New-York tribune., 1920-07-02
German Experts Advise
Government Virtually
to Refuse Payment of
Repara'ions as Pledged
Memorandum is
Handed to Allies
pIillerand Purposes TO
Threaten Seizure Unless
Teutons Alter Policy
By Ralph Courtney
Special Gable 10 The Tribun,


Copyright 1920. New York Tribune Inc.
BRUSSELS. July 1.-The Ger
mans placed in the hands of the
French government at midday to-
cay memorandum on reparations
which indicates that the German
plan will be to meet the Allied de-
rlands at Spa with reply which
practically amounts to a refusal to
pay the bills submitted by the Al
lies.
In such an event France intends,
with the aid of Belgium, to take
payment for reparations by annexa-
ton OF the Saar Valley and occupa-
ton Of the rich coal basin Of the
Ruhr Valley.
Such IS the grave staation which
has arisen on the eve of the first meet
ine between the Supreme Allied Coun-
ell and the representatives OF Germany
The memora ndum delivered in Pre-
mier Millerand's hands by the Germans
covers thrty-tvo pages. 1t is not
s.sned by -he German government, but
is presented by that government as the
opinion Of their experts. who have
weighed the situation. The document
is signed hy Dernperg, Deutsch and
other leading German industrialists
fnanciers ard experts.
Asks For Concessions
The contentious of the memorandum
are such as to mean that before Ger
many can pa anything approaching
the sums required by the Allies she
wants concessions in the way of raw
material and finances. and even terri
torially. which practically amount to
scrspping large portion of the Yer
saues treaty.
More hope for satisfactory settle
nent Of the present differences would
eylst il the German memorandum even
approached the Allied ideas The Ger
mans endeayor TO show that the sltua-
ton in Germany has become SO bad
that, far from being able to pay
10000 100000 gold marks. originally
spoken OF BY Count Won Brockdorff-
Rantzap, head of the German delega-
.lon at Versailles, they are now no
longer able to make any substantial
proposal whatever.
On the other hand the Allied ex-
rerts have reached the solution that
the German Indemnity should be paid
in fixed annual installments of $1,000
100000 gold marks each for thirty
I've or thirty-seven years and an
cher extensive annuity i'a addition
which shall correspond to Germany's s
power to pay. This second annuity,
based upon the index figure of Ger
Ay prosperity. may mean any
thing from an additional 1.OO0, 900 900
t. i,o00.o00,000 gold marks annually.
France to Ask Guarantees
When. ss it is now expected, the Ger
mans refuse to make serious proposals
al spa, the Allies Will present their de-
many must take upon herself further
engagements guaranteeing that the
Allied payment Will be met. For in
stance, Germany must turn over her
customs receipts and other national
sources of revenue as guarantees.
In view OF the present grave out
look Premier Millerand is reminding
Lloyd George and the other Allied
leaders OF the engagements they took
a. San Reno to enforce the treaty
II necessary by further occupation Of
German territory Millerand does not
desire this solution, and has not yet
lost all hope that some other arrange
nlent will be possible. He realizes that
Germany can only pay the reparations
by means of her labor and that occupa-
ton OF the Ruhr Valley by the French
would make it still more difficult to
bring abou. economic entente between
France and Germany which he also de-
slres
Nevertheless. France under Miller
and's leadership will not finch--if the
occasion arises-from seizing the Ruhr
Valley in the event the Germans show
determination to refuse to carry out
their agreements.
Britain Sends 140 Delegates
The meeting of the Supreme Council
which opens here tomorrow Will be
the largest held since the peace con
terence. The Allied Premiers and THEN
Continued on page fve)