Evening star., 1924-07-23
American Financier Says A.
lied ParIey Is Certain to
Result Successfully.
KELLOGG'S PROPOSAL
BASIS OF Agreements
Governs Sanctions and Defaults
Now Baking Guarantees
for Loan.
By the Associated Press.

BY the Associs ted Press.
LONDON. July 23.-The interal-
lied conference undoubtedly will be
successful and the Dawes plan will be
given its chance to solve Europe's
economic ills despite the present diff
ferences between bankers and the
conference delegates over guarantees
for the f4o,000,o00 German loan, a
leading American financier today told
the Associated Press before sailing
for home after having for several
days been in the closest touch with
conference proceedings.
This authority, who has followed
the Dawes plan since its inception,
declared there was no question
among bankers regarding the exist
ence of ample guarantees which will
insure the comparatively small sum
required for the service of the loan.
the problem is. he added, to reduce
the potential guarantees to definite
forms which will stand as a solid
basis of credit
Kellogg Plan to BE Basis.
1t will be the conferences task dur
ing the next few days to put into
writing and reach a complete agree
ment on some such plan on sanctions
and defaults as that proposed by
American Ambassador kellogg yes
terday, 1t Is stated. The American
fnancier was not certain that the
Kellogg proposal would prove salts
factory to all the allies, but he said
1t would be a basis for the conference
to work on and from it the final
agreement on guarantees would be
developed.
The financier characterized the dif-
ferences which have been DELAYING
the conference as trivial, and said
there was not the slightest prob
ability of the allied delegations leay-
ing London without accomplishing
the purpose OF their meeting, namely.
that OF making the Dawes scheme
Penalties Report to he Changed
Plans for 4 plenary session OF the
conference beginning at o'clock
this afternoon called for the presen-
tation by committee No. / of the con-
ference of its report on defaults and
penalties. as made public two days
ago. Inasmuch as this report has
met with objections from bankers It
was expected the conference would
refer 1t back to the committee for al
teration along some such lines as
Ambassador Kellogg proposed yester.
day.
Appointment of a judicial commit
tee which will examine the proposals
Of the other committees to see IL they
conform to the treaty Of Versailles
was another item on the pIenary ses-
sion's program.
Premier Herriot OF France con-
ferred this morning at the American
embassy with Ambassador Kellogg
and Secretary OF State Hughes. after
which Mr.. Kellogg and the French
premier joined the leaders of the
other conference delegations In
Downing street.
Seek Escape From Deadlock.
Efforts to break the deadlock In
the conference over the financial
guarantees for tho f4o,oOO,oo loan
today occupied the entire time OF
the delegates.
The Kellogg settlement proposal
under consideration Is not concerned
with the declaration Of the German
default, but deals entirely with the
manner Of application Of sanctions to
Germany. 1t proposes that sanctions
may not be applied until recon-
mendations for a default have been
made by the agent general OF the
reparations and the bondhoIders'
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