Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-03-10
PREPARATIONS BANK
IS URGED IN PAR|SI
International Non-PoIiticaI
Agency Called Solution
of War Debts.
D. the Associated Press.

D. the Associated Press.
PARIS, March ga substitute for
political machinery which will take the
liquidation Of Germany's international
obligations out of the realm Of political
discussion and transfer it to the orderly
form of business is the way the repara-
tons experts international bank plan Is
described in an official summary issued
this evening.
Emphasis is laid on the fact that the
whole scheme is as yet tentative, sub
feet to rejection in whole or in part on
further examination. The primary
function of the institution at the be-
ginning will be to act as trustee for re-
ceiving annuities under the head OF
reparations from Germany and disburs-
ing them among creditor nations. This
function, it has been thought among
the experts, was likely to develop other
uses, such as financing, deliveries IN
kind and facilitating transfers between
creditor nations.
The form of the new intermediary
suggested itself to the experts by rea-
son of "the belief that in order 10
achieve final settlement of reparatlons
It will be necessary gradually to do away
with the great part of the temporary
wartime machinery created TO collect
rensrations. and for this. If possible, 10
substitute permanent peace-time ma
chinery."
Co-operation With Banks.
The proposed bank could cooperate
with and act as central mtermeolaIy
hetveen all interested governments ana
issuing bankers in marketing OF oonoS
that might be issued for commerCial
German annuities," the summary Salo:
It added that the institution "coulG
operate with existing banks Of issue ana
if desired receive from them botn clear
ing and investment deposits.
1t was explained that the relatlonS
between the international bank ana
hanks of issue will be such as to pre-
vent that institution from ever assuming
ANYTHING like the character OF "a super
bank" 1t is proposed that the inter
national bank be required to have the
approval of banks of issue in its princl-
nal operations in any particular country.
The purpose of the experts is to set
uu an institution that will be as advan-
tageous to debtor as to creditor nations.
with the establishment Of such
financial machinery, Germany would
stand on her own feet financially,
would have the responsibility for main
tanning her own credit and would be
dealing on a business basis with an
international financial institution oper-
ated on sound business principles. the
summary points out. 1t adds that TO
creditor nations 1t would be valuable
as facilitating an uninterrupted now OF
annuities and furnishing reader facility
for ultimate commercialization Of the
German debt"
Details Undetermined.
Details of the organization OF the
new international institution are Sui
left undetermined, but the summary
saws that las to its management the
scheme makes clear that the bank, II
orcanized. must be non-political, inter-
national and free from any dominating
financial relationships" Only men OF
experience and international repute
should sit on its directorate, advisory
committees are suggested to be COM
posed In such manner as may be nee
essary to secure sound opinion OF prop
lens to be dealt with. Off1cers OF the
bank would probably be in one OF the
smaller countries where suitable legal
status and freedom from taxation may
be obtained.
The large amounts of foreign ex-
change which the bank would normally
hold, would, 1t is said, not only Mt IL
for the clearing function, but enable it
to aid the Reichsbank and other cen
tral banks in maintaining the stability
Of their exchanges. 1t is added that the
new bank may serve to fill possible gaps
that now exist in the worlds banking
organizations and particularly such
gaps as may have resulted from new sit
uations created by reparation and debt
settlements"
This case did not refer to war debts
payable to the United States, but to
transfers between European countries,
the summary adds. 1t is expected that
next weeks discussion will clear the
subject so that the committee can
decide whether to go ahead or post
pone further consideration OF 1t.