Arizona republican., 1921-04-05
HUGHES STATEMENT SENT
 GERMAN FOREIGN OFFICE SUPPORTS ALLIED STAND ION PREPARATION DEMANDS
Germany Says She Is Now Ready To Meet Feasible Proposals For Solution Of European Problems

WASHINGTON, April 4. = Para phrases of the informal exchanges between the German and American governments on separations, in which the United States holds Germany
 morally bound to make separations so far as may be possible" were made public today.
 Describing the German communi- cation as an ..unequivocal expression of the recognition of that obligation the American reply expresses the hope that renewed negotiations which Germany says 1t plans to initiate may lead to a prompt settlement which will satisfy the just clamis of the allies and permit Germany hopefully to renew its productive activities"
 The German communication sug- gests that the only solution of the reparations problems is in an inter national loan for which the allied and associated powers would waive the general mortgage on German assets | created by the treaty of Versailles. German says it would not be un- willing to assume the obligation CT the interest and the amortization Of the foreign debts of the allied and
 associated powers, within her ca l pacity.'
 | Germany says she stands ready to | meet every proposal which appear 1 feasible for the solution of the eco homie and financial problems Of Europe"
 No Reference to Consolidation i The American reply makes no ref erence either to the proposed eonsoli- dation of allied debts as a German i obligation or the suggestion for the determination by unbiased experts ol I inc ahfiffx- nf
 Another consideration on repara
 tions presented by Germany is re- mobilization of devastated regions. i The German government says it | stands ready to offer to France good offices and resources. It asserts that for the immediate rehabilitation It i has repeatedly proffered- labor.
 tance," but that these offers have not been accepted.
 Germany declares there exists in
 France only a limited degree of con cern for the rehabilitation of the dew : astated regions, because advance in-
 demnities have been given former oc-
 cupants who have settled in otheT
 parts of France, and the work ol i clearing the war areas has been un- deEtaken by influential groups oi promoters who are making no effort to expedite their contracts | The German communication is iu
 the form of a memorandum of Dr, .i Walter Simons. minister for foreign i, affairs, dated March 23. The Ameri- can reply is officially termed state
 ment," sent to Commissioner Dresel for communication to pr. Simon. tI Hughes Statesment II It is dated March 29 and follows: "The American government is pleased to note in the informal memo of Dr. Simons the unequiv- ocai expression of the part of
 the German government of its : desire to afford reparation up to : the limit of German ability to pay. This government stands with the governments of the al-
 lies in holding Germany respon- sible for the war and therefore
 morally bound to make repara-
 , tions, so far as may be possible.
 "The recognition of this obi- ! eation, implied in the memo of pr. Simons, seems to the govern 5 ment of the United States the 5 only sound basis on which can r be built a firm and just peace
 | under which the various nations