The Washington times., 1929-05-23
DEBT PACT
CRISIS
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AlAVAAAANt hdy ~ N AAsANs s0' ~
DR.. Albert Voegler resigned
today as one Of the chief Ger
man reparation experts, pre-
cipitating new reparation
storm in Germany.
DR.. Voegler, who was colleague Of
DR.. Hjalmar Schacht in the Paris
negotiations, was regarded as guar
dian Of the German industrial inter.
ests. His resignation was attributed
to the following causes:
Increase of the annuities desig-
mated in the Young plan by the
allied experts:
Rejection by the allies of the Ger
man proposal for a moratorium to
assist Germany in meeting the an
nual reparation obligations;
Allied demand that German pay
ments be extended to 5S years.
Violation of Pact
DR.. Voegler contended that the ex-
tension OF payments over So years
was q violation of the Versailles
treaty.
Official announcement of the res
ignation of DIR. Voegler was followed
by wild clamor in the nationalist
press. Some papers denounced the
allies as worse than Oriental cheat
ers. They declare that Germany is
being cheated out of one whole
annuity
An official spokesman frankly
told International News Service that
the situation is critical
PARIS, May % Q.N.S.).--With Of
ficial announcement from Berlin of
the resignation OF DR.. Albert Voeg-
Ter, one Of the principal members
OF the German delegation, the con-
ference Of reparations experts to-
day faced crisis which may re-
suit In complete breakdown.
Long Negotiations
Optimistic spirits around the
council table are hopeful that a
breakdown may be avoided by judi
cious handling Of the situation. but
1t now appears certain that the best
which can be hoped for is a pro-
1onged negotiation, instead of the
speedy settlement Of the vexing
problem which was hoped for.
DR.. Voegler left Paris few days
ago after expressing himself thor
oughly dissatisfied with the progress
of the conference.
The burden Of the whole prob
lem, it appears, win fall upon the
United States, as Germany con.
siders the reservations made by
the creditor allied nations to their
conditions on acceptance of the
American compromise plan almost
totally unacceptable on at least four
points.
viii Not Compromise
They indicate they viii make no
compromise to save the situation,
ana it Is expected they will ask
the American delegates, Owen D.
Young and J. p. Morgan, to induce
the allies to sacrifice their condi-
tions unless the conference Is to
be doomed to abject failure.
However, the allied memorandum
on the subject, which has been
handed to the German delegation,
states that the ''limit of allied
CONCESSIONS has been reached.
In other words, the situation is
clearly an impasse at the present
moment, with the Germans deter
mined not to accept the allied
reservations, and the allies equally
adamant in refusing to modify
therr1..
Need Diplomacy
II Young and Morgan can bring
order out OF this chaos, which has
not been improved at all by the
action Of DIR. Voegler, they may
.we1l be credited with master
piece OF diplomacy.
Germany Is expected to give
official notification today that the
settlement proposed by the allies
absolutely fails to satisfy that
county, and when that notification
has been given, determined steps
viii have to. be taken II break
down is to be averted.
German opposition to the allied
reservations is understood to be
based on the following contentious:
First, they provide for payment
this year OF the full Dawes plan an
ruity OF nearly $500, 900, 900.
Secondly, they do not give Ger
many the right to cease making
reparation payments into the bank
for international settlements in the
event the German government feels
the economic situation does not
warrant continued payment.
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Thirdly, they keep the German
railways under allied power for 81
years. as they provide for retention
1T the 81, ,620. 900, 900 Dawes bond on
the railway, and
Finally, the creditors proposal in
creases the fixed portion OF the
German annuities from the $751;
$4,000 DR.. Schacht proposed, until
IA the twenty-ninth year the amount
Germany would pay Internationally
wou1 be $22S, ,672 900.
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