The New York herald., 1922-08-07
Supervision Of Customs and
Lien on Tariff Receipts
Suggested.
MORATORIUM IS POSSIBLE
Success of Council in Doubt as
Statesmen of Four Pow
ers Gather.

LONDON, Aug. 6 (Associated Press).-
Allied statesmen are gathering in Lon
don tonight for the opening Tomorrow
of what seems generally regarded as
the most momentous conference since
peace was concluded.
Little hope seems to be entertained
here that the conference will be a
successful one, although 1t is fully
recognized that in view Of the swift
fall in the value of the mark. which
Nthreatens to bring Germany in the
wake of Austria and Russia financially,
situation has been reached In which
halfway measures no longer will be Of
avail.
The immediate concern of the con-
ference is the question OF reparations
and Germany's request for mora
forum, but since the delivery last week
OF the note Of the Earl Of Balfour 1t is
assumed that the question Of interallied
Indebtedness cannot be excluded from
the discussions, especially as Raymond
, Poincare. the French Prime Minister,
is credited with bringing to London a
plan for the extinction of the German
"C' reparat.ons bonds in exchange for
cancellation Of the French debt to
Great Britain.
This plan meets with little sympathy
III England, because It is contended these
German bonds being admittedly worth
less, Great Britain would gain nothing.
but. by forgiving the French debt,
would lose the last weapon she possessea
for bringins pressure to bear upon
france on. the question OF armaments
or on any policy In which France nigh.
iun counter 10 British ideas.
The situation Is further complicated
by the ultimatum France delivered to
Germany concerning Germany's pay
ncnts on account of private pre-war
debts and the measures which France
already has ordered taken In this con-
lection.
1.-THE Preparations Commission in
Paris has voted 3 to / rejecting the
British plan for Ave months mora
torium for Germany and the acceptance
by France OF 100000 on August Is as
the installment on private pre-war debts
instead of the f2.ooo.000 uue.]
Poincare's Reported Plan.
The correspondent of the Associated
Press who accompanied the French
delegation from Paris to London says
lie learned that NJ. Poincare has a
definite program calling for far wider
financial supervision over Germany than
that recently negotiated by the COM
,nittee on guarantees and approved by
the Preparations Commission and the
Wirth Cabinet.
Under this program German customs
would be placed under the inspection OF
representatives OF the Allies. without
these representatives being receiving Of
ticers or directly handling any money.
The plan would provide that new issues
Of paper money must be authorized by
the Allies. who also would have the final
word OF approval on the round sum of
Germany's appropriations.
n. Poincare's plan, the correspondent
learned. Is the arrest OF imitation, a
cneck on expenditures and to have GER
tain lien on tariff receipts. Besides this,
the French proposals will include par
ticipation In German industry and trans
portation. especially on State owned
properties.
n Mr.. Lloyd George. signor schanzcr
and M. Jaspar accept this plan. or one
equally radical In establishing effective
.
enforce It resolutely then NJ. Poincare, II
Is understood, will be prepared to agree
upon a rather short moratorium to give
time TO put the measures into operation
and to-see how Germany receives and
executes. the allied plan.
wants Liberty Of Action.
NJ. Poincare comes to London, II 10
said, prepared. IL strong united effort
-
having liberty OF action under the
French Interpretation OF the Versailles
treaty. This would require revision OF
one Of the articles OF the interaliied
accord OF London In May. 1921. In which
independent action was excluded. but as
Germany has not executed her part OF
that project of settlement It Is held that
the slenatorles are released or are in
the process OF being released. The
French Cabinet on July 81 and again on
August 3. II was learned by the corre-
spondent to-day. gave NJ. Poincare the
fullest authority TO affirm the right OF
each ally TO act separately against Ger
many
NJ. Poincare's personal attitude ap-
pears to be that of calm determination.
believing he Is supported by powerful
majortIes in the Chamber and the Sem
ste and by quite nine -tenths OF tho people
as being willing to dissolve the partner
ship of the Allies " they are indIsposed
10 incorporate his plan in the measures
- check what he considers the drifting
sfvuation In Germany.
Great Britain will be represented at
tho conference by Pramier Lloyd
George, Austen Chamberlain, Earl
Curzon, sir Robert s. Horne, Chancel-
lor Of the Exchequer. and sir Laming
WorthIngton- Evans. Secretary for War.
Thn s,~iprtnaf .,foftfn. dain~.t.u ..,iir