Evening star., 1924-07-23

trustee and also by five members or
the Dawes committee, who would be
called in. Then the question OF sane
tion would be put to the reparation
commission and If there was a
unanimous vote in favor OF sanction
all the allies would join in imposing
them.
The hitch in the Kellogg plan
comes in the possibility of the repa-
ration commissions vote not being
unanimous. In that event the ques-
tion would then arise as to whether
the nations voting in favor Of sane
tions would take them, or whether
they would be held back by the ma
tions which had voted against the
taking of penalties.
Fear Independent Action.
The only problem from the finan-
ciers standpoint is that if any na-
ton voted In the sreparation COM
mission for taking sanctions 1T might
be difficult to restrain Independent
action on the part of that nation.
AS long as this is possible, it was
said, the financiers consider that the
basis for credit is not sound.
At the close of yesterday, after
Moons conversations between finan-
cial experts and = the bankers the
French delegates reiterated that
France was irrevocably committed to
the Versailles treaty and the inter-
probation regarding separate action.
In American circles it. is taken that
rate action by France.
The American bankers attitude
was laid before the allied finance
ministers and their expert consult
ants by Thomas Lamont of the firm
of J. P. Morgan & Co. In behalf
of American investors the conferees
were asked to remember that Ger
many has a bad reputation in Amer
lea with respect to her debts and
that therefore a German loan could
not be made an attractive investment
if there remained the possibility that,
with the Dawes plan operating, any
nation could by separate action
jeopardize the whole scheme and null
lily the loans security.
--- French Raise Issue.
Mr.. Kellogg's oportunity came yes
terday afternoon, when the French
ideas of security were found to be
out of harmony with the guarantees
required by American financiers who
are expected to take up a consider
able portion of the 10000, 900 loan to
Germany.
When it was finally determined at
the meeting of the allied finance
ministers with the American and
British bankers that the safeguards
unanimously agreed to by the COM
specting the German loan were con-
sidered insufficient by the financiers,
Premier Theunis of Belgium is under
stood to have advanced the first
alternative. ....-
NJ Theunis proposed. that a Ger
man default. which the first report
stated might be adjudged by the repa-
by that commission only after con-
sultation with five members Of the
Dawes committee, who would act in
an advisory capacity. This is under
stood to have proved wholly unsatis-
factory to the American bankers
Then it was that Ambassador Kel-
loggs alternative proposal was
brought forward.
While the implication is that Mr..
Kellogg's proposal lis abhorrent to
France, French spokesman advance the
view that Frances real salvation
rests in unanimous action by the
allies in enforcing the Dawes report,
and that 1t is hardly conceivable that
situation could arise in which
France would desire to invoke sep
arate sanctions. It is pointed out
that the present French government
opposes separate sanctions.
While 1t would seem that this view
by France has brought her very near
to unanimous accord, upon which the
hopes of the present conference are
based, it Is learned that France feels
unable to commit herself by protocol
to position precluding separate
action.