The New York herald., 1922-04-16
SWITCHES
PREPARATION STAND
With Belgium Agrees on -Four
Years Moratorium to.
Germany.
FOR INTERNATIONAL LOAN
Commissions Note Forced on
France the Alternative Of
Military Action.

Special Gable to THE NEW YORK HEnALp.
Copyright, 1879. by THE New York HERALD
GENOA, April 15.-Whereas yester-
day the reparations question could
only be mentioned under the penalty
of France leaving the conference, to-
day France, Germany and Belgium
show solid front for a four years
moratorium 10 Germany and an In
ternational loan.
Probably more significant though
less dramatic than the two days
wrangle between the allied leaders and
the Soviet delegates is this sudden
change in the reparations situation.
The subcommittee of the Reparations
Commission is meeting here under the
chairmansEip Of NJ. Delacroix OF Bel
Sium. The answer of the Preparations
Commission to Germany's recent re-
fusal to reform her budget was note
leaving the door open for negotiations.
These negotiations are now being held
and they have promptly turned into a
discussion OF u moratorium for Ger
many and an international loan. IL 's
not the Genos conference which Is rais-
ing the forbidden topic. II is the Rep
arations Commission itself.
1t Is expected that the British will
oppose these plans. They will urge that
a moratorium and loan are prematu.s
before peace 1t reests b;isked in Europe
and that the bankers OF the world will
not open their wallets for Europe
which has not disarmed and guaran-
teed peace. In answer TO this view the
French and Belgians declare that they
believe that il England refuses TO assist
- me loan they will be able to float
on In America without England.
DIR. Rathenau Warns.
DIR. Walter Rathenau German For
eign Minister. tonight made a plea for
the loan in an informal address before a
few invited Journalists He was care
full to refrain from expressing many
hopes of action at Genoa. but issued a
warning that time lost now was time
lost eternally.
He summarized the situation in
Europe by comparing the actual losses
caused BY the war with the much
greater paralysis which has followed II.
Russia" he said has only per cent.
OF the worlds business and her devas-
tated area amounts TO only a small frac-
OF her total area. Her restoration alone
won't restore normal conditions Then
why does not the economic machine
function? The same answer will come
from many sides. Moral and mental
questions and problems arc hampering
the process. The world Is full OF wide
spread errors and these are to blame"
He mentioned these errors as being.
first an absence of peace and a want
OF disarmament, and perhaps the
greatest error OF ALL" he added. lis our
mutual Indebtedness Every country
except America. which has only debit
ors, and Germany. which has only
creditors. Is both debtor and credi-
tor and one OF the things which IL
holding Europe back Is the doubt
whether the debt will be paid Unless
this ring Of debts Is broken the world
VIII 20 on as now with business at a
standstill The problem viii only be
solved when the world finds that II il
rot abatements and reparations which
are at the root Of the difficulty but the
need for concerted action"
Conference to Clear the View.
DR.. Rathenau declared that the
Genoa conference was worthwhile be-
cause Europe had reappeared and the
nations were meeting together not as
Allies or victors or vanquished THE
conference may not lead TO decisions
but II viii clear the view" he said
il was possible for the questions OF a
German moratorium and international
loan suddenly 20 find their way into the
center of the picture at Genoa so unex-
pectedly because there havo been two
centers Of European development. the
other one being in Paris. when the Ger.
man delegation came nero the vortex or
the whole interest lay in what fate
awaited Gcrmany's refusal ~ the latest
demands Of the Reparations Commits.
sion and not In what would happen
here.
Dr. Carl Bergman. who brought the
note from Paris was told by the French
that Gcrmany's answer made one OF
two courses mperative-either France
and Germany must agree on loan or
France must apply military sanctions.
When France chose TO consider an
agreement a decision was taken which
altered the entire outlook for the Genoa
Conference.