The New York herald., 1922-07-23
German Acceptance of Allied
Control May Win Delay Of
Thirty Months.
SIX WEEKS TEST ASKED
Paris Wants Demonstration of
Good Faith Before Final
Decision.

Special Gable to TIM NEw York HERALD.
Copyright. 1929, by THE New YoRx HmALp.
New York Herald Bureau.
Paris. July &c.
Special Cable to THE New York HERALp..
Copyright, 1929, by THE New York HERALD.
New York Herald Bureau,
. Pnris. July 81.
France, now that Germany has ac-
cepted the rigid terms of financial con-
troll imposed by the guarantees COM
mittee Of the Preparations Commission.
is disposed to put the good faith Of the
Berlin Government to test of not
more than six weeks, which would
constitute moratorium on cash pay
ments.
If. however. the plans of allied con-
troll prove successful, the moratorium
period on cash payments. in all prob
ability, would be extended to the two
and a half years asked by Germany.
The French point of view is that II
the long moratorium be granted i'm
mediately. the efficacy of the French
plan, which is being elaborated daily
by French officials, would be greatly
lessened, as once the new schedule
is approved by the Preparations Com
mission 1t could be altered only with
diffiqIlty Premier Poincare and FL
nance Minister Charles de Lasteyrie
are formulating the French plans.
Germany's proof OF good faith dur
ing the trial period would be used as
an additional argument for an inter-
national conference. In the light Of
such a plan NJ. Poincare's insistonce
that Germany's responsibility for her
present condition be admitted by the
Reparations Commission takes on new
significance. as, according to the French
view. permission to apply penalties.
whether economic or financial, would
hold the German obstructionists In
check. even IL It never becomes neces-
sary for the Allies to act. individually
or collectively.
Frances New s-osition.
This marks a departure from the
negative reparation policy for which
France has been censured on both sides
of the Atlantic. as being inimlcal to
European reconstruction. Thus the
forthcomingg conference between Pre-
miers Lloyd George and Poincare will
find the latter armed for the first time
with definite plan for handling the
reparation problem; and this, according
TO wcll informed persons here. is the
reason for M. Poincare's refusal to con-
sent to longer moratorium, SO far as
cash payments are concerned.
It Is believed that n the shorter
period Is accepted tentatively way
may be found to reconcile Frances need
OF cash from Germany with Mr.. Lloyd
Georges idea of compensating for an
annulment OF the Franco British debt
by reducing the total reparation bill.
With this accomplished the interna-
tonal bankers committee will be re-
convened and upon new evidence of a
spirit OF cooperation at last in Europe
an international loan project for Ger
many will be launched.
: Up to this point the French expcct
little dissension in the Preparations
commission; and 1t is probable chat a
compromise will be feacned by the COM
mission agreeing to delay final decision
on Germanys demand until NJ Poincare
has had an opportunity to work out a
scheme with Mr.. Lloyd George.
Proceeds of Loan.
The greatest divergence is foreseen.
however. over the question how the
proceeds OF any International loan are
to be distributed. According to the
French experts, they could be guaran-
teed by the Preparations Commission
releasing it's lien on German State prop
critics. even customs. as provided In a
decision of the commission, thus to ia
cilitatc the financial restoration OF Aug
tria.
The commission OF guarantees would
be retained In Berlin as virtual execu-
tors for the bankers behind the loan.
The French consider that devoting the
proceeds Of the loan solely to Germany
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