New Britain herald., 1924-07-22
GERMAN LOAN PLAN
 BEFORE DELEGATES
lnter.Allied Conference Discusses
 Safeguards Offered
bY The Assaeiatsd Rre.s.


 London. July ss,-The guarantees provided for safeguarding the German loan with which it is proposed to launch the Dawes reparation plan were the chief topic Of discussion among the delegates ta the inter-al- lied conference today. The discussions between the financial delegates Of the conference and the British and Amer lean bankers who are being relied upon to take up the bulk of the pro- posed sson,o0h.00o loan. which besa n Immediately with publication Of the findings of the committee on defaults and penalties, were continued.
 The sufficieney of the financial safe guards which this report provides was q question which oyerhadowed every other Issue In the discussions amongst the delegates, hnsnciers and dirlo- matte experts,
 While the official delegations insist cd upon maintaining a note Of optim- ism and while the bankers remained silent. there were nnmistakable evi- dences that tho hnanciers were dis satisfied with the recommendations Of the committee regarding the question Of Germany's default.
 While official quarters were not in. clined 10 regard the bankers attitude as raising a crisis. 1t was recognized that this reassertion of the bankers . proper demand for security for the proposed loan must be met with pro- per guarantees since it was generally recognized that successful launching of the Dawes. plan depended in the first place upon Notation Of the loan.
 The British attitude has always been that 1t istof DO use to prepare elaborate plans dependent upon the loan until 1t is clear that the loan is certain to be forthcoming,
 Every effort Is being made in the discussion between the conferees and the bankers to obtain the bankers ap- proval of the scheme.
 While the general feeling regarding an ultimate agreement Is still optimis- tic, 1t cannot be denied that the situ- ation Is not quite so bright today in view of the differences which have arisen since the committees report was made public last night. In this connection. it is emphasized that after all ths committees report is tentative and. of course, has no binding effect until 1t is ratified by the plenary con- ference and embodied in the formal protocol.
 The vagueness of the article under which France might insist upon her right to separate action in the event of Germanys default is a principal stum bling block. In the background there always appears the figure of Raymond Poincare, former French premier, as one of the most powerful French have to keep this in mind in connection with any concessions they may grant regarding French rights under the Versailles treaty.
 It is understood that the American bankers are most frank in their dis satisfaction with the present security for the loan although outwardly they are maintaining !non-committal at- fitude.
 Tn the conversations between the conferees and the bankers, it is learned that some consideration has been given to a proposal accredited to the Belgian delegation under which the reparation commission would be further tAmericanized by placing un- der 1t not only the agent general of reparations and the representative of the loan bondholders but also another American who would be the represen- tative of the bankers. It Is under- stood that this proposal is tentative and that the exact status of these off cials under the reparation commission has not been definitely worked out.
 The task before the conference of dissipating the doubts and anxieties which the bankers feel about the se- curity for the German loan is increas- ed by two considerations. In con ference circles 1t is stated there can be no serious consideration of gov ernmental guarantees of the loan nor is there any likelihood that France will agree to forego her rights to separate action, which she claims un- der the Versailles treaty.