New-York tribune., 1920-07-13
Demand Delivery of Two
Million Tons Monthly; /;
Must Give Their Answer
at Spa at 3 P. NJ. To-day
NEGOTIATIONS Reach
AnotherTe Point
DIR. Simons Protests, Say.
ing Low Production Af-
fectsIndemnityP Payment

SPA, July 12 (By The Associated
Press).-The Allies served an ulti-
matum on the German delegation to
the conference here late this after
noon, demanding that the Germans
agree by o'clock tomorrow after
noon to deliver to the Allies 2,o00,-
600 tons of coal monthly. Otherwise,
the Germans were informed, the
Allies will take measures to enforce
the terms of the Versailles Treaty.
Thus, the negotiations with the
Germans have reached another tense
point. The spirit of conciliation
adopted by both sides has prevented
a break thus far, but the Allies
found it was necessary to issue this
ultimatum for carrying out the
treaty, which would entitle them to
a greater amount of coal than now
is demanded.
Subject Of Three Hour Session
of controversy during three-hour ses-
sion Of Premier Millerand, Premier
Lloyd George, Count Sforza. the Italian
Foreign Minister; Viscount Chinda,
Japanese Ambassador to Great Britain;
Premier Delacroix of Belgium, Kon-
stantin Fehrenbach, the German Cham
cellor, and DR.. Walter Simons, the
German Foreign Minister.
The Allies began by insisting upon q
monthly delivery of 100000 tons.
The Germans offered 100, 900 tons, and
the Allies reduced their demand to
100000 tons.
DR.. simons represented that, coal
being the very foundation of the in
dustrial life of Germany, every ton
that Germany sent to the Allies meant
that much less production. He said:
"My contention is in European inter
ests as much as in the interest Of
Germany, because our payments to
you are conditioned upon our industrial.
production. You want your money. We
want you to have it, but how can We
pay large sums if you take away large
quantities of coal?"
Offer to Increase Deliveries
The German Foreign Minister Of
fered then to increase the deliveries Of
coal from 100000 tons to 1,400, GOO
within six months, and to 100000 tons
within year. This could be done, he
said. only if the Allies made better food
conditions possible for the miners and
contributed raw materials to build
houses for more miners.
The premiers, after prolonged dis
cussion with the Germans, in calm.
businesslike manner informed Chan
Fol ,har oh
the Allies must have their final answer
tomorrow.
If the German reply was rejection.
the Allies, it was declared, would take
measures to enforce their demands,
either by occupation of mining terri
tories or By sendipaB their own coal
commission into GERMANY 20 examine
the situation in the mining regions.
The ultimatum was delivered in zhe
quietest tone by the Belgian Premier,
NJ Delacroix.
AS the meeting dissolved the British
Prime Minister said to DR.. Simons:
Think this over and come to our
terms"
Statement on Reparations
In statement accompanying the out
line of the German governments plans
for reparations, submitted to the
Allied delegates Sunday .pighk the
Germans said their country could
fulfill future engagements only il
they are based on her financial
capacity. The German budget must
balance, the statement insisted, or
there would be rapid increase in
the floating debt and consequent in
fation that would neutralize her capac-
ity to pay. There must also, it was
asserted, be no further diminution an
the fundamental bases of German
political economy, which are already
much weakened.
Assuming that Germanys ability to
pay is used as basis, the statement
asked that reparation obligations be
expressed in annuities, the minimum
OF which would be fixed. and the pbli-
cation to pay such annuities limited
to thirty years. Stipulation was made
that the minimum Of the annuities be
fixed according to Germany's financial
capacities, and, therefore, comprise all
obligations in money and kind, accord
ing to the Treaty of Versailles. This
would relate especially to the under
taking to pay the expenses of the
armies of occupation, which are to be
covered partly by money and partly in
kind, which must, in principle, be
credited according to universal market
prices. Request also was made that
tuo Allies Tx the maximum sum due
for reparations, after payment of which
Germany would be free from any oblf-
cations.
Participation by Allies
AS the economic development of the
rext thirty years cannot be foretold.
the statement asserted, plan must be
worked out by which Allied govern
naents would participate in the im-
prOyement of financial aud ecnrcn,s.,
conditions in Germany
Experts from Allied nations and Ger
many should meet as soon as possible,
the statement said, to fix the amounts
OF the annuities to be paid and 10
pass on the securities to be demanded.
Germany's sovereignty in financial mat
ters must not be infringed upon in
decisions regarding this featuwe Of I'd.
Justing reparation payments. These az
perts should also fix the maximum supa
20 pc psid to the Allies by Germany.
Material which Germany Is to deliver
to the Allies under the peace treaty
xor reconstruction qf deva ted rs.