FRANCE AND BRITAIN

Evening Post, Volume CXII, Issue 157, 31 December 1931, Page 7

FRANCE AND BRITAIN

REPORTED AGREEMENT

COMING CONFERENCE

United Press Association—By Electric Telegraph—Copyright. (Eeceivcd 31st Decornber, 8 a,m.) LONDON, 30th December. The "Daily Telegraph's" diplomatic correspondent says that the outlook for the International Reparations Conference has undergone an unexpected and far-reaching change, as there is now a strong prospect of a preliminary agreement between the Anglo-French Treasury experts, which the conference will probably accept. The correspondent forecasts that the conference's task will be restricted to the discovery of a purely provisional solution of the reparations problem broadly following these lines:— Firstly, Germany to receive a three years' moratorium on the conditional portion of the Young Plan annuities, this being the mean of the British demand for a five years' moratorium and the French demand for two years. Secondly, though Germany would be required during the moratorium to pay the unconditional portion of the annuities to the Bank for International Settlements, the money would be relent to the German railways, thus avoiding any external cash payments. Thirdly, as compensation to France and some smaller beneficiaries, Germany would be asked to make limited payments in kind. Fourthly, the Creditor Powers to pro-1 mise a re-examination of the German capacity to pay reparations at the end of the moratorium.