New-York tribune., 1920-05-19
Payment by Berlin of
I2O Billion Gold Marks
as Indemnity Will Gov.
er Period of 80 Years
Priority i'm Claims
Is Denied France
French Debt TO England
Transferred to Former
Foe by Premiers' De-
cision: Loan Proposed
By Ralph Courtney
Speciai Ca5le to The Tribune

Copyright. 1920. New York Tribune Inc
PARIS. May 19.-I am able to say
on the most reliable authority that
the German indemnity fixed at the
Hythe conference between the
French and British premiers was
rot 12O,OO0.O00,000 gold marks to be
spread over thirty or thirty-three
years but sum which has d pres
ent discount value Of 100000 100000
gold marks. In other words. Ger
many must pay 120,O00,Oo0,OOO plus
the discount charge, which would al
low the Allies to make financial ar
rangements to receive 10000, ,OOO,-
coo gold marks in cash.
Moreover, it is understood, this
sum shall be considered Independent
oi the question of restitution of iden-
teal Or similar objects, such as coal,
which the Germans must deliver
during certain period, as provided
in the treaty.
In short, Germany will have to
pay during the next thirty years, not
}30,000000000, but something near
er $60,0OQ000,00O.
To this proposition, put forward bv
France toward the close of the con-
ference. England raised no objection
Il principle. She requested, however.
that interest be calculated at the rates
provided in the peace treaty in the
section referring to the gold bonds
~hich Germany was to issue-that is
70 say no interest the first year, then
- per cent and finally per cent.
Division Over Priority
Upon the arrival of the French at
Hy-he, the English made an indemnity
proposal along the lines of previous
conversations in London, that Germany
pay 100 billion gold marks, spread
over period of thirty years. Lloyd
George declared at the same time that
England could not admit of any abso-
Lutte priority for the French In repara-
tons. As late as the day before yes
terday Lloyd George repeated he could
not obtain the consent of the colonies
mat their pensions give place to
French reparations. Such was the
deadlock which seemed likely to
threaten The negotiations.
Under agreements already concluded
BY former Premier Clemenceau France
was to receive So per cent of the Ger
man indemnity, Britain 25 per cent,
leaving 20 per cent to other Allied
countries. England. therefore, offered
10 france only iifty-fve billion gold
marks IN thirty years, which, dis,
counted to-day. would mean only about
tweniy.eight billion gold marks. Pre-
mler MlIlerand then made the French
counter proposal.
p Mllerand demanded on behalf of
france 100 billion gold marks at the
present discount value, TO be paid in
'hirty to thirtythree years. Such
sum Is calculated 10 indemnify France
70 within about ten billions of the
ahoant necessary to cover her pensions
ana restore the devastated areas on
provisional estimates now available
200 Billion Francs to France
frances 80 per cent will give her
soo soout 66 billion gold marks, or nearly
s%0 olIllon francs at the present rate
l., eAchange. For purposes of calcu-
mI0n, the dollar is taken as a stand
GU a.u Oh gold value, and dollars to-day
~ae worth about three times their
norma. normal value in francs. The French
e esrmate the capital necessary for the
Saiiheht OF national pensions at 5S
NJ oi'!lSn .S francs, while provisional figures
raooh Ie amount required in reparations
Fr FSa.h total of 152 billions. Thus
lance lance will have about 200 billion
~ lanes to cover the estimated needs
h;r;ppee pensions and separations of 21O
0l4ons Mons reqnired.
wonIs ,ns aiscounting of the German debt
VIII WHY De done with international loans,
I,'eoy Germany also will benefit.
'his arrangement France will
tContlnued page six