Evening star., 1924-07-22

Hollis Once Five Years.
The person appointed shall hold Of
fice for five>years, and may be reap
pointed. In the event of any vacancy
the same procedure shall apply to the
appointment of his successor.
provided always that if the United
states is officially represented by
delegate on the commission. any
American citizen appointed under the
foregoing provisions shall cease to be
member of the commission, and no
fresh appointment under these provi-
sions shall be made so long as the
United States is so officially repre-
sented''
In the event the Reparation Com
mission adjudges Germany in de-
fault. the governments interested
must confer at once on the nature OF
the sanctions to be applied. and the
method of their rapid and effective
application" During the currency Of
the loan the allied powers agree not
to apply sanctions unless the Repara-
tion Commission declares a default,
after taking the opinion of the agent
general for reparation payments and
the representatives of the foreign
bondholders.
Treaty Rights Reserved.
All the existing rights of the sigma
| tory powers under the treaty of Ver-
Dawes report are reserved.
There is some apprehension in
conference circles over reports from
Berlin regarding German opinion of
the methods by which the work here
is proce eding. but as yet there is no
intimation of when the Germans will
be called in. The conferees are
closely watching the reaction in the
in Germany. But the main interest
centers around the reaction in finan-
cIal circles through the provisions
set forth for the protection of in
VeStors in the German loan.
1t was learned that a plenary ses-
sion would not be held today and
that probably the report of the COM
mfttee on default and sanctions
would not be considered at any
plenary meeting until sufficient time
had been received. 1t was even in
timated that should the bankers
withhold their assent to it's provi-
| sions il might be modified. This.
however, met with an emphatic mega
tive from the French delegation.
Want Wide Investment.
While British and American bank
ers are being relied upon to take up
the bulk of the proposed German
| loan. it became known last night that
hopes ore entertained that some por-
tion of 1t will be subscribed on the
continent. The conviction is that
the more widely this investment is
will the world have in the economic
restoration. which it is so confidently
hoped il will bring about.
One observer declared that when
the choice lay between the Dawes
plan and no alternative except fur
ther chaos, it would be possible for
many interests, which are at present
adamant to modify their views.
Among all the delegations the con-
victlon remains unShaken that any
program upon which Great Britain,
France and the United States ulti-
mately reached unanimous agreement
has a good prospect of realization.
There is little doubt among the
delegates that the problems before
the two committees dealing with the
restoration of Germanys economic
unity and the disposition of German
deliveries in kind will ultimately re-
solve themselves into equahle under
standings. There is said to be no
disagreements in principle in either
| of these committees.
Debts Not Discussed.
With regard to.the various state
the question Of interallied debts, ii
was reiterated last night that this
question is entirely outside the pur-
view of the present conference. the
putting into operation the Dawes
plan. The view repeatedly expressed
here is that consideration of the
question of interallied debts and the
question of French and Belgian Sc
curity will have to be delayed until
further date.
King George yesterday afternoon
received in audience at Buckingham
Palace NJ. Herriot, NJ. Theunis and
NJ. Hymans. The King greeted the
Il q n
conversation with them expressed an
earnest hope that success might at
tend the labors of the conference.
For the present the King will not
some of them will be received daily
and the King will get in personal
touch with as many of them as time
and opportunity will permit.
United States Bankers Cautious.
The Daily Telegraph, in an en-
phatic statement, yesterday, declared
that a hitch has occurred in the con-
can bankers being disinclined to take
up the loan on the strength of guar
antees embodied in the protocol
framed last Saturday.
The Telegraph's diplomatic expert
municated the facts regarding this
financial obstacle to the chief dele
gates, who received the information
with keen disappointment and some
feeling This was the situation, II
was said, which led to a prolonged
meeting late in the afternoon Of the
financial delegates with Sir Montagu
Norman, Governor OF the BANK OF
England, and Thomas Lamont, rep
resenting the firm of ]. 2. Morgan d
Co. of New York.
The bankers, according to the
TeIeeraph. regard the political safe
guard embodied in the mere asso-
ciatjon of an American citizen with
the reparation commission as lnaoe-
ouate protection to the lenders, mas
much as, in their opinion, the arrange
oent does not altogether insure an
impartial majority on that pooy:
They frankly dislike Article ~ OF
the protocol, it was said, Whlcn tney
regard as ambiguous and containing
a possible loophole for one power or
the other to take Independent sanc-
tions in the future.
Need German Good Will.
nh. bankers also hold, the news
paper declares, that German good Will
is indispensable to the loan, while
some Of the financiers are worried
over the railroad problem and allied
military demands regarding 1t.
The Telegraph writer adds that
the difficulty is that, while all pow
ers, including France, would be
Wiling to improve upon the financial
guarantees contained in Saturdays
protocol, the French government
would find it extremely difficult to
concede to the financiers what it de-
clined to concede the other allied
governments in the way Of political
guarantees, but the bankers are
equally adamant respecting the need
Of those additional guarantees.
HUGHES WARNS FARLEY.