(2 of 3)
1) In event of an economic crisis in Germany, the creditors agreed to allow a two-year inner moratorium to Germany on conditional payments until German credit should be reestablished.
2) The creditors agreed to give up their lien on the German state railways (established under the Dawes Plan) in return for a claim on the gross income of the railroads. That income is now between 144 and 168 millions per year. So long as the railroads continue producing such revenue, they will furnish nearly all the unconditional portion of each annual payment.
3) Germany's large payments under the Dawes Plan may cease on Sept. 1, instead of on Jan. 1, 1930, as the creditors originally demanded.
4) Germany to cease paying the costs of the Rhine Army of Occupation after Jan. 1, 1930. This points to a speedy evacuation of the Rhineland by all except the French, who, militarists pointed out, will find it just as cheap to support their army in Germany as to support it at home.
Belgian Francs. The item left unsettled, last week, as Draft C was prepared for signature, and which had threatened at the last minute to delay the signatures of France and Belgium, was this:
When the Germans occupied Belgium in 1914, Belgian gold and money was removed from Belgian banks, and German marks planted in their place. With the fall of imperial Germany, the marks became worthless.
From the beginning of this year's conference, peppery Emile Francqui, head of the Belgian delegation, demanded complete redemption of these worthless paper marks, which Germany's hard-driving Dr. Hjalmar Schacht consistently refused to grant. Bitterly personal were the Schacht-Francqui set-to's. Belgium's Francqui went so far as to accuse Germany's Schacht of having taken part himself in the pillage of Belgian banks as a member of General von Bissing's staff.
Chairman Owen D. Young saw the impossibility of any immediate agreement on this point, decided that the matter should be settled privately between the Belgian and German governments.
Peppery Francqui was not satisfied. He swore roundly that he would not sign any debt agreement whatever unless the Belgian mark claim, amounting to an additional six million dollars per annum for 37 years, was settled. Of grave importance was the arrival in Paris of Belgium's Prime Minister, Henri Jaspar, to confer behind locked doors with Delegate Francqui. Emile Moreau, chief of the French delegation, announced that he too would not sign Draft C of the Young Plan unless the Belgian mark claim was settled.
In time to prevent the scrapping of Draft C and the probable disruption of the conference arrived a note from the German government to Dr. Schacht, authorizing him to pledge settlement. Through Chairman Young the note was immediately transmitted to the Belgians.
Secret Agreement. Quite as important as the delegates' agreement to the Young Plan was an understanding, reached semisecretly by the German, French and British delegates, regarding Europe's debts to the U. S. It was privately agreed that in case of any future reduction or cancellation of Allied war debts by the U. S. Government, Germany's reparations payments would be reduced by two-thirds of the amount involved.