The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1922-08-28
Guarantees
Rejected
by France
Action Against Germany
Looms Following Failure Of
Reparaiions TO Reach Ac.
cepiable Compromise.
Moratorium Is Expected

Paris Aug. 2.-(By A. Pl-Pre-
mier Poineare has rejected the
eleventh hour guarantee offered by
the German government and indie
pendent measures by France against
Germany seemed assured after iail-
ufc oi the reparatious commission to
obtain in Berlin the basis OF a com.
promise acceptable 10 France,
In well informed French circles
II i considered reasonably certain
ihs, the fcparatious commission viii
grant a moratorium for the rest oi
pihc year, with the final German pro-
posals as an additional guarantee.
The German proposals. handed TO
the reparations commission just be-
fore il left for Paris. provided iof a
contract between the German gov
oramcnt and the biggest German in
duslrialis,s. including Hugo stinne2,
for delivery during the period OF
moratorium OF products OF the Ruhr
mines and wood from the states Tor
{ rst. Germany would guarantee the
ull delivery, and penalties would be
enforced against the industrialists IN
the event the schedule was not lived
up TO. -=..
Poincare Rejects Plan
Details OF the scheme were to be
submitted by Germany next week.
but the French premier rejected the
plan after a conference with NJ. Du-
bois and NJ. Mauelere. The premier's
opposition is said to be due 10 the
fact that he believes the scheme
made the industrialists more import
ant than the government, and since
the business party in Germany is in
position TO dictate 10 the goverii-
ment, refusal TO carry out the con-
tract would leave the German gov
ernment powcrless to act, and France
would be as bad off as before.
British optimism which continued
even up to this afternoon, has given
way to frank gloom over the situa-
ton. The British think the proposals
fairly meet M. Poincare's demand
for the German mines and forests by
actually giving France the products
OF these natural resources without
handing the district over to political
control. The district in control OF
France, il is contended by the Brit
ish. would only add chaos to the al
ready critical situation.
- Says Germany Sincere.
Sir John Bradbury, just before the
meeting OF the reparations COM
mission, told the Associated Press
he was convinced that Germany was
really trying TO meet the French
view, and he urged that the French
government meet Germany hall way.
He informed the commission that
the German financial situation was
desperate and that social disorder in
its entirety in Germany was threat
ened.
The French reported that they
were amazed to see great evidences
of prosperity in Germany, and de-
clared that large number OF Ger
mans who apparently had discarded
their own currency, were using dol
lars instead.
The reparations commission held
two-hours session to hear these re-
ports, but il is not likely that any
decision will be taken for several
nays.
Sir John Bradbury recommended
10 the commission that moratorium
in cash payments should be granted
until Germany stabilized the mark
and balanced its budget. But the
French solidly opposed this recon-
mendation.
Would Act as Bridge.
The British view is that al best a
moratorium can only act as bridge
Until the whole question is again dis
cussed at the projected November
conference on interallied debts and
indcmnitics.
a Such a meeting is imperative, in
the view of Sir John and the other
British officials.
Despite the gloom in British quar-
ters the British representatives are
making every effort to avoid di-
rect vote by the commission, be-
cause they feel that occupation OF the
Ruhr or any other repressive meas
ures against Germany at this time
would only hasten the impending
collapse OF Germany and produce no
cash for France.
On the other hand. the French
government is convinced that Ger
many can find iS0000000 gold marks
for the August, September and Oe-
toher payments. by that time, OF.
iieials believe. another allied confer
euee Will have to discuss new gen.
cral reparations agreement
II the commission grants a mora
forum with the guarantees Just OF
tered. France viii reject the decision
and assume liberty OF action. i, Is
authorlsauyc'y declared II the com-
mission refuses a moratorium.
France vii also ast bur in a differ
snt manner The commission viii
meet again SUNDAY