The Birmingham age-herald., 1924-07-20
INVESTORS PROTECTED IN DEFAULT French Gain Point In Maintaining Treaty
 Rights SEPARATE ACTION OPEN TO CONTEST British Cite Lack Of Rat- ification Of Ruhr
 Occupation
 .-s1 PARLEY'S SUCCESS LAID TO AMERICANS FlOtatiOn Of Loan Assured By Agreement, Owen D. Young
 Believes
SEPARATE ACTION
 OPEN TO CONTEST
PARLEY'S SUCCESS
 LAID TO AMERICANS
(By Associated Press.)

LONDON, July 19.-TAe com- mittee on sanctions of the inter- allied conference agreed unari- mously today on two important principles to govern the action of the allies in the event of possible de- fault by Germany under the Dawes reparation plan, namely, to insure investors in the loan to Germany of priority on all German resources in event of such default, and to preserve the rights of the countries signatory to the Versailles treaty.
 With this agreement, in the opinion of the American, British and French delegates, a long step has been taken toward the success of the conference, upon which such high hopes have been raised for the economic restoratio of Europes
 Loan Is Crux 8
 At the opening of the c iersrce. Wednesday, it was generally race se.j that the proposed loan to Gerraapy ~as the crux of the Dawes plan, dad ; tse four days deliberations, it wal esslhls for the committee to agree thss 4a 3 ~ contingency, including default slsaA re sultant sanctions, the holders otl$sha loan should have priority clai11 th the assets of Germany. With thi tf cops pied an agreement that the profseoI to make the conference action sfescoive shall reserve all the rights enjoyed at present by those countries whicf signed the Treaty of Versailles.
 Ls.a~oo ka; bA Ia& dAni distinct victory for her and tt Aes lt to mean that she still has the irht to separate action should German 1eesult. Premier Herriot announced hit ssafsc, tion with the great progress %A4Ga has been made and his adherents construed this as calculated to silence any charge by his opponents that the premier bar tered away the rights of France under the Treaty of Versailles.
 Share Enthusiasm
 The American and British delegates share in the French enthusiasm over the fact that the unanimous agreement has carried the work of the conference so far forward although they do not share all the inferences France is ready to draw from today's understanding.
 Owen D. Young, the American expert, who is credited with the inspiration Of the loan guarantee, although it actually was proposed to the committee by Count de Peretti de La Rocca of Italy, told the Associated Press tonight that 3n his opinion it offered sufficient safe guards to investors to insure the loans successful Notation and that the fear of the possibility of separate French action against Germany would not endanger the investors guarantees.
 The Americans and British do not concede that the document agreed upon today empowers separate action by France. In fact, neither the present Macdonald government, nor any pre- vious government, has ever recognized the legality under the Treaty of Yer. sailles of the present French occupation of the Ruhr. But, it is pointed out, such questions of legal construction re. main for the future. For the time be- ing France has won her demand that the reparation commission shall remain the arbiter of Germanys faith of the Dawes plan.
 Agent to Advise
 In stablshing possible German de. fault, the reparation commission must take the advice of the agent general of reparations and the trustees of the loan, but those officials will not be empow. cred, as Great Britain first desired, to act as a sort of grand jury in determin- ing the preliminaries of default. That remains the prerogative of the repara. tion commission, as France insisted from the start.
 On all sides tonight, but especially among the French delegation, there is a disposition to concede that the United States played an important, although
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