New-York tribune., 1922-07-28
Cabinet Agrees TO Accept
40 Billions in Cold
Marks, Instead of 1872
Billions Germany Owes
LOng-Term Bonds
To Cover Balance
Early Agreemen! by Brit
ish Asked; Plan includes
Moratorium and Loan

Copyright. 1889 Nsw YORK. Tribune inc.
PARIS. July 27-Final and unani-
nous decision on tho French policy on
German repnrations was reached to-day
nt council OF an the Cabinet ministers
AZ Rambouillct. President Millerand's
country residence. after both morning
and afternoon sessions. On the high
est authority The Tribune CORE
spondent Is able 20 outline the main
points OF the decision az follows:
As an incentive 20 Germany 10
pay and 20 Tighten the burden on the
Berlin government. France Is will
ing. with the consent Of tho other
Allies, 10 make Germany's immedi-
ate obligation 10000. 100000 gold
marks, instead Of 1872 32000.O00,00 as
originally fixed by the Allied pre-
micrs. Tho remainder. 92,0O0,000, 900
marks. now funded In bonds would
be extended over a long term, and
these bonds, the French propose,
should be applied 20 the discharge
OF intcr-Allicd obligations.
France feels that the 40.000,000.-
900 gold marks is a reasonable charge
for the restoration OF devastated
regions and is within Germany's
capacity 20 pay.
France will be satisfied with the
10000. .000000 provided the reduction
In the cash demand serves 20 make
possible an international loan 20
Germany. and that the other Allicl
recognize Frances special right 10
priority payment for the work In the
devastated regions.
Ready to Grant Moratorium
IN line with the foregoing plan
France stands ready 20 grant a new
moratorium 10 Germany, even on the
payment OF 50,00O.0OO gold marks due
on August 10. III Germany BE- not will
ing 20 submit new securities and guar
antics not only for the Reparation
Commission plan OF financial control
Of Germany, but others named By
France, IN the shape Of temporary
Allied control OF all German custom
and al state properties as hrs'
mortgage, then France has other plans
At the forthcoming conference IN
London Premier Poincare viii propose
tho new French program and oher
Frances collaboration along rs lines.
II tho question OF Allied debts can be
discussed az London France will pro-
nose the application 90 such debts, aot
only the &C" bonds, totaling $4,000
100000 q gold marks, but the 10000,
600 900 OF "B" bonds also, which would
leave 10000 100000 ns Germarny's re-
naming obligation. 20 be wholly allo,,
Gated TO repair the wars devastated
N the Allies. especially England and
Belgium, agree 70 Frances plan'
France feels that there will be no ne
eossity FOR the occupation Of further
German territory as a guaranty OF pay
mont. But II there can be no agree
ment with the Allies on this basis
France stands ready 10 80 on her way
alone and occupy territory along INC
lines explained In dispatches 70 Inc
Tribune last Tuesday.
Early Conference Advised
Al to-day's Cabinet meeting, which
listed five hours and at which every
minister was given full opportunity q
express his views, IL was decided tha'
tho new French policy must be eN'
nlained 70 other Allies as soon as
possible. and 20 this end a general Lon
don conference Of the Allies viii be
urged on Premier Lloyd George during
the first few days Of August.
II is demanded that the whole rep
orations problem must be settled m
principle before August 10, when th'
newt German payment falls due. In,
Tribune correspondent Is informed
that II for any reason Lloyd Georg.
insists on delay beyond August Il
France is determined 20 explain hc,i
new policy by means Of notes to all
the Allied powers within the shortest
time possible.
once adopted the French plan means
that Germany's obligation 70 pay 49,,
600 600, 900 gold marks will be reduced
10 an obligation 70 pay 10000 100000
for the devastated areas as political
debt and the remainder would be set
tled with the creditors Of France first,
England and eventually the United
states II Washington is willing TO ae-
cent German bonds as payment OF the
French debt.
France would receive perhaps no
more than she has already spent re-
pairing her own devastated regions, but
he poiicy Of the Cabinet leans toward
sacrifice Of longtime German obli-
cations in favor OF quicker payments