The Birmingham age-herald., 1921-04-27
DEMANDS PRESENT PENALTY SYSTEM
 CEASE FORTHWITH
Simons Declares in ReichStag New Offer Not Increase Over Previous Offer, But Only
 on Different Basis
Ry Associated Press


 Berlin, April 26.-The German peo- pie now know the new proposals which the German government sub mits to the allied powers through the medium of the United States. The terms of the proposals were made public today as well as the accom- panying assurances forwarded to President Harding.
 Germany declaring that the peace and welfare of the world are dependent upon a speedy and just solution of the reparations question. assures the Presl dent that it will do everything in its power to enable the American govern ment to direct the attention of the allied governments to the matter.
 As previously outlined, Germany
 proposes to pay the allies an in-
 demnity extending over number
 of years which will amount to
 200. .O00, 900, GOO gold marks, equivnI-
 ent to about $5O,00O. .0O0. 900; she
 will cooperate to her utmost in
 the reconstruction of devastated
 regionsj she will place immediately
 at tine disposal of the repnratiOns
 AAa Hi S ~ " h isVoVsVVNsVVu BOAu
 marks; she is willing to assume
 the allied obligations to the United
 States and she will issue m inter-
 national loan, the proceeds of
 which will go to the allies.
 But, in return, she makes the con dition that the present system of pen alties shall be discontinued immedi- ately. that she be given freedom of trade and that she be freed from all ttry Ia ruft her.
 NEW BASIS ONLY
 The German foreign minister, Dr Simons. explaining the counter pro posals in the Reichstag, declared that the new offer sent through the United states must not be taken lon the basis of an Increase over the previous Ger man offer, but only on different basis"
 The new step had been taken by Germany, the minister explained. not from fear of new penalties, but owing entirely 10 the false views entertained abroad regarding the reparations ques. ton. President Harding was appealed to on the principle of justice and the American answer was awaited at any moment.
 The text of the note forwarded by Germany to the United States for trdHSllisslon 10 the allies concludes with the following points
 "First7 Germany fixes her total liability at 50,O00,oe0, 900 gold marks, payable in suitable annuities to total 100000, 900 gold marks.
 "Second-Germany will immediately issue an international loan in which she will participate. and of which the value, rate of interest and scale of re- demption shall be subject to agree ment, the proceeds of the loan to be put at the disposal of the allies.
 HOW SHE WILL PAY
 "Third-Germany will pay according to her capacity. in labor interest and redemption, the total sum to be paid which is not covered ry the interna- tional loan; she considers in this con nection that it will be possible 10 pay only per cent annual interest.
 "Fourth-Germany is disposed to permit the allies to share in an im- provement of financial and economic situation. The redemption of the re- maining sums will have to take there fore, variable form, depending upon an improvement. It would be neces-
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