Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-05-25
HOPES FOR DEBT
SOLUTION GLOOMY
Eleventh.Hour Conversations
Continue-Schacht Deci.
sion Is Due by Monday.

BY the Associated Press.
PARIS, May 25.-The fifteenth week
Of the reparations conference was draw
ing to q close today In deep gloom.
Eleventh-hour conversations In an eff
fort to find q solution for the long
pending reparations problem continued,
but nobody was willing TO say that there
seemed much hope Of success.
DR.. Hjalmar Schacht. head OF the
German delegation, talked with Owen
D. Young this morning and resumed
their conversation after lunch. They
discussed mostly how the committee 5
report to the respective governments
shall be drawn, setting forth agreement
on some points and disagreement on
others.
All the experts have agreed that the
committee must separate with the best
possible feeling. so that the threads of
the negotiations can be taken up by the
governments with better chances of set
Ting the problems that will still remain
after the committee gets through.
There was some talk of continuing
the conversations until after the Brit
ish elections, but the experts declared
that politics never entered into their
calculations, and that they would get
through their work as soon as they
could.
Up 10 DR.. Schacht.
DR.. Schacht has before him probably
the most dificult decision Of his life. In
1t, no matter what It's character, will be
bound Germanys and Europe's eco
nonic future for decades to come.
1t appears that DR. schacht must
answer, either today, tomorrow, or Mon
day.
Briefly, the reparations parley had
stmmsred today down to acceptance or
creditor nation delegates with the
understanding it was their last word,
and that no further compromise or
concession on their part was possible.
The offer entails annuities continuing
through SO years. starting at 1880
0oo, 900 marks (about S492 ,00o, 00o) in
settlement Of claims against Germany
arising out Of the war. In addition
tional annuities Of $4,000, 900 marks TO
Belgium to cover depreciation Of Belgian
currency during the German occupa-
ton, conditions making q large part Of
the annuities unconditional to permit
connmercialiZation. and refusing certain
German reservations, previously made.
sl0s,0o0,0oo Reduction.
The annuities proposed are smaller
by $50 ZOO, 900 marks, or $l09. 900 900
than the standard annuity under the
nuities TO run indefinitely. without Ak.
ing any total debt, amount or date for
termination Of payments.
With Characterization Of a large
part Of the new annuitiee. however,
Germany would surrender protection
afforded by the Dawes plan against
economic crisis and, since bonds must
irrevocably be paid to sustain national
credit, would lose the chance that some
day there might be general cancella-
ton Of political debts growing out Of
the war.
When DR.. Albert Voegler. his coll
league on the German delegation here,
resigned Thursday rather than submit
to the allies terms, DR.. Schacht could
infer the threat Of the powerful Ger
man Ruhr tndustrialists that the terms
were not acceptable to them. Refusal
Of the German government, under their
pressure, to accept the settlement II he
should agree to them. and his own dis
Bile eventualities.
II he accepts the creditor nations
final offer. based essentially upon a So
called compromise by owen D. Young,
American chairman Of the conference,
and it Is ratified at Berlin. his nation
will assume Q debt burden Of something
less than $4,000 900 900 present or cap
ttal value. DR.. Schacht has been told
that grandchildren Of living German
children will still hear charges the set
tlernent was not the best possible OBJ
tainabie.