, 1921-03-10
allies, Rejecting the Counter Pro-
a posal of the Germans,
Issue an Ultimatum
WILL OCCUPY RHINE CITIES
Armed Force Will Be Applied Imme-
diately-French Troops Ready to
Move-President Harding's Inau-
gural Address Indicates His
Attitude Toward League
of Nations.
BY EDWARD w. PickARo.

h0lOSSal, which used to be the IA
vorite adjective of the Germans, may
well be applied to their nerve as dis
played in the counter proposals on
r~eparations, submitted to the supreme
council in London by Foreign Minister
Simons and his colleagues. The world
had expected from them something
Inadequate in the way of an offer, but
the insolence of the proposal was
amazing, even to unofficial Germany.
Lloyd George and BRAND heard 1t with
~nl-concealed derision, and the formal
statement of the allies was that ut
does not merit either examination or
discussion"
This was followed by an ultimatum
In which the German delegates were
informed that II Germany did not ac-
cept the fundamental conditions laid
down by the supreme council in Paris
h allies would take immediate steps.
First Of these steps will be the u
ton by allied troops Of the cities of
Duisburg, Dusseldorf INT Ruhrort !;
second, each allied country will place
on German merchandise such a tax as
II may deem proper; third, a customs
boundary will be established along the
Rhine under allied control. Germany,
said Premier Lloyd George in his reply
to h German proposal, would be per-
mitted TO suggest no notifications of
the Paris decisions except as to con-
ditions of payment.
Doctor Simons answered that the
German position had been misunder-
stood, and that he would reply on
Monday to the ultimatum.
Briefly stated, Simons proposed that
Germany pay the allies as wal repa-
rations about 10000, Oo0, 600 gold marks
approximately $500, 0OO, OOO-which
Is about one-seventh Of the sum de-
manded by the allies. Also, the offer
was conditioned on two provisions,
that Germany be accorded free com
mercial privileges throughout the
world, and that Upper Silesia, where
a plebiscite soon Is to be held, shall
remain German.
Especially impudent was the sugges-
ton to capitalize Germany's repara-
ton payments through an i~nterna-
uonal loan to be divided among allied
countries and held free from taxation
In all countries. This meant that the
Germans want the allies to furnish
them the money to pay their debts by
allowing the Germans to offer 30 at
tractiye nj investment that IL would
outshine other securities and be made
still more attractive through the sur
render of tax revenues by the allied
governments.
Meanwhile the French, anticipating
the outcome OF the conference, were
getting ready to enforce payment by
Germany. Their plans for military
action were prepared and submitted
by Marshal Foch. aud after prolonged
discussion Lloyd George was per
suaded TO agree to Great Britain's par
ticipation In the use OF armed force.
A French officer In London said French
long-rnnge guns had already been
moved forward to n position from
which they commanded Essen where
the Krupp works are located. Field
artillery, cavalry and tank and mr.
mored car formations were held in
readiness for the advance, and the air
squndrons were awaiting the word to
take on" At Coblenz II was stated
that the American troops, In the event
Of an allied advance, would merely
continue to occupy the actual lines
now held by them.
Belgium IL ready to act with France