New-York tribune., 1922-12-10
BOnarLaw Tells Premiers
Nation Will Reconsider
Refusal If Settlement
Proves Satisfactory
Poincare Expected
To Moderate Stand
Tone of Optimism Marks
Conference; France TO
Reply Formally To-day

LONDON, Dec. 0 (By The Asso-
ciated Press).-Premier Bonar Law
caused a sensation at the second
session Of the Allied premiers this
afternoon, when, in the course Of
his reply 70 NJ. Poincare's mora
torium plan, he gave clear indica'
ton that the British government
would be quite willing 70 reconside,
the question Of cancellation Of ths
French debt, provided such a stel
was made possible by a reparationf
settlement satisfactory 70 Gres;
Britain.
Mr.. Bonar Law previously had in
timated that Americas insistenee
on the payment Of the British dsbi
made Il very difficult for England
10 discuss remission Of tho French
wa debt
The British Prime Minister'S dec
larations at the afternoon meeting
greatly encouraged Premier Poin.
care, who was extremely pessimistic
early in the day over the outcome Of
the conversations.
Words Increase Hope Of Accord
While the Premiers are FAR from a.
accord as yet, Il was said BY The French
delegation this evening that Mr.. Bonaf
Laws pronouncements on the debts hsc
made an agreement much more likely.
Premier Bonar Law began by say
ing the Balfour note no longer existsc
for the British government and that Ne
was free TO consider the whole cues
tion.
IL am prepared 10 reconsider che
question Of cancellation OF debts he
went on, III such cancellation would
insure a settlement satisfactory 10 the
British government"
NJ. Poincare. although rcserving he
! formal reply TO the new suggestion un
I'll tomorrow, expressed deep pleasure
az the British attitude.
The British Prime Minister briefly
outlined the kind Of settlement he de-.
slred--a moratorium sufficient for Ger.
many TO ro-establish her finances and
credit and stabilize the mark, no mill.
tary action Of any character By the
French and reduction Of the indem'
nifty 20 between 30,000,000,0 900 and to,'
600 900 gold marks.
This statement Is expected 70 have
the effect Of making NJ. poineare more
conciliatory and less inclined 70 talk
about military measures, since ho him
self believes that military measures
would not prove very effective. An
other new element which may help the
conference to an agreement developed
tonight when il became known that
Karl Bergman, German PREPARATIONS
chief, had arrived In London with
Chancellor Cuno's new scheme for
settlement.
The Belgian plan, presented by Pre-
mier Theunis this afternoon, calls foi
two-year moratorium for Germany
and a loan 10 be participated IN by al
nations at the rate Of 5,000,000000
gold marks year for seven years,
making a total Of 35,000,0 900, 900. This
should represent the total repafations
indemnity. Tho loan will be guaran-
teed by the wealth Of the German 70.
public.
According TO this plan tho German
debt would be reduced 10 between thif.
ty and forty billion gold marks erd
France must abandon all idea Of mill
tary or economic pressure on Germany
The Germans would be required 20 ef'
feet igid financial reforms, including
balancing the budget and stabilizing
the marx. Part Of this loan would b.
handed over TO Germany for that pur'
pose.
The Belgians propose postponsmert
Of the Brussels conference until tne
end Of January or the middle u Feb.
ruary. Their plan probably will BE-
II Is understood that the king will
receive the four prcmicrs and -four
finance ministers tomorrow. he Il
greatly interested IN the European
economic problem and desires an Al.
lied agreement as soon as possible.
NJ. Polneare js understood % have
raid that France would consent 20 .
moratorium Of two years for Germany
II eertsin economic guarantees aeeom-
panied it
France Would Control RhlneIand
These guarantees, briefly, were de
economic control Of the Rhineland and
partial occupation Of the Ruhr district
with about one division Of troops 10
collect the customs Of the coal output
Il Is understood. ". Poinearo pointed
out, that these guarantees we're In no
way TO be regarded as military action
against Germany, but simply 90 tempo.
rary economic measures 10 insure car.
rying out the necessary financial re-
forms during the life Of the moFatc'
rum.
A statement OF the position 70 Ds
taken by Italy was eagerly awaited
Premier Mussolini. arriving here Last
night, 80 FAR has given no intimation
Of his views on the reparatlons cues
ton
The possibility that japan and DE
United States may be admitted 70 the
cor ference Of the British. French, Be-
gian and Italian premiers here this
week end Is discussed to-day BY fhe
diplomatic CORE pondout Of rIhe
Daily Telegraph"
The writer says that Japan has o.
rcnoy formally requested admission
and that, although America has ne
made the same request, "this ises nee.