Evening star., 1921-03-08

lAotN DON, MaFcu iSloS VI
George in his speech announcing that
the German proposals were not ac-
ceptable. said:
I'VE all deeply deplore having to
come to this decision in the interest
of the peace of the world. and. de-
spite the fact that our action is liable
to a good deal of Misrepresentation in
our own countries. we have made an
effort to secure a better understand
ing. and it is not for lack of effort
and discussion that I have now to
announce on behalf of the allies this
failure to come to anything like an
approximate understanding with Ger
many"
The prime minister pointed out that
DR.. Simons' acceptance of the Paris
proposals for five years was apparent
but not real 1t was subject to con-
ditions which might make it uncer-
tain, which might terminate it in
few weeks. 1t was subject to the
plebiscite in Upper siiesia If the
she would be justified in saying: Ger
many is deprived of territory upon
which she depended to pay those an
nuities, and therefore the agreement
made at London is at an end
Proposals Called "Vague.'
Mr.. Lloyd George continued: THE
German proposals are perfectly vague.
There is nothing the allies, especially
those who want to raise money for
repairing their ravaged country, could
raise one paper franc upon, let alone
gold mark. The proposal that Ger
| many should pay annuities for hve
years. not out of revenue, but by
means OF a loan, is disquieting. She
is thereby mortgaging her income for
| the years that come after in order to
pay the annuities of the first five
There are certain significant SEN
| tences used by DR.. Simons which show
| that Germany has not yet faced her
problem"
The prime minister spoke about the
| enormous sacrifices it would be
| necessary for Germany to make in
| order to pay the annuities of the first
five years and added: 'IfUpper Silesia
is torn entirely from the side of Ger
many the latter will have a. popula-
cess of Great Britain. including Ire
land. This year We have a million
unemployed as direct result of the
war, but we have to find for paying
our debt charges and pensions and
disability allowance 500,000,000 ster-
| ling. If Germany carries out this year
| the Paris proposals she will have to
| find 120,000,o00 sterling-one- fourth
| the sum Great Britain alone has to
| find.
! Compared With French Problem.
| France in addition to war charges
| and pension list, has to find twelve bill
| lion francs for repairing her devastated
area Germany, therefore, will have to
| find this year one-ninth of what France
| has to find and we are told that the
effort Germany puts forth is colossal
! sacri6ca 1t shows that Germany has
not yet realized the essential facts Of
| the situation.
I'VE are willing to discuss with Ger
| many the length of the period Of an
nuities," he continued, I'VE are willing to
discuss with Germany any other method
besides the IL per cent tax for adjusting
| the annuity to German prosperity. DR..
! Simons is not really In a position to
| negotiate; he is returning to report to
public opinion, which is not ready to pay
| this debt
| Until we get proposals from Ger
| many which mean a permanent set
! tlement there can be no peace" he
declared. I'VE must insist upon a
settlement now of two questions.
First is the amount of payment. or
the factors which should determine
| those amounts automatically accord
ing to the prosperity. What those
factors should be We are prepared to
discuss.
"The second point is the method of
payment. Mere paper agreement
promising payment is unsatisfactory
and insufficient. It means endless
disputes.
Two Questions to He Settled.
These are the two questions that
must be settled between Germany and
ourselves. and settled immedia tely.
In the interests of the allies. of Ger
many and of the world we must have
a settlement, definite settlement and
an immediate settlement.
Proposals such as those we heard
today are not a settlement. They
simply evade and postpone a settle
ment, and very regretfully we have
reached the conclusion that the sanc-
tions must be put into operation i'm
mediately."
Dr. Simons responded briefly:
'If I am expected to make a short
statement in reply, may / ask permis-