Evening star., 1924-07-17
LOAN TO GERMANY
MADE FIRST ISSUE
AT LONDON PARLEY
French Insist Bankers Show
= Aid Will Be Given Before
Accepting Dawes Plan.
NOW ASK WORLD COURT
PICK U. S. ARBITRATOR
Delegates Aware American OBJ
servers May Save Conference in
Crisis, Some Expect.
Bv the AsSoriatad Press

Crisis, Some Expect.
By the Associated Press
LONDON, July 17-French men,
bers of the Committee of the Inter-
allied Conference dealing with the
authority of the reparation commits
sion announced this afternoon their
determination to insist upon the talk
ing up by bankers of the proposed
loan to Germany as condition prece-
dent to the recognition that the
Dawes plan is in effect.
The French members also expressed
their joint conviction that the eco
nomic unity of Germany could not be
restored until the proposed loan was
underwritten.
Wants Shares Taken Up.
The French spokesman said his
delegation regarded the fiotation of
the 10000, o,OOo-pound loan to Ger
many as the only Basis on which the
Dawes plan could be launched. His
colleagues, he said. would not neces-
sarily insist that the funds actually
be subscribed, but they regarded it
as absolutely fundamental that the
bankers should have taken up the
shares before France could recognize
that the Dawes plan had begun to
operate
When this member of the French
delegation was asked whether he
thought British and American bank
ers. upon whom main dependence to
underwrite the loan is being placed
would agree to Frances proposal he
thought there would be no difficulty
in convincing the financiers of the
reasonableness of the French posi-
ton.
Defends French Position.
. Frances viewpoint, this member of
the delegation pointed out, is abso-
lutely justified by the decision
reached by the reparation commission
at its last meeting in Paris, when it
was decided that assurances that-thes
loan would be subscribed must be
among the conditions determining
the actual starting of the Dawes plan.
Pointing out that guarantees is
a very troublesome word, the French
-
possible for the conference to agree
upon mutual assurances satisfactory
to both Germany and France that as
soon as the money for loan has
been subscribed France will prompt
ly restore the economic unity of Ger
many.
France, therefore, still affirms her
optimism toward the results of the
conference. Her delegation expresses
the belief that with the completion of
the arrangement through which the
German loan will be launched, the other
conditions stipulated by the repara-
tion commission as essential to de-
termining that the Dawes plan is in
operation can easily be met.
Court May Pick Arbiter.
The statement was made before the
French officials entered a meeting Of
their committee, which was formed
by the conference to deal with the
authority of the reparation commits
sion in respect to the action to be
taken in the event of possible default
OF Germany in the execution Of the
Dawes scheme.
1t is understood, according to
French semi-official source, that the
committee of the conference. which
will decide on the means of naming
the American representative on the
reparation commission, whose task it
will be, in accordance with the Her
iot-MacDonald plan, to arbitrate on
the question of Germany's eventual
default, seems in agreement to ask
the International Court at The Hague
to name this American representa-
tive.
Dominions Garry Point.
The conference got down to serious
business today. Three committees,
appointed to formulate an agenda,
continued their work and a second
plenary session was called for this
afternoon.
The delegates are aware that, al
launched in spirit of optimism,
clouds may gather on the horizon al
most without warning and then 1t is
that the United States will have to
muster every resource of strength
and tact if the conference is to be
saved.
The British dominions today prob
ably will add their own delegates to
the conference. The question of
dominion representation was the first
Misunderstanding to occur in rela-
tion to the meeting. 1t is understood,
however. that the question has been
settled to the satisfaction of Ireland
and Canada which had demanded
representative of their own II they
were to be bound by the conferences
decision.
U. s. Gives Allies Hope.
The high hopes which the appear
ance of the American ambassador has
raised among all the delegations en-
phasizes the importance of the role
which Mr.. Kellogg may be called
upon to assume In the critical stages
which must be passed If the Dawes
report is to become an instrument for
solving Europe's woes. For. although
the conference has been launched in
: AZ spirit of optimism, the United
States may have to. muster every re-
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