The New York herald., 1922-07-25
BRITAIN Will INSIST
FRANCE CUT ARMY
Lloyd George Prepared to Ex-
act Concession for Any
He May Make.
HOPES TO WIN POINT
Official London Predicts Full
Agreement at Meeting Of
Premiers.
HOPES TO WIN POINT

Special Ca5le to THE NEW YORK HmALp.
Copyright, 1858. by THE New YoRK HnnALD.
New York Herald Bureau.
London. July a..
England win make no sacrifices for
the sake Of France In the matter Of
reparations and debt cancellation un-
less the latter shows desire to make
her political attitude toward Germany
and the rest Of the world accord more
nearly with the British desire to see
trade revived and political stability
restored.
Reports from Paris indicate that
Premier Poincare expects the question
Of cancellation Of the French debt to
Britain to come up. at his conference
with Premier Lloyd George next week,
but it is believed that any concessions
Britain makes in this direction will be
with the expectation of concessions
from France. and among these will be
the acceptance by the latter Of the
principle of land disarmament.
Mr.. Lloyd George will not neglect the
will not be bound by the Cannes reso-
luton this times and the fall of the
franc. in sympathy with the mark. in
the last two weeks Is believed to have
put French opinion in better shape to
consider reduction OF her armament
costs.
Fertile Field for Lloyd George.
In fact. the. conference promises to
provide field for all that Mr. Lloyd
George originally hoped might be accom-
plished at Genoa. And throughout the
maneuvers he will proceed upon the
theory that however close the political
entente may be between France and
England In Europe, the economic entente
between the two greatest creditor ma
tions In the world Is even stronger He
will try to persuade France to join that
entente, one Of the principles Of which
is recognized to be the reduction of
armament costs, with an agreement
making the use OF armament unlikely.
Downing Street is highly elated over
Premier Poincare's evident desire to
offer constructive suggestions for the So
luton OF the reparation and interallied
debt, tangle. 1t is admitted that these
suggestions may be very far from what
Great Britain can accept. but now that
the French policy against any changes
In the economic aspect of the Treaty OF
Versailles has been abandoned. Downing
Street Is confident an agreement can be
reached. There has been no change in
the British policy. In general it Is any
thing for the settlement of Europe $
chaos"
watching French Debt Mission.
Meanwhile Downing Street is listening
closely for the results of NJ Parmen-
tiers mission to Washington on the
Franco debt. II remains the
British determination not to say single
word or offer hint that Great Britain
would like to have her debts to Amer
lea either cancelled or reduced. She Is
eager TO learn what terms France will
get, however. because It Is generally
felt here that the terms laid down by
Congress are not quite in keeping with
the cheaper money available since the
debt funding commission was author
ICED.
One flnancier remarked to-day that
the az per cent. interest plus sinking
fund on twenty-five year basis meant
per cent. annual charge. while the
Bank Of England's discount rate is only
3 per cent. 1t Is admitted here that
British taxation must be reduced instead
OF increased, II advantage is to be taken
- ID.