The New York herald., 1921-01-20


CopEgsDhf s4, by THE NEW York HERALD.
New York Herald Bureau,
Berlin, Jan. 10.
The German Government has ac-
cepted French proposals as basis for
negotiating q reparation settlement
with the Entente Allies. France and
England have agreed that the repara-
tions sum shall not be set at the pres
ent time, but instead, that a compre-
hensive plan be worked out for repara.
tions payments in goods and raw ma
terials in annual amounts for period
OF years. Accepting this as a basis for
negotiations, Germany has set several
conditions, according to the Tdegliche
Rundschdu. These conditions. 1t says.
are:
/. That Upper Silesia be retained by
Germany.
2. That the army Of occupation be
reduced
3. Shipping tonnage be restored to
Germany.
Would he Loss to America.
1HE NEW 1Okk ftERAlDf
ent here is In a position to say authori-
tatively that Che French proposals,
should they be accepted finally In thet'
salient points. would result in such a
close ipterlocking Of French and Ger
many industry that they would entail
practically loss to America Of both
France and Germany as heavy buyers.
They would put an end to the pos
sibility of America becoming the chief
lender to Germany and the chief
market for Germany's manufactured
goods.
II Germany accepts the programme.
the long arguments over reparations will
be settled and Germany will virtually bo-
come the economic subject OF France
Reparations would in large measure be
paid by the foreign trade OF the new
partnership.
Such a settlement would on one hand,
remove the hostility between France and
Germany and so so far towards safe
guarding European peace On the other
hand. II would promptly wreck the plans
Of American business men to reap great
advantages from the power now pos
sessed by the United States and to
profit from the rehabilitation Of
Germany.
Direct decentralization.
The French proposals to Germany are
IN the form of a practical method for
direct naturalization which In itself
appears TO be routine detail. BY the
scheme those Frenchmen who were in
dustrial losers by tho war would be
authorized TO replace their property des-
troyed through dealings directly with
German sellers. Then these buyers
would present the bills for their pur-
chases directly to their local French
bank. and since they had suffered losses
by the war they would not have to pay.
Their local bank would send the bills
TO the Bank OF France. which In turn
would pass them through the Repara-
tions Commission to the Reichsbank in
Germany or similar institution, which
would pay the German sellers for what
the French had purchased. Meanwhile
the Preparations Commissions checks
on the sum from reparations which the
commission would have to It's credit
with the Reichsbank could be used for
all allied purchases In Germany.
This is ono OF the provisions Of the
proposed arrangement which makes the
French scheme SO significant. The idea
is that in all deals above a certain
amount which allied business men make
with German business men they can
enjoy these special banking facilities.
while the Reparations Commission de-
ducts portion OF the salee price--say
20 or 25 per cent--which is placed to
the credit OF Germany's Preparations
account.
To Make Plan Attractive.
IL is the purpose OF the Allies to make
this form OF trading with Germany as
attractive as possible, either by reduc.
inS customs charges or by making spe-
~ exchange rate concessions. This
cfS-,n opened with the Reichsbank by
the Reparations Commission could also
be used for recruiting laborers for the
rebuilding Of the devastated areas OF
France. to engage directly German
workers and TO pay for lodging and
board OF these workers only. while the
Reichsbank pays the bills for the sup
port OF the working mems families at
home.
One OF the most important provisions
permits corporations in allied countries
70 take shares of German corporations
on the basis OF this reparations credit.
These shareholders would never be
forced into German companies, but
would be taken I'm voluntarily. Ths
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