Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-05-31
CREDITORS AGREE
TO LIFT LIENS ON
|. GERMAN RAIL WAYS
Allies Yield to Moratorium
Demand on Payments in
Time of Stress.
WORLD BANK CAPITAL
OF s100,o00,o0o is SET
Number of Notifications Made in
General Program to Organize
Financial Institution.
By The Associated Press.

BY the Associated Press
PARIS, May 31.-All but one of the
main problems still outstanding between
the German and allied reparations ex-
pertS were cleared up today.
The one problem to be settled was
whether the Germans are to pay the
last 81 annuities under the Young plan
or whether the profits produced by the
proposed international bank shall be
used for this purpose.
Moratorium Is Disposed OF.
Later the question of a moratorium
also was agreed upon, the allies yield
ing to the German demand to be al
lowed to suspend internal payments in
marks, if they should be threatened
with crisis
With the slate thus cleaned of all but
the one problem of the annuities, DR..
Hjalmar Schacht, head of the German
delegation, slipped away to Versailles
again, leaving DR.. Ludwig KaStl to con-
duct the German negotiations with the
creditor experts.
Germany and the creditor experts to-
day agreed on the question of lifting
the lien on the German railways and
on several other German conditions to
acceptance of the Young plan.
1t was definitely decided also that
the question of the reimbursement of
Belgium for German wartime marks
shall be eliminated from the experts
report, leaving the two governments to
negotiate their differences.
Negotiations to Start Soon.
Negotiations between Belgium and
Germany will begin Immediately at
Paris. M. Quit, a leading banker and
expert on European finance, will repre-
sent Belgium. Germany was expected
to name its negotiator later.
The capital of the new International
Bank. to be set up under the experts
scheme on reparations. will be $780,
100000. under a decision reached today
by the group of experts named to study
that phase of the conferences report.
The various groups appointed yester-
day, after working until midnight, re-
sumed their labors today, studying the
problem of the last 81 annuities, the
moratorium and the bank plan.
The latter wa. modified in number
of details in addition to fixing the
amount of capitalization.
Hope for Adjournment Soon.
The experts hope that the reparations
conference might adjourn within three
or four days.
Inspired by agreement upon scale
of reparations annuitieS conforming to
the compromise arrangement proposed
by owen D. Young, the experts had new
vigor and new optimism.
The burden of the work today was on
two subcommittee. One was composed
of DR.. Hjalmar Schacht and DR.. Lud-
wig Kastl, German delegates; Josiah
Stamp, Great Britain; Emile Moreau
and Commentators Pirelli, italy.
A second subcommittee was composed
of Dr. Karl Melchior, Germany; Emile
Francqui. Belgium, and Messrs. Pirel-
Ii and Moreau.
Although snags are always to be
feared in so complicated and delicate
a discussion. some of the experts ex-
press themselves quite frankly that they
saw little real obstacle to agreement in
principle befor< tomorrow night, ad-
vancing the possibility that the cares
of working out the text of a report
might be left to their secretary.