Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1919-06-17

is to fix what is to be paid, satisfy
itself that Germany can pay and re-
port in case Germany does not pay. i"
The commission cannot prescribe
or enforce taxes or dictate the char
acter OF the German budget, but may
examine the latter to see IL ans
modlncation is desirable, Lroba bly,
in Germany's interests, and to be as
sured that German taxation is Mt
least as heavy as the heaviest Allied
taxation.
1t is pointed out that not opiy are
the conditions not incompatible with
the creation by Germany of a COM
mission to represent. her iii dealing
with the reparation commission and
Tor such cooperation as NAV he
necessary, but it is greatly TO be de-
sired that she will take eactly that
step.
May Offer Lump Sum
The powers are willing that with
in four months of the signature of
the treaty Germany may submit
any proposals she may choose to
make. In particular she may Of
fer a lump sum for all or part of
her liability. undertake to recon
struct all or part of damaged dis
trict offer labor, technical service
or material for reconstruction, or,
In short suggest any feasible plan
to simplify the assessment of dam
age, eliminate any question from the
scope of the inquiry. promote the
performance of the work or accel-
crate the definition of the ultimate
amount to be paid. Germany must,
however, negotiate direct with the
powers concerned before making
the proposals, submit them in unam-
biguous form and accept the repara-
tion clauses as matters beyond dis
pute. No arguments or appeals di-
rected to any alteration will be en-
tertained.
Invited to Give Evidence
Within two months thereafter the
Allied and associated powers will
answer such proposals and agree to
consider seriously and fairly any
suggestions made. 1t is said the
problem is largely one of statis-
tics, of which the powers have-Ee-
eeived but one side. Germany is
invited to .pNbduce evidence which
will accelerate final decision.
The reply says that the Germans
made no definite offer as to repara-
tons, but gave only vague express
sions of willingness to do some
marks which was mentioned in the
enemy counter proposals. is said
to give the impression of an extern
slve offer, which upon examination
1T proves not to be. Interest was
not to be paid and until 1928 there
would be no substantial payment.
after which there could be a series
OF underlined instalments ~Eunning
over nearly half a century.
Declaring that the resumption of
German industry is of interest to
the Allies, as we'll as to Germany,
the reply declares that commercial
facilities will not be withheld from
Germany, but they will afford to
Germany facilities for food supplies,
raw materials and overseas trans
port, under conditions which can
mot be laid down in advance"
Must Sign Treaty
Meanwhile, the Treaty must be
signed" the reply declares. THE
burdens of Germany undoubtedly
are heavy, but they are imposed
under conditions of justice by peo-
pies whose social well being and
economic prosperity have been
gravely impaired by wrongs which
it is beyond the utmost power of
Germany to repair"
In the financial section of the re-
ply it is stipulated that reparation
must be made prior to the settle
ment of all other German public
debts, with such exceptions as the
commission may approve. Payment
for food may also be a first charge,
and gold may be exported on ap-
proval. Germany must pay the ex-
pense of military occupation, as an
essential guarantee of peace, and
war material surrendered after the
armistice cannot be credited against
reparation. Liberated territories
will bear their portion of the pre-
war debt, but will not assume any
part of the war debt itself.
Powers Defend Rights
after the events OF the war"
it is said, the powers have the
right to demand that Germany be
no longer Intimately involved in
their financial or economic life, or
in that of Germany's former allies
or Russia. AS the greater part of
Germany's foreign securities must
be liquidated, the protection of Ger
man holders will no longer justify
German participation in interna-
tional organization"
Reserve Right of Demand
The right is reserved to. demand
of Germany also her credits in Aus
tria, Hungary, Bulgaria and Turkey.
In the discussion of the economic
clauses. the reply states that the
principles enunciated by President
Wilson and embodied in the covenant
OF the League of Nations as to the
equality of trade conditions will be
brought into effect when the world
returns to normal. but in the mean
time a transitory regime is essential
to save certain allied states from a
position of economic inferiority be-
cause of the damage done to their
territories during the war Reci-
procity is impossible at present and
a general and indiscriminate reap
plication of mutilateral and bilateraIi
treaties cannot be accepted.
Consular relations are not recipro.
cally stablished. owing to the war
activity of Garnnan cana,xIa E~iv-t>