The New York herald., 1922-12-16
PREMIERS TO ACT
Proposal to Be Rushed
Before Conference in
Paris Next Month
for Appro val.
L. S. NAMES TERMS
Will Not Recognize League.
Discuss Own Loans or
Enter Any Alliances.
GERMANY WILL CONSENT
Details of Proposal Withheld
Until Harvey Brings Data
From Europe.
WILL CONSENT
ny LOUIS sEIBOLp.
! Special Dispatch to THE NEw York IIrsALn.
| New York Herald Bureau
Washington. ID. c.. Dec. 10. 4

Special Dispatch to THE NEw York ExsALn-
New York Herald Bureau.
Washington. ID. G.. Dec. 10.
The attitude and activities Of
American Government officials to-
day reflected more pronounced op-
timism regarding international prob
lens than at any time since the
armistice, four years ago.
There is complete justification for
the statement that the United States
las already formulated a plan for
removing the chief causes for irrita-
tion and international turmoil due
to the conflict Of view between tho
French and German governments
over reparations and indemnities.
The Cabinet approved the plan to-
day.
A group OF American bankers,
whose representative have been in
consultation with the President and
Secretary Hughes. have already
adopted definite but tentative plans
for floating loan 70 save Germany
from further decentralization and put
her on her feet. This loan, IL is gen.
orally believed, will be for $780,
100000. or as much as may be nee
essary to relieve the economic dim
culties of Germany, permit it to meet
revised obligations and put an end
to the disastrous consequences at
once menacing the peace and inter-
fering with the normal and orderly
trade processes OF the world.
French Attitude Uncertain.
The American Government has in
dicated its willingness to approve the
terms of the loan proposed by the
banking group and is ready to guaran-
tee it under certain conditions, which
both Germany and France must acs
cept. The only uncertain element III
the equation is the decision OF tho
French Government on the question
of reducing its claims agains: Ger
many to a figure which, in the judG-
ment Of Great Britain and the United
States. can be llquidated without com.
pletely destroying Germany.
The French decision VIII be de-
termlned by the conferences between
the executive aud parliamentary
branches OF the French Government
II France displays a conciliatory at.
tltude toward tine American conditions
which will bc restricted entirely tc
the reparatiors issues and exclude dis
cussion OF war debts 10 this country
American officials believe the mosi
important obstacle in the way of in
ternational. political and economic
stability will be removed before many
weeks
The formula worked out by the
United States Government for the sot.
tiement Of the F'ranco-German repara-
ions dispute is described as simple,
direct and wholly IN accord with The
policy OF the United states 10 re.
train from foreign entanglements. III
other words, the proposal which the
United States will make to the French
and German Governments will relate
solely 20 the financial issue. whicl
directly concerns France and Germany
and which indirectly affects the vel
fare OF every country in the world.
All conditions contingent upon tbs
move 20 bring peace and prosperity to
Europe VIII be confined by the United
States within the lines indicated. Ger
many, which Is admitted TO be con-
fronted by the greatest crisis in iu
history, viii undoubtedly accept thess
The conferences betweea
Secretary Hughes and Herr Weidfeidi.
a.. f,.-,.a,, Ayr,haseador have already
satisfied American officials on thai
point.
Hone for French Assent.
The success Of the peace venture
therefore. turns squarely and solely
on the decision Of France. An agree
ment between the Poincare Govern.
nent and the French Parliament %
accept the American proposal viii un.
put an end TO the dis
agreements which have developed AZ
every vital stage in the rcparationi
dispute. American officials believe,
and have gratifying reason to hope
that such an agreement will bs
reached, although they are prepared
for long palavor between the Foin
care Ministry and it's critics both y
and out OF the Government
In the end they believe that al ss'
sential differences will be reconciled
and that definite and permanent
policy. susceptible OF performance OK
a reasonably satisfactory basis. VIII
be agreed on.