The Washington herald., 1921-05-01
The New Reparation Proposal.


reparaton is due by Germany under article 233
Of the treaty is I32ooooooooo gold marks about
$3Iooooooooo
AT the Paris conference January 2o the allies
agreed that Germany must pay period Of forty
two years the present value Of which is about
$aIooooooooo plus an export tax OF ~ per cent,
AT London on March Germany offered to pay
amount with a present value OF approximately $780,,
100000
The German proposal. sent to the United States
on April 26 stripped Of its conditions. the real
ing of which not yet clear, would have present
value Of approximately $I2,soooooooo
In this brief summary of the allied demands and
the German proposals the amounts have been for the
sake of cearness, converted into the estimated equiv
aent in dollars For the same reference the
gross amount that the total annutes fora period of
years plus interest. has been omitted ....
Because of the conditions attached to it and be-
of the methods by which payment is to be made
1t is impossible to estimate closely the exact amount
which Germany would actually pay under the
proposals II is obvious, however that this offer ex-
ceeds that made by the Germans at London on March
l. but falls short of the demands framed by the allies
on January ao at the Paris conference. By the new
proposal Germany would fix her total liability at So,-
ooo.oooooo gold marks, which, paid over period OF
years with interest would amount to total Of 100000
gold marks In terms of dollars this would amount
to capital sum Of something over $4,000 100000 or
q gross sum of about $4,000 100000 depending, Of
course the number Of annutes and the rate of in
terest s'+ .,.... ...
The conditions. under which Germany would make
an engagement pay this such that the to-
tails as given above might be considerably altered.
For example, the Germans propose to raise part OF
the 81 1000 payable by means OF nterallied
loan bearing per cent interest Germany appears to
assume that such loan would be taken up by the
American government at terms as favorable as those
granted to the allies during the As it is certain
tb.tk latte SfatAs v0ul n0f
obig it is also certain that the German secnrty
at per would be taken up privately only at
very considerable discount This would reduce the
capital such extent that 1t might not actually
amount to more than $7ooooooooo $8yooo,ooo.ooo.
In this case the German offer would amount to
more than that made by, them at London, which was
summarily rseced by the allies wholly inadequate.
Other conditions made by Germany would release
the private property of Germans abroad which is now
being held by allied and associated governments as
security for the claims of their nationals against Ger
many The acceptance Of the German proposal would
also mean the end Of further penalties and would
ate an international committee to pass Germany's
capacity to pay. Such conditions obviously
pable of affecting Germanys total liability to such
extent that there is possibility that the allies will
accept the offer as it now stands / a.,',. : ..'.r
Before the German proposal could be accepted
basis of negotiations many points, which
either omitted not clear in the German note
must be cleared up. There was specific mention
OF the $3ooooooooo due May I, although the offer to
pay Iooooooooo marks Immediately may refer to that
liability. There no statement as to the number
of annuities to be paid. There equivaiei. 70
the IL per cent export which included in the
Paris conference plan. 1t stated whether the
total Offered includes excludes the amounts Ger
many claims to have paid already. The German con-
dons regarding the removal Of restrictions the sus-
pension of penalties and her scheme for interna
tionai loan require elucidation These omissions and
obscurities were BY. means balanced Offset by
the positive, engagements which include in addition to