Evening star., 1924-07-28
NEW j. S. PROPOSAL
ON LOAN HITS SNAG
Plan Combining Features of
Belgian and Experts Pro-
duces Divergencies.
DELAY CALLING GERMANS
Conference Leaders to Discuss Invi-
tation Further-Deny Ameri-
cans Clog Progress.
DELAY CALLING GERMANS
By the A AsSnciated press

BY the Associated Press.
LONDON, July 2s.-The compromise
proposals. said to have been offered
by the American representatives at
tho inter allied conference and in
tended to break the deadlock on the
subject of security for the loan to
Germany, which appeared to have
met with success earlier today, pro-
duced Emergencies late this after
noon, which, it was believed, would
rule out the new plan as a possible
solution of the difficulty.
The experts of the conference who
drew up the proposal which it, was
understood was a combination oA the
original plan for security with the
proposal of Premier Theunis of Bel
gium for calling in the members of
the original Dawes committee before
any action on faults or sanctions
could be taken, will hold further
meeting on Wednesday when discus
sions on the subject will be con-
tinued.
Plehary Session Today.
o'clock this afternoon to reconsider
the proposals which are intended to
reconcile the British and American
bankers to the attitude of the con-
ference delegates on defaults and
sanctions under the Dawes plan. The
experts expressed the hope that a
complete agreement may be reached
at 4 O'Clock.
The question of an invitation for
German delegates to attend the con-
ference was postponed late today for
a decision by the Big Five" to-
morrow.
When the Germans arrive they will
not only urge the economic and mill
tary evacuation of the Ruhr valley
but will probably also raise the ques.
tion of evacuating the Cologne zone
now held by British troops, according
to the Daily Mail. whichs says the
British government has received exact
information to the foregoing effect.
Macdonald Faces Dilemma.
IL
that Premier Macdonald told his al
lied colleagues Saturday that it would
be difficult for Great Britain not to
withdraw in accordance with the
terms of the treaty, which stipulates
that, provided the treaty is faithfully
carried out, the Cologne bridgehead
shall be evacuated five years from
lof xr,hi iNh he
effective. This period would termi-
note on January 1 next.
The paper points out that the
French theory, with which the Bel
gians mainly agree, is that the Ger
mans have not carried out the treaty
faithfully and that therefore the stip-
ulated FIVE years have not yet even
begun Hence serious dilemma
arises, for if the British withdraw
from Cologne it will be useless for
the French to hold the other bridge
heads, and the whole edifice of the
allied occupation of the Rhine will
crumble Immediately.
Since the conference was dead
locked a week ago on the question
of security for a loan to Germany
there has been a growing feeling in
Amer. IN official circles against re-
current reports that the whole diff
Guilty has been caused by the unyield-
ing attitude of American bankers
who. according to the newspapers,
have sought to put their views on
political as we'll as economic ques-
tions before the conference.
Kellogg Corrects Mistake.
Frank B. Kellogg. the American
Ambassador, has expressed the opn-
ion that there had been considerable
Misrepresentation of the efforts OF
the American bankers to protect in
vestors in a German loan, and last
night from other authoritative
sources it was intimated that the
American observers are unwilling
that the misconception Ff what ac-
tually has happened should continue.
Charles Z. Hughes. the American
Secretary of State, and Ambassador
Kellogg had luncheon yesterday with
Ramsay Macdonald. the British prime
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