New Britain herald., 1925-01-12
Payment 10 America
By The Associated lrels.


 Paris, Jan. 12. Allocation of 2 IA per cent of the receipts from Germany under the Dawes plan, be- ginning with the first annuity, to payment of American war damages Is the first definitely settled point in the discussions of the interallied financial conference.
 Thu ether points In which the American delegation is interested are in d fair way toward the settle- ment to the satisfaction of Wash ington, but considerable more me- gation is necessary and the chances are that the plenary meet ing of the conference, which was postponed from today until tomor- row, may be put off another day.
 France Cetles Most ', The share to be reserved to the United States will decrease the per ing the greater part, or 1 1-4 per cent but it is pointed out that ex- tension of the period over which the occupation expenses were spread un- der the Wadswor.h agreement com pensates largely for these conces- sions, as it will take 50 per cent less from the reparaSon payments.
 The decrease in percentages will be further offset by the fact that within a couple of years, after Bel gium has been paid her priority in full, the Belgian percentage will tall from to AZ per cent.
 The U. S. Agreement
 The American delegation is mak- ing use of this argument to resist the demands of the allies that the beginning of the payments toward the American army costs be deferred until 1&26.
 The supposition is that the French and British shares In the separations will be restored respectively to 52 and 22 per cent after the Belgian part is reduced to Az per cent.
 The American delegation had its usual conversation at it's headquar- ters this msrning, after which James A. Logan, Jr., Went into conference with the British at their headquar- tors.
 Twenty Instalments
 The American occupation costs, ac- cording to British sources. will be repaid in 20 instalments of 52,O00,- coo gold marks, (s13, ,O00,OOO) an- nually, beginning in 1928. This will yield practically the same total as the Wadsworth agreement for l. 072,000.000 gold marks (S2GS,Q00,- OOO) payable in F years, which now Is scrapped. The payments, however. are spread over longer period and therefore have less value from the banking point of view.
 The American reparation claims, according to ,.. ..allv ao',1,.'. te repaid, beginning i'",..>-..>.- out of the 1-4 per cent taken '. the shares of the allies, 1t is pro- vided, however. that in no year may the total of United States army costs and reparaton payments exceed S7,000, 900 gold marks t$2l,7So,OO0) which was approximately the figure of each of the 12 payments under the Wadsworth schedule.
 As the army costs amount to BE- 900, Oo0 gold marks yearly the pay ments to America on separations thus cannot exceed S5,O0O,oOO gold marks annually. This figure will not be attained until after the first three years of the Dawes plan op- eratiors. but as the percentage ap- plies throughout the life of the Dawes plan the reparation payments will increase after 20 years, when inc army expenses will have been reimbursed.
 situation Uncertain
 The aactuating sentiment with regard to the conference as a whole had veered back to a point about halfway between optimism and pessimism today. The buoyant
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