Evening star., 1924-07-31
Committee Unanimously Ac-
cepts Compromise Upon
Security for Loan.
MACHINERY FOR FIXING
DEFAULT COMPLICATED
Some Modification of Dawes Plan
Observation-Disclosures Must
Approve Scheme.
By the Associated Press.

LONDON, July 31.-The members of
the experts committee of the Inter-
Allied conference, after examining
the proposals submitted by the
French experts yesterday, as a COM
promise plan to end the conference
deadlock over security for the Dawes
plan German loan, declared their be
lief today that the French proposals,
with minor alterations, would proba-
bly, be acceptable to the conference.
The French proposal was accepted
unanimously by committee number
of the conference, while an amend
ment put forward by the British
members this morning was with
drawn, both the French and British
delegates congratulating each other
on the happy turn of events. One
delegate said:
'rThe great difficulty of the con-
ference now is over"
Rock-Bottom Proposal
The new French proposal, embody-
ing Premier Herriots rock-bottom Of
fer in concessions to break the dead
lock in the interallied conference, was
handed to Prime Minister Macdonald
at o'clock yesterday afternoon and
laid before the chief delegates in
cluding American Ambassador kel-
logg, who were gathered in the Prime
Minister'S room of the House of Com
mons.
After the adjournment Of the del
Ill So n
ment on whether the French proposal
would be acceptable until the Amer
lean experts had studied it
On its face value the French pro-
posal, as authoritatively interpreted.
seems to be great concession OF
Frsnch policy. The proposal con-
tains three maia points, besides some
features OF the original plan for
sanctions and defaults. The first
point seeks to calm British fears that
a sham German default may be de-
clared by providing for a board of
arbitration, which will make dec
laration of default by the reparation
commission much more difficult to
obtain than at present.
The second point provides for the
establishment of machinery to handle
defects which may develop in the
working of the Dawes plan, particu-
larly in relation to deliveries in kind.
The third provides for guarantees
that Germany will not maneuver out
Of payments in kind. It also enables
Rro L
tending the terms for payments in
kind beyond the provisions of the
Versailles treaty date, which is 1880.
Acceptance of these proposals in
wolves modification Of the Dawes
plan. The board of arbitration which
the French propose shall be established
for working with the reparation COM
mission in declaring a default is to
have three members, who will be
nominated by the reparation COM
mission as soon as the conference ad-
journs If the reparation commits
sion can not decide unanimously on
the arbitrators, then the appointments
will be made by The Hague court 1t
is assumed that an American, a
Frenchman and Briton will consti-
tute the board.
Fine Point Involved
A declaration Of default under the
French plan involves a very fine
point, for the arbitrators themselves
will not arbitrate an actual default,
but will arbftrate the question Of Q
default being considered by the rep
aration commission. If q charge OF
default is made against Germany. the
reparation commission will vote on
the charge. If it's vote is unanimous
the allies will consider the sanction
to be taken.
If the reparation commissions vote
is not unanimous, the minority mem
Der can appeal to the arbitration
board which, by a majority vote, will
refer the question back to the repa-
ration commission for another vote.
Should this bring about a majority
ballot declaring a default it will make
the default effective. In a way, the
board of arbitration will act as a sort
of grand jury which returns an in
dictment upon which the reparation
commission will act
The French proposal supersedes
both those of James A. Logan, jr.. the
American observer, and M. Theunis.
the Belgian premier. If the confer