Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1924-07-20
lnter-Allied Conference
Agrees on Two Important
Principles of Dawes Plan
nr rhe Assnclnied rrrs.. ,


LONDON. fy l9.--The committee on
sanctions on the inter-allisd conference
agreed unan mrusly today on two impor-
taHt principles "a govern the action 81
the allies in the event of possible de-
fault OF Germany under the DAWES rep
aratinn plan. namely. to insure invcs-
tors in tho loan q Germany Of rr ority
on an German resources in event of such
default. and 70 preserve the rights of shc
Treaty.
with this agreement. IN the cpon.on
of the American. British ami Fren-h
delegates. long step has been tax y to-
ward the success or the con ercncc. Epcn
which such high principles have been
rails for the economic restoration Of
Europe.
At the opening Of ihc conference Wed
rcsday. II was generally recognized
that the proposed loan to Germany was
the crux of the Dawes plan. and after
only e. = days deliberations. it was pos
Sible Tor the committee to agree that
in any contingency, including default
..ni resultant sanctions, the holders cf
the loan should have priority 10 the
assets Of Germany. With this was coup
led an agreement that the protocol to
make the conference action effective
shall reserve All IN rights enjoyed at
present hy those countries which sign
"a the treaty of Versailles
France halls the latter decision ~ a
distinct victory for htr and takes il 10
mean that She s;.ll has the right to sep
arate acticn should Germany de auli
The American and British delegates
share in The French enthusiasm oY the
fact that the unanimon agreement has
carried the work Of the conference SO
far forward although they do not share
all IA. inference France Is ready 10
draw from today's understanding.
Owen d. Young. the American expert.
who IN credited with the inspiration Of
the loan nrantee, although il actual
ly was proposed to the comr-ittee by
Count de rtrrit de III Rccra. Nj Italy.
told the Associated Press tonight that in
lis opinion il offered sufficient safe
guards To investors ID insure the loans
successful fioataticn and the fear of
the -ossiti ility Of operate French action
against GermaRS would not cndangrr
the investors guarantees.
The American and British do not con
ccde that the document agreed upon to-
day empowers stpa.ste action IN
France. in fact. neither the present Mac
donald government, nor any pr vious
government. or any considerable section
Of public opinion @ffas evtr rccovnizsa
the legality under the treaty of v rsaii-
les of the present French occupation NJ
the X hr.
But. III il pointed out such Gcustions
Of legal construction remain for thr
futur- Icr the time being, France has
won her demand that The rcparation
commission shall remain the arhitpr af-
ter Gcrmany's faith under the Dawes
plan.
In establishing the German u fault.
the repafation commission must take the
advice of the agent general ~ rcpara-
tions ard thu trustees Of The loan. but
those ticials will not be empowered
as Great Britain first desired tu act as
sort of grand j Fy IN det- rmining tht
pi.liminaries Of the default. That re-
mains the prtroratiye ~ the rgparation
con mission. aa France insisted from the
slart.