Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-03-22
SCHACHT'S RETURN
'AROUSES GERMANS
Crucial Period in Conference
on Preparations Seen
in Berlin.
BY the Associated Press.

BY the Associated Press.
| BERLIN. March 22,-German polit-
| ical and economic circles feel that the
return of DR.. Hjalmar Schacht. presi-
dent of the Reichsbank, to Berlin marks
the beginning of the most crucial period
Of the course of the conference of rep
aration experts at Paris.
DR.. Schacht. arriving this morning
denied himself to all interviewers and
had his secretary announce that he
would make no statements during his
stay in Berlin. His Office maintained
its version Of yesterday that there was
no conference Of industrialists and
financiers scheduled
The Associated Press, however
learned that 1t was at DR.. Schacht's
personal request that the finance min
istry yesterday denied the existence of a
message from DR.. Schacht asking con-
ference with DR.. Hilferding, minister OF
finance. and leading German industrial
lists and financiers.
DR.. Schacht feared, 1t was said, that
II his desire for such a conference be-
came known 1t might be interpreted as
an indication he was willing to back
down from an intransigeant position OF
offering only 400, 00O, 900 marks annui-
ties as Germany's outside figure.
It was learned from Paris that he
brought with him the offer of the allied
nations representatives to accept 1,750,-
000. 900 gold marks annuities, the annu-
tiles to have certain characteristics
and to involve other conditions, neither
OF which were made known.
Outline Of Situation.
The informant of the Associated
,uvA~ d. nlA 81 he
eminent, outlined the present situation
saying:
From the beginning of the Paris ne
gotiations those On the inside knew that
the difference between the allies an
mum offer was SOC, 900 900 marks (about
1892, 900, 000) that is, the allies asked
2,200, 900 900 marks annuities and the
Germans offered only 1,400. 000, 900.
when the allies mentioned 5000
000, 600 marks annuities, they bluffed
When DR.. Schacht mentioned SOC, 000, 000
marks annuittes he bluffed.
DIR. Schacht personally Is determined
not to 60 above 1,400. 10000 marks
(about $336.000, 00o). rs he feels this
Is the maximum that Germany eco
nomically will be able to raise. Find
ing him adamant. the allies apparently
have now cut their figure 30 per cent
bringing 1t down to 1,750, 000, 900 marks
(about $420, 00o, 000).
Another 20 per cent cut would bring
the figure down to Germany's level. but
apparently the allies expect the Ger
man experts to raise their offer by just
20 per cent as q compromise"
Schacht Is Supported.
The informant continued:
'Dr. Schacht, who has behind him
the entire German delegation ut Paris,
might possibly be persuaded to agree
to 1,750,000,000 marks for IS years, but
he certainly will be adamant in his I'M
willingness to bind Germany to such q
figure for generations to come.
THE Paris conference. therefore
seems to have reached an impasse. The
German delegation feels that 1t does
not want to assume responsibility of the
conference disbanding without settle
ment and without giving those who
during the last analysis must assume
the burden Of raising the reparations an
opportunity of conferriue with DR.
Schacht. These, Of coWSe. are the
financiers and industrialists.
It was understood here this morning
that DR.. Schacht's conferences were
scheduled for Saturday and Sunday
but the greatest secrecy enshrouded the
time and place and participants.