Evening star., 1921-04-04
GERMANY IS TOLD
j. s. BACKS ALLIES
IN DEMAND TO PAY
Memorandum, However, Ex-
presses Hope tor New
Reparations Schedule.
REPLY TO PLEA ADMITS
SIMON'S SINCERE MOTIVE.
Berlin Minister Suggests Interna-
tional Loan Constitutes Only
Solution of Crisis.

tional Loan Constitutes Only
Solution Of Crisis.
Formal statement of the attitude of
the United States as to German rep
arations is contained in an exchange
of Communications with German gov
ernment officials made public today by
the State Department. They are in
the form of memoranda transmitted
through Loring Dresel. American high
commissioner at Berlin.
The German communication. dated
March %. was written by DR.. Walyer
Simons, German foreign minister. and
asserted it was entirely clear" both
to the government and people that
Germany must make reparation to
the limit of her ability to pay" but
sought examination by unbiased ex-
perts" to determine the extent of her
ability.
Stand In Positive:
In his reply. dated March 20. Secre-s
tary Hughes expressed pleasure at
Germany's 'unequivocal expression
OF its desire to pay to the limit Of
ability. and declared the United States
allies In holding Germany responsible
for the war. and. therefore. morally
bound to make reparation. so far as
may be possible"
This government" Secretary
Hughes memorandum said, believes
that 1t recognizes in the memorandum
OF DR.. Stmons sincere desire on the
part OF the German government to re-
open negotiations with the allies on a
new basis. and hopes that such nego-
t1at1ons, once resumed, may lead to q
prompt settlement which will, at the
same time. satisfy the just claims Of
the allies and permit Germany hope
fully to renew its productive activities"
DR.. Simons memorandum was a
lengthy document going extensively
into iGermany's situation, and the
state Department announced that
the American reply had been handed
to diplomhtic representatives of the
allied powers in Berlin.
In his memorandum DR.. Simons ex- >
pressed the earnestS desir af HSfs
many to reach accord with the allied
governments and the sincere purpose
to meet requirements as far as pos
sJssfesas LSSs s. i Itiss. .s'
:Df. rSimons susgested thxt an -ins
tefnationaI loan, IN favor OF which
the allied and associated gtSetntAent
would waive their general mortgages.
He hs deeas.d e sSss q the
Was prepared to oKer the. nscesSary
security for such . lc2n, adding that
1t had been reiterated that the, situa-
tion OF Germany wa. better than that
OF many Of the allied and associated
countriss. because she had no for
Germany would not be unwilling"
he said. ito assume the obligation OF
the interest and amortization Of the
foreign debts Of the allied and asso-
ciated powers within the limit OF her
capacity. should this measure be en-.
tertained by the allied and associated
governments and their creditors"
''It IL entirely clear" DR.. Simons
said, mot only to the government Of
Germany. but to the German people
aration to the limit Of her ability to
pay" -'-'--
ReAdy to Meet PROPOSAL.
He, like the minister. added that
Germany is ready to meet any pro-
posal which appears feasible FOR the
solution Of the economic and financial
animation by unbiased experts Of his
ability to pay. .
germany believes" the memoran-
dunn said. that policy Of duress and
coercion Will HOt OFlHE ABOUT the "a.
construction Of international economic
life and only by way Of peaceful dis.
cussion and understanding can such
reconstruction be obtained. The Ger
man government considers it import.
ant to give, with solemn emphaeia
the assurance that for its part II is
honestly willing to follow the path IL
has suggested"
Americas Menorandun. .az
The American memorandum said:
1.-THE American government is pleas
ed to note in the informal memo.
randum of DR.. Simons the uneouIy.
ocal expression on the part of the
German government of its desire to
afford reparation up to the limit of
German ability TO pay. This govern-
ment stands with the governments of
the allies In holding Germany respon-
sible for the war and, therefore.
far as may be possible.
1.-The recognition Of this obligation.
implied in the memorandum Of Dr.
Simons, seems to the government of the
United States the only sound basis ON
which can be built a firm and just peace
under which the various nations Of Eu-
rope can achieve once moye economic
independence and stability.
This government believes that 1t rec
ognizes in the memorandum Of Dr.
Simons a sincere desire on the part Of
the German government to reopen ne
gotiations with the allies on a new
basis, and hopes that such negotiations,
once resumed, may lead to a PROMPT
settlement which will at the same time
satisfy the just claims Of the allies and
permit Germany hopefully to renew its