The Birmingham age-herald., 1923-01-02
WORLD PEACE.
 AT STAKE. AS MEET
With French Threatening to Take Direct Action Upon Preparations; PremierS
 Gather in Paris to
 Seek Settlement
By Associated Pres,

PARIS, Jan. 1.-The prime min isters of France, Great Britain and Belgium, together with the Marquis Della Torretta, representing the Italian premier, will go into con ference tomorrow in what is re- gprded as the final effort of the al lies to reach collective settlement of the reparations question. There was a sober and even anxious spirit in allied circles tonight, in face of the probability that, if the confer ence fails, separate and direct ac- tion by France will follow.
 The meeting is 2 continuation of last months premiers' conference in London, which was called to ex- anime whether any practical results could come from a general eco homie congress in Brussels. The main questions to be decided are, first, whether moratorium can be granted to Germany and, second, on what terms.
 French and British Divided
 France and Great Britain are sharply divided in policy. The French insist on seizing the productive re- sources of Germany on the left bank of the Rhine and the Ruhr valley as guarantees that when the morato- rum terminates. Germany will re- sume her reparations payments. President Millerand, in replying to the New Year good wishes of the diplomatic corps today, made it clear that France stands on her concep- tion of justice and her rights under the treaty of Versailles.
 Complete peace can be estab- Hshed,s he decllred. ''oniy on the basis of the treaties and through re- spects of the rights acquired and the obligations incurred"
 The British government thor oughly disapproves stern methods or penalties and desires to work out a plan under which Germany will be allowed a moratorium of at least two years, this time to be employed in so reorganizing her resources that she may successfully shoulder debts. Any settlement likely to be successful de- bends, in MT. Bonar Laws view, on an international loan for Germany,  clates. he has received with approval the suggestion of the American Sec retary of State that an international committee determine the amount of reparations to be expected.
 French Demand Change
 The conviction held by Premier Poincare of France Is that change by Germany is required above all other considerations He believes Germany's plans are based on pol icy of resistance to the execution or the Versailles treaty and any effort to help he regards as useless. until the Berlin government decides in earnest to fulfill its obligations
 Extension of the present partial moratorium, which expires January 15, and the raising of cash for Ger many in the International market will in the French view, be nullified by the continued German opposition to payment of her debts, so that ac- ton such as France now contem- plates will be eventually forced on the allies.
 The Belgian and Italian govern ments appear to lean more toward the French view than toward the British but with some disposition to seek middle ground. The Italian delegation has a plan which it will present to the council after Poincare and Bonar Law have explained the French and British viewpoints. This concliatory program calls for guar antees to satisfy France but without penalties so as to meet the British objection relying on such action by Germany as would have the result of making the guarantees productive without the use of force.
 The Belgium premier, M. Theunis, who worked strenuously in London last August. to bring Lloyd George and Poincare together also seeks to harmonize the French and British governments which he thinks could be done if the German government would reservedly affirm it's willing ness to fulfill the reparations clauses of the treaty to the full extent of the nations resources Both the Belgium and Italian views thus rely on Ger many to surrender. economically trusting that the allies will lay down for her terms that she can meet.
 The French cabinet meets tomor- row under the chairmanship of Pres ident Millerand to decide finally the French governments policy.