Arizona republican., 1921-03-08

come to this decision in the interest oI peace, and despite the fact that our acuon Is liable to a good deal of mis- Tn our countries. we have aoe an effort to secure better un- uerstandlng and it is not for lack of eifort and discussion that I have to announce on behalf of the allies this Iaiiure to come to an understanding with Germany"
 Explaining why the latest proposals or Dr. Simons were inadequate. Mir Lloyd George said it was essential in the interest of peace that there should De a definite settlement. of questions between the allies and Germany.
 Scoffs Year Plan
 That is an appeal to common sense,'' ne continued. "The experts made some suggestions about trying to agree for i've years, but that was not a plan adopted by any conference of states men We wanted to know where we stood"
 He pointed out that pr. Simons' ac ceptance of the Paris proposals for five years was apparent but not real It was subject to conditions which might terminate in a few weeks. It was sub Ject to the plebiscite in Upper Silesia. IT the plebiscite were adverse to Ger many she would be justified in saying: Germany is deprived of territory upon
 
 nuities. and therefore the agreement is at an end.''
 He continued:
 The German proposals are vague. There is nothing the allies could raise one paper franc--upon let alone a gold mark The proposal that Germany should pay annuities for five years by means of a loan is disquieting. She is thereby mortgaging her income for the years that come after to pay the an- nuities of the first five"
 The premier spoke about the enor nous sacrifices it would be necessary for Germany to make to pay the an- nuities for the first five years and added:
 On War Burdens
 This year we have million unem- ployed as result of the war, but ws have to find for paying our debt charg- es and pensions and disability allow ances five hundred million sterling. If Germany carries out this year the Paris proposals. she will have to find one hundred and twenty million ster- ling-one-fourth the sum Great Britain alone has to find.
 France, in addition to war charges and pension list. has to find twelve bil- lion francs for repairing her devastated area. Germany therefore will have to find this year one ninth of what France
 
 effort Germany puts forth is collosal sacrifice. It shows Germany has not realized the essential facts of the situ- ation.-
 The allies could not enter into dis cussion upon the basis that Germany was not responsible for the war. he de- clared. The Paris proposals, he said, represented a considerable abatement of the full claims but that abatement was made to secure a settlement
 We are willing to discuss with Ger many the length of the period of an- nuities." he continued We are willing to discuss any other method besides the F per cent tax for adjusting the annuity to German property. 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.
 Want Permanent Settlement
 Until we get proposals from Ger many which means permanent settle rnent there can be no peace, he de- clared.
 We must insist upon a settlement now of two questions" said Lloyd George. The first is the amount of payments. or the factors which shouie determine those amounts automatically according to the prosperity of Ger many. What those factors should be we are prepared uO nlSCuSS.
 The second point is the method oi payment. A mere paper agreement promising payment is unsatisfactory and insufficient. It means endless dis putes.
 Tn the interests of the allies. of Ger many. and of the world. we must have a settlement. definite settlement and an immediate settlement"
 Simons' Reply
 nr SimOuS reulvipae fO Air I1Oy( George. regretted that the German pro posals had been misconstrued.
 For us, just as for you" he said the disadvantage of q provisional set tlement is beyond doubt. But we havr taken refuge to such provisional set tlement under the pressure of you ultimatum, which forces us to conn forward with definite proposals. w should have preferred to put before yoi a plan of total arrangement" He ex plaineds that he had no second pro posal. He had been charged to asl for a brief delay to get in touch witt the Berlin cabinet. but he added:
 We were refused even this shor delay.
 From this fact" he continued, "i appears there Is no foundation for tn fear that we should want to make us of the provisional settlement to reac
 
 years.
 'On the contrary, the German natio has undertaken its obligation of mak ing reparations and it is ready to fulfi the whole of this obligation to tn limits of possibility. We are read, therefore, to enter into the suggestio of the president of this conference furnish the allies with part of tf means which would be required f reparations by laying aside part of tf purchase prices of German goods ds livered into the allied countries for tl reparation account
 T can only say l regret that tn proposal should have been discredite in public opinion in Germany by havir been placed by you among the san' tlons to be taken against Germany. W agree with the president of the col ference that fl would be advisable, quickly as possible, to get the fixt sums determined.
 Will Appeal to League
 we further agree with your inter tion to set up an examination syste of the fixed and varied payments the different countries. These point in our opinion, should be deliberated by joint committee of experts as sot as possible.
 T feel obliged, when the sanctio are definitely going to be put into for against us, to enter once more with due anarbasis a urotest against yO