Evening star., 1922-06-08
All Idea of Advance Given Up.
Committee Finds Una
nimity Lacking.
REPORT TO SHOW BASIS
OF CREDIT STILL VAGUE
Committee Looks Upon Reply of
Reparations Committee as In
dicating Non Incorporation.

BY the Associated Press.
PARIS, June S-All idea of an in
ternational loan to Germany has been
given up by the committee of bank
ers, and they are meeting today to
agree upon the form of their report
to this effect which will be submit
ted to the reparations commission.
The work of formulating the re-
port, it is stated, may take two or
three sittings.
The prevailing conviction among
the members of the bankers commit
tee Is that two things are necessary
to loan: First, there must be
unanimity among the lenders. which
were to include all the countries rep
resented on the reparations commits
sion: second. that the credit basis
of Germany must be outlined clearly.
The bankers look upon the repara-
tions commissions reply to their re-
cent note an official declaration
that unanimity does not exist among
the prospective lenders, and there
fore feel that plans for loan can
not be advised.
French Prepared to Act.
Premier Poincare told the senate
foreign affairs commission yesterday
that he hoped the negotiations would
continue. although he hardly expect
ed any early tangible results.
In the meantime. he said French
industry, while awaiting German pay
mcnts in cash. which could become
important only through the aid of
loan. must adjust itself to payments
in goods.
P.re,tipp nreyjn,,S decla ra tioDs in
the chamber of deputies as to
Frances determination to act alone II.
necessary in case of Germany's de-
fault in reparations. the premier SAID
that regardless of whether the need
for imposing penalties upon Germany
arose or not France had studied and
prepared plans for various sorts of
penalties. and was ready for the day
when the reparations commission
might declare Germany in default.
Inquiry of Bnnkers-
A communication issued by the
bankers committee through the
reparations commission gives not only
the text Of the commissions decision,
but the text of the question that the
bankers put. the exact wording OF
which has been matter of specula-
tion. The communication reads:
"On Thursday, June 1. the loan
committee requested its president to
put the following question to the
reparations commission:
"'Acting on your instructions the
committee has compared the study of
the subject of the foreign loan in
trusted to it by the commission. Be
fore proceeding further. however. the
committee considers 1t necessary to
ask the roparations commission
whether the words regard being had
to It's obligations under the treaty of
Versailles. and in particular. under
the schedule of payments of May 5,
1921" are to be interpreted as mean
ing that for the purpose of its de-
liberations the committee must treat
the payments prescribed by the sched-
ule of payments as an unalterable
obligation subject only to the power
of the reparations commission from
time to time in the future to vary
them in accordance with the provi-
sions of article 234 of the treaty. or
whether without. of course. in any
way engaging the responsibility of
the commission) they are at liberty
to examine the possibilities of solu-
tions involving notifications of these
arrangements"
Neply Of COmmission.
ION Wednesday. June Z. the repara-
tions commission addressed the fol-
lowing reply to the loan committee:
lin reply to the question address,
ed orally on behalf of the loan COM
mission by its president, the repara-
tionS commission mas the honor 70
inform the committee that at an Of
fetal meeting held this morning it
took the following resolution: The
commission intends that nothing IN
the terms of reference should be held
to preclude the committee from ex-
amining any of the conditions which
may be necessary for raising an ex-
ternal~ loan by Germany. including
such as relate to the general re-es-
tablishment of her external credit.
Indeed. any suggestion which the
committee may be able to offer from
this point of view. without, of course,
engaging the responsibility of the
commission. could rot tail to be of the
greatest value. This decision of the
commission was taken by the ma
jority. the British, Italian and Bel
gian delegates voting in favor OF 1t
and the French delegate against IT,.
The American unofficial delegate ex-
pressed his personal agreement with
the majority"