The New York herald., 1922-08-09
ALLIES TO MODIFY
POINCARE'S SCHEME
See Embarrassment Without
Gain in Proposed Control
Of German Finances.
BELGIUM BACKS FRANCE
Experts Reject Customs Bar
rier and Seizure Of Mines
and Forests.
BELGIUM BACKS FRANCE

LONDON, Aug. (Associated Press
The proposal made by Premier
Poincare of France for control of Ger
many's finances in return for a mora
torium for Germany seems not to
| have found favor with the British
and Italian financial experts, mainly
because they foresee that the plan
would involve the Allies in embarrass-
/ ing political entanglements which
would not be justified by what might
be gainend financially.
This developed to-day during the
discussion of the Poincare plan by the
financial experts, when there were
several animated tits.
| There was no meeting to-day of the
conference proper, the time having
been devoted entirely to consideration
of the French proposal by the COM
mittee of experts, who will reassemble
Tomorrow morning, when they hope
/ to draft their report for submission
TO the conference in the afternoon.
Vhe Belgian representative tonight
was preparing the draft of a report
for submission to the committee.
i
French Plan Called Political.
NJ Poincares proposal appears to
have been taken by Premier Lloyd
George. VI. Theungs of Belgium and
Signor Sohanzer of Italy as an ex-
pedient to gain time for discussion
among themselves of other possibilities
of settlement OF the situation. NJ.
Poincare did not insist upon his proposal
as being final but as something upon
| which to build or TO reject. and it now
4 looks as IL considerable modification is
necessary II the proposal is ever adopted.
After the explanations of NJ De Las
| teyrie, French Finance Minister, to the
experts, Sir Robert S. Horne, the Brit
ish Chancellor OF the Excheqaer IS said
to have described the proposal as form
i ing political question, rather than
! financial question.
During the examination of the plan b.
/ the committee of experts, II Is said -
have been developed that IL applied sue
cessfully the plan would yield about S0O.-
| 900. 900 gold marks yearly.
The principal objection advanced by
/ the British experts was that the Allies
would become responsible for German
| finance and would entangle themselves
in the economic and political life OF nu-
merous alien peoples.
Among the new points examined into
I to-day were the possibility OF estaplish-
/ ing customs barriers on the eastern
boundary OF German occupied territory
whether 1t would be practical TO place
tax upon everything entering or leaving
the Ruhr region the question of seizure
I of state owned mines, forests and do
mains on the left bank of the Rhine, and
also whether the 20 per cent. of GUS
toms duties provided for In the agree
ment of May, 1921. which now goes TO
the allied treasures. could instead be
paid to the reparations commission. thus
forming part OF the reparations fund.
The discussions of to-day were mainly
confined TO the French. British and Bel
gian delegates. the Italians having taken
little part in IL. The Belgians strongly
supported the French point of view in
/ opposition TO the British, while the
| Italians are leaning toward the British
position. which appears to be that II
may easily be possible to resort to meas
ures of such stringency as TO defeat
the object in view, while running the
risk of ultimately disorganizng Ger
many's economic life.
/ NJ De Lasteyrie. France, replying to
| these objections, emphasized that the
proposed measures were Of technical
economic character and not military.
To Modify Poincare's Proposals.
! II seems to be apparent that there
will be no unanimity with regard to NJ.
\ Poincare's proposals. a majority Of the
/ committee of experts was against the
proposed customs barrier or the imposi-
4 tion OF taxation In the occupied area,
7 while the proposal to seize the mines
and forests was rejected. In this con-
nection. however. 1t was decided to study
/ the possibility of n system OF guarantees
assuring to the allies a supply OF coal
\ and wood
The proposal to ask Germany to con-
sent to concede to the allies share in
industrial concerns also was rejected. A
majority Of the committee seemed to
take the view enunciated by Signor
| Schanzer. the Italian Foreign Minister,
that there was n contradiction In grant
! ing a moratorium and at the same time
taking over German property. The
| opinion generally prevailed that the pro-
/ posed steps now were needed less, In
view of the guarantees lately imposed
4 by the committee on guarantees after it's
visit TO Berlin.
IL seems evident that vi. Poincare's
proposals, II they are ever adopted. win
be considerably modified. The French
/ Premier Is considered TO have foresecn
4 this when he admitted that the pro
posals were of an elastic character.
The principal delegates already have
begun talking among themselves over
notifications. NJ. Poincare had a long
conversation with Mr.. Lloyd George
during the day. and tonight after the
adjournment OF the experts committee
| Signor Schanzer and NJ. Theunys and
NJ. Jaspar. the Belgian representatives.
visited Downing street and conferred
with Mr.. Lloyd George. M. Poincare
also had talk with NJ. Theunys
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