Evening star., 1922-06-11
Morgan Says Lack of Allied
Unanimity HaIts U. S.
Investors.
PREPARATIONS MIDDLE
ALSO HELD OBSTACLE
American Fhancier Denies French
Charge That Committee Aimed
at Cutting Berlin Debt.
By the Associated Press.

IANlo, June lU.-Complete agree
ment among the allies on repara-
tions, solvent Germany and settle
ment once for all of the full repara-
tons debt, the international bank
ers committee finds in its repori
10 the reparations commission. are
essential to the success of an inter
national loan to Germany.
in view of the fact that these con-
dltions are lacking and because of
the objections of France to a revi-
sion of the total reparations due
from Germany, the committee has
decided to suspend its study of the
question. though confident that a
substantial loan to Germany could
be floated If these conditions were
fulfilled, and 1t holds itself ready
to resume consideration of the
question on the unanimous invitation
of the reparations committee.
The committee recognizes that there
is a certain dependency of a repara
ton settlement upon the question of
the interallied war debts, which is
outside of the committees jurisdic-
ton, and il points out the danger
of a collapse of German credit if the
negotiations for a settlement are too
long delayed. A short-term interim
loan, however, could be made, which
| would remove that danger. But
short-term small loan, ii is said.
would be of no benefit to certain Of
the allies, who would receive little
or none of the proceeds.
French Delegate Dissents.
The French delegate, Charles Ser
| geant, dissented from the report,
saying he was unable to accept any
| reductions in German liability under
| the treaty of Versailles or any dimi-
mutton whatever of Frances rights
under the treaty.
/ The committee decided that II
| could not usefully continue the study.
as it was extremely anxious that no
} action of the committee should
! injure the interests of France, and
| that if France did not at the present
| time desire any inquiry into the
| more general conditions necessary
| for re-establishing of Germanys eA-
ternal credit the committee did not
| feel justified in undertaking that in
| Quiry.
Solution of the European economic
problems in SO far as they depend Tor
their solution upon an international
| loan to Germany, in which the Ameri-
! can investor would take part, is not
| possible without general settle
ment of the reparations question, ana
only as a part of such settlement, de-
clared J. Pierpont Morgan, New York
banker. in a statement made tonlghl.
Two Requisites Lacking.
Mr.. Morgan, the American repre-
sentative on the international COM
mittee of bankers which has been ad-
yising with the allied reparatons
commission concerning the possibility
of an international loan to Germany,
said that in his opinion the two funoa-
mental conditions of American par
ticipation in such an enterprise were
unanimity among the lenders and tn"
establishment of the credit of the
borrower.
The reparations commission. by
voting three to one to the effect that
the committee of bankers should dis
cuss all questions which might have
bearing upon the general re-estab-
lishment of German credit. Mr.. Nor
gan said, had shown that the first
condition, namely, unanimity, had not
been met. Official French govern
ment statements, made while the
bankers were deliberating. to the ef-
feet that they were attempting 10
decrease the German debt. and
that this could not be tolerated
by the French government, had served
to convince the bankers that the sec
ond condition, the establishment OF
Germany's credit, could not be met.
He declared, however, that the com
mittee had never thought that 1t had
any power to pass upon the sums ow
ing by the German government. but
merely that it had been requested to
advise the reparations commission as
to a basis upon which Germany could
raise a loan. He said there had been
no discussion of capital amounts of
reparations, but only of possible
ARRANGEMENT of the annual payments,
and these, either in cash or in kind.
were the only method whereby Ger
many. could effect payment of her
just debts.
Statement by Morgan.
The text of Mr.>Morgan's statement
follows
When / was invited by he repa
rations commission to serve on the
bankers committee l had some hest
| tation in accepting. as 1t appeared
that under the terms of the con,
ference / could accomplish little
| more by coming to Paris than by
| cable advice from New York. Upon
further consideration. however. felt
that the matter was of such enor-
nous Importance to Europe and also
to the United States because of its
commercial relations with Europe.
| I could not well refuse. Therefore. in
the hope that something constructive
could be arrived at, I came purely
as a private citizen, holding no au
thority from my government to dis
L