Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-07-08
FranCo-German Agreement
Writes Off Obligation and
Fixes New Basis.
LAUSANNE TO APPROVE
THE ACCORD TOMORROW
Finishing Touches Being Made to
Text-Berlin to Issue Bonds
for Sum Stipulated.
BY the Associated Press.

by the Associated Press.
LAUSANNE, Switzerland July g.
Frame and Germany have reached a
complete agreement on the issues under
discussion at the debts and reparations
conference, it was officially announced
this afternoon.
Under the agreement Germany's final
reparations payment is fixed at a
nominal 1000, 100000 geld marks (about
s750,000,000). Bonds for that amount
will be issued at a price of 80 when Ger
manys credit permits.
The preamble to the agreement de-
clares that reparations are finally ended
and that new effort in relations among
nations is commenced on the basis of
reciprocal confidence.
Announcement that an accord had
been reached was made while Premier
Herriot of France was holding a final
conference with Prime Minister Ram
say Macdonald Of Great Britain in
the latter's chamber.
The finishing touches to the text of
the accord will be made late today.
WAR Guilt" Ignored.
The German bond issue will be with
held for at least three years. The sink
ing fund is fixed at / per cent. The
bonds will mature in 81 years.
II the bond issue is net floated within
is years the whole issue is Cancelled.
rrttiIfp ioI, a.
so irritating to Germany, is not men,
toned, nor is the Versailles treaty
named but the agreement implies that
the postwar reparations chapter is rel
egated to history.
Chancellor Franz Won Papen of Ger
many cleared the way for breaking the
deadlock with France last night by CIV
ing up Germany's tnsistence on elm
mating the effect Of the war guilt sec
ton
The concession had been the most
stubborn obstacle TO an agreement. 1t
was expected, however, that the Berlin
government would reserve the right to
take up this and other political ques-
tons through the League of Nations by
way Of direct diplomatic representa-
tons.
In some quarters the German an
nouncement was interpreted as COM
plete capitulation by Chancellor Won
Papen. In others 1t was said that, rec
ognizing the firmneSs of French re-
fusal to make concessions on war guilt
and other political questions, he had
given ground in order to save the con-
ference from failure. His action was
backed by report from Berlin saying
the cabinet approved the agreement.
VIII Ask U. S. to Farley.
A resolution asking the United States
to attend a world economic conference.
where the Lausanne convention would
be woven into "a universal accord" was
expected TO be adopted tomorrow.
(The United States Government re-
Gently announced its willingness to at
tend world economic conference, but
vetoed several plans which would have
linked that conference with the Lau-
same meeting)
Mr.. Macdonald and M Herriot were
the two most pleased among the states
men here over the agreement.
The French premier was the center
Of a touching scene in the lobby of
the Beau .Rivage when he embraced
two pretty girls and shouted: "C'est
faitl Cest fait!" ct is done).
AS the statesmen emerged from their
meeting Chancellor Won Papen. who
was walking beside M. Herriot, departed
without comment.
The dramatic agreement obviously
lifted a heavy burden from the should
ers of the delegates, few of whom did
not believe the accord was a real step
toward world recovery.
A session to initial the agreement was
fixed for tonight, with final meeting
tomorrow, when Mr.. Macdonald will
deliver the closing speech and the
French premier and the German chan
ceIlor will give their version Of the &C
cord.
The difficult negotiations since June
IS were concluded in the early morning
hours. after which the negotiatorS set
tied the amount Of bond.
Leon Fraser. American director of the
Bank for International Settlements,
CONTINUED on Page 4, Column D.