The New York herald., 1922-08-05
PREM|ERS COUNCIL
MAY LAUNCH FIGHT
TO CUT ARMAMENT
Beginning OF Discussion Is
Hoped For by British
Officials.
BORAH SPEECH REACTS
London Realizes France
Will Hardly Agree to
Heavy Reduction Now.
HOPE TO SUPPORT MARK
France Not Expected to Act
Precipitately Against Ger
many To-day.
HOPE TO SUPPORT MARK
Special Gable to THE New YORK HERALD.
Copyright, 1879, by THE NEW YosK HERALD

Spcctdt Cd06 10 JHB NEW fORh lfBRALp.
Copyright, 19as, by THE New YosK HERALD.
New York Herald Bureau.
London. Aug. A.
Everything is being done to make
the conference here Monday between
Premier Lloyd George and Premier
Poincare, in which representatives of
other European States also will par
ticipate the most important since the
Versailles conference. Ambassador
Harvey said over the telephone from
his retreat in the Scotch highlands to-
day that he might come TO London
Monday, and Downing Street hopes
that he will be present as an official
observer.
Downing Street is not so optimistic
as to believe that from this confer
ence can come the state of land and
water disarmament mentioned by Sen
ator Borah to-day, but Senator Borah's
speech has awakened a substantial
echo in official quarters here. IL is
likely now that at least the beginning
oil a disarmament discussion win be
inaugurated here, though it Is fully
realized that NJ. Poincare and other
French statesmen can hardly agree to
any substantial reductions in French
military expenditure at this juncture.
The best formal result it is hoped
to attain is that France and Great
Britain can find common ground upon
which the collapse Of the mark can
be checked. 1t is not believed here
that M. Poinc2re will take precipitate
action against Germany tomorrow,
particularly in view of the report that
Paris has asked the British Foreign
Office for suggestions relative to the
German note, stating that Germany
cannot continue gold mark payments.
The Foreign Office. however, has re-
Trained from giving any advice TO the
Quai D'Orsay on this subject.
Lord curzon, Foreign Minister. has
completely recovered and. it is reported,
will be back at his post in the Foreign
office Monday. lie may even cross the
Channel with VI. Poincare and the
French official party OIL Sunday.
hCDI NOtG lot htnuGEss
II is now more and more evident that
the Balfour note was largely dictated
TO meet domestic political exigcncies. AS
preparations are being made for the
coming elections in England. Both the
Liberals and Conservatives held inn
portant conferences to-day. reviewing
the party strength and other organiza-
ton problems.
The Governments position through the
Balfour note and Mr.. Lloyd Georges
speech last night was strengthened along
the lines of refusing to do anything TO
Ilacc further burdens ON the British tax
payer. The suggestion OF accepting the
practically hopeless German G bonds
was again mentioned. but finds little
favor in official quarters as being too
obvious a method Of sacrifice.
Strangely enough. the Westminster
Gazette this morning advocated a pro-
gram for which IL has all along chded
the French chauvinists for espousing--
the bankruptcy and dismembernlent OF
Germany. In n front page editorial Il
says that there might he worse things
than German bankruptcy and a start
with a clean slate. 1t accompanies
this by approving the project Of sep
arating Bavaria from Prussia. This
cannot be considered TO be either tho
e
II Is significant as It Is the first time
any influential organ has openly adj
vocated such a program.
The discussion continues 10 caiu
strength here regarding n possibls
Washington conference to discuss ali
war debts. including those owed the
United states. There still is a section
OF British politicians and economists
who decline TO admit that Great Brit
M a -vst
spective OF whether her debtors paw her.
Borah Talk Interests London.
Senator Borahs dcclara tfon that Eu-
rope must reduce navics and land arma-
ments before she can expect any indul-
eence from tho United States was given
great prominence here this morning.
inc truth is that Great Britain is Sc
riously disturbed by the prospect OF
having to pay America in full and there
is much Kicking against what is thought
70 pc tnc nigh rate OF interest that is to
be charged. per cent.
Now that the problem OF repavino il
actually before the Cabinet, Ministers
arc beginning to realize what n All ex-
actly means. IL will mean nrolonration
or the present high rate of income tax
N ENGLAND. which will kin the crv
Lioyd George hopes to raise al the next
we reduced Your income tax
ana will reduce Ii yet again \ tn
puplc here Is being assured t.,at snns
may yet be extracted from Gcrmany and
france, particularly from Franc Il
Franco taxes herself proportionatniy !,
Wnat Eng'ishmcn bear though manv
oon hesitate TO say that this il anotber
~ VIZ ueiuslons which people have boon
brought to believe ever since tho ~.
endr !. ''e Wat
roi eisn traders. however. seekin. !,
market for Germany and wishing ~ &C.
Continued on Page Five.
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