for THE NEW
YORK HERALD by Sir George Paish to-
day. Sir George is in close touch with
those financial influences in the city
and elsewhere, upon whose guidance
Downing Street and the treasury
largely rely.
1t is not believed the Government is
yet prepared to go so far as to pledge
Britain's entire share of German repa-
rations for the reconstruction of east
ern Europe. Certainly 1t is not yet
certain that the Balfour note will Jbe
torn up and European allied debts can
celed. But if France will be what the
British call reasonable the Bonar Law
Government will go far toward paying
high price therefor.
Paris Takes Pessimistic View.
News from Paris is generally pessi-
mistic, and officials here are making no
predictions. But a Paris dispatch in
the London Times this morning contains
the significant suggestion that NJ. Poin-
care, In certain circumstances, might
consent to reduce reparations to total
of $4,000, 100000. While this is regarded
as hopeful sign, 1t Is recognized that
certain circumstances" probably i'm
voive taking those productive foffeits''
from Germany as the price OF mora
torufn, which wrecked the allied con-
ference last summer here. though the
French press at the time blamed Lloyd
Georges golf
\ The Bonar Law Government is wfll-
ing 60 go n good deal further with the
strong hand on Germany. once a rea-
sonable plan is agreed to. But il is in
sisted here that the strong hand must
not be a stranglehold. French occupa-
ton of the Ruhr and Rhine valleys IL
regarded as such. If carried out. one
competent observer told THE NEW YORK
HERALD correspondent to-day, "it will
put Europe on the skids. You will see
the franc go to 200 to the pound. Then,
perhaps France will wake to realities
and choose a reasonable Government
There is a large section OF British opin-
ion holding that that is the only way
TO convince France, though her logic
MAY be perfect In demanding that the
brutal aggressor, not the Injured VIC
tim, should repair the damages OF war
"a logic. not in accord With the actual
facts at Che moment"
The Bonar Law Government fully
agrees with the logic OF the French po-
sit.on. but disagrees with the. methods
OF making the logic effective N,R3e nos
sibility OF an International loan enter
ing strongly into the British plan is
accountable foe yesterdays reports that
Mr.. George Harvey, the American AM
bassador might play "A definite part In
the week end meeting. British circles
to-day confirm the embassy's under.
standing of yesterday that Mr. Harvey
is not actually TO participate In anyway.
II II pointed out that IL is n private
meeting OF the four Premiers. The
American Embassy said that the con.
Nersatipns between Mr.. Harvey and the
American Ambassador to Germany and
the Minister to Belgium. both OF whom
are In London. are TO be solely on thelf
own initiative.
The possibility. even the probability.
that Mr.. Harvey will be sounded out in
formally remains. America is not ex-
pected 10 take the lions share OF the
international lsan, but what must be
sold I'm the United States will be Offered
only upon a strictly business basis Ger.
many will be expected to take large
share of the loan herself. That is the
British method ~ getting rich German
irdustrialfsts 20 assume n share OF the
reparatiens burden. According TO the
experts plans hero IL must be guaras-
teed by a mortgage on customs and
other readily modified German receipts
But II is, recognized here that II must
include two or three years suspension
OF cash payments, until Germany gets
on her feet.
yrorntorsum IL Needed.
It is recognized that the whole diff
Guilty will be TO satisfy M. Poincare thai
those years OF moratorium will not he
used FOR evasion. and there Is talk here
OF revival OF negotiations for treaty
whereby Great Britain and possibly
ether Entente Powers win guarantee the
French frontiers. Here, too. though. the
French will have TO take more reason.
eble stand that they did at the Canncs
confere.ce.
Sir George Paish's suggestion Of de-
voting the British share OF reparations
20 Russian. Rumanian and Polish recon-
strictlon is new element In the prob
lem. The suggestion IL undoubtedly
timely Col. Haskeil's account OF Rus
sian needs for outside credits seems 20
Indicate that Moscow would be highly
arnenablc NJ the present moment 10 the
sort II settlement she evaded at Genoa
and The Hague. The recognition OF old
debts would OF course again he O thorn
in any plan for credit 10 Russia. nut Il
Is believed the French would heartily
welcome British aid IN tho reconstr,ic-
tion of Poland and Isuinania and might
go to the point of not pressing their de-
mand that allied debts be cancelled In
proportion 20 the shading Of lndemnitics
POUND ANyTHIrGs