Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-04-19
ENVOY DIES
At DEBTS FARLEY.
Lord ReveIstoke Is Victim Of
Heart Attack-conferenCe
Near Breakdown.

ssA n I
Continued From First Page.)
national bank and the plan of pay
nnents with the schedule of annuities
proposed by the creditor countries. 1t
also win comprise Germany's offer, with
an explanation of how the experts
found 1t impossible to proceed with It's
consideration.
The German delegation will be given
an opportunity either TO approve the
document or to submit a minority re-
port. In that case both the documents
will 60 to the governments from whom
the experets received their mission, and
then II will be an affair of diplomacy
to determine the subsequent steps.
Comment by French.
Comment in French circles on the
situation was to the effect that DR..
Schacht by refusing to increase the
German offer In an effort to meet the
allied claims had relieved the French
experts of all necessity Of straining
point and making further sacrifices to
meet the Germans.
In French Nationalist circles DR..
Schacht, In fact, was declared to have
opened the eyes OF the French people
to the real character Of the German
negotiations. These, they said, were
proven materially to tend not only to
debt but also to revision Of the treaty
of Versailles.
The American experts as well as the
others declined to express themselves
as to the situation produced by the Ger
man attitude. Mr.. Young and Thomas
w. Lamont are making no new plans
for the moment, while j. p. Morgan
Is still cruising in the Adriatic. He is
expected back in Paris some time next
week.
Gilbert II Key Man.
8. Parker Gilbert, the agent general
for PREPARATIONS, is the man upon whom
events are likely to center with the
passing of the present reparations COM
mission. Dr. Schacht's declaration that
the reich would ask for the benefit
OF the transfer clause in the Dawes
plan places the burden of decision on
the transfer committee, but 1t is gen.
orally felt that Mr.. Gilbert, as the agent
general, would have the deciding infiu-
ence In all matters concerning applica-
ton Of the Dawes plan.
The French stand all along has been
that II the present experts committee
should fail to reach an agreement, it
would simply mean falling back upon
the terms Of the Dawes plan calling
for annuities Of $500 000. 900 marks
approximately 5000, 900 ,000), which is
far more than even the allied proposal
had envisaged.
AAw
ever, that the Dawes plan provided
rations payments in excess Of Ger
many's capacity to pay and it is upon
this provision that the future discus
sions will probably center.
Procedure Il Outlined.
If the transfer committee decides that
Germany cannot buy foreign currency
and pay cash for part of the annuities,
Mr.. Gilbert is authorized to accumu-
late in his hands German currency to
the amount Of 100000, 900 marks,
equal to two annuities. The capacity
Of absorption in payments in kind Of
some Of the creditors is expected to
relieve the situation as far as cash pay
ments are concerned for q few years
but the question may become acute
ICGHGCtkklS SOltAC Va Vic 0tiACt6 QUILL 90
Great Britain, the second highest
creditor, which Is averse to receiving
any goods on reparations account.
When DIR. Schacht was told that his
stand on the German figures meant
reversion to the Dawes plan, under
which Germany must pay $500, 100000
marks subject to immediate increase
under the prosperity index. he replied:
II understand, but it will be impos-
sible for Germany to execute the Dawes
plan, and she necessarily will demand
that the clause giving protection against
ruinous transfers come into play"
Big Sum Already Paid.
In its memorandum Germany had said
that she already had paid 46, 500 ,000. 900
gold marks (about $1l. 100000 in
cash and kind. This has long been
point Of controversy between the Ger
mans and the allies. The Germans are
credited in the 1922 report Of the Rep
arations Commission with only about
committee office has added $500. 900 900.
But, besides these 10000, 000, 900, Ger
many contends that she should have
credit for 10000, 600 900 more. This
sum comprises about 1900, 000. 900
marks for German property sequestered
and hquidated by the allies abroad,
such as the German property in the
United States seized by the alien prop
erty custodian's office. The balance. of
the German claim consists of some dis
puted credits for deliveries in kind and
the German claims against Bulgaria
and the states carved out OF Austria
Hungary and Of German state property
In former German territory taken under
the pace treaty.
German Stand Stated.
The breakdown yesterday came after
q committee of eight, headed by Lord
Revelstoke and containing Mr.. Young,
had met to attempt reconciliation of
the German offer of. less than $7,000,- |
100000 fpresent value) against the al |
lied terms of around $4,000, 900, 600
present value).
DR.. Schacht almost Immediately said
that under no circumstances could
Germany increase the size of its an
(about $4,000, 000) and for any longer
than 81 years. Even these payments
were possible, he declared, only II the
allies made it possible for Germany to
increase her ability to pay by giving
access to raw materials and other re-
sources Of which she was now deprived.
The inference obtained BY his listen |
ers was that he sought return Of the
Polish corridor, Danzig. the .Saar Valley
and Upper Silesia, or, in other words,
sought to make a business agreement
contingent upon political revision OF
the treaty Of Versailles.
Paris Bourse Heavy.
The Bourse was quite heavy today
as q reaction to failure Of the second
Dawes committee to solve the repara-
lions problem yesterday,
All advances registered yesterday IN