New-York tribune., 1921-03-04
Lloyd George Delivers Ul-
timatum Which II Is Ex-
pected Will Be Met By
Program of Concession
Misunderstood Us,
DIR. Sinons Declares
Foreign Minister Indi-
Gates New Offer Will Be
Made; Is Warned of
Penalties for Failure
By Arthur S. Draper
From The Tribune's European Bureau

Copyright. 1921. New York Tribune Inc
LONDON, March 3.--Lloyd George
presented to the Germans to-day rhe
Allied ultimatum, giving them until
Monday noon to meet the Allied repara-
tons terms or submit 70 penalties which
will paralyze their trade in the Rhine
land and put Germany's economic life
under control OF the Entente powers.
There is every prospect that the Ger
man delegates here will bring forws rd
new offer The British Premier made
them q clear opening for such new
overtures when, in his. long address to
the delegates at St. James's Palace he
said that the Supreme Council would
have listened had the Germans raised
sincere objections to some of the AL
led demands If, for instance, he cx-
planned, they had wished modification
Of the number of years in which to
pay or substitution of some new pro-
posal for the II per cent export tax.
The Allies would have considered their
suggestions. Instead, he recalled. they
lad made an absurdly small offer that
vas nos worthy Of attention.
DR.. Walter Simons, German FOREIGN
Minister, replying briefly to Lloyd
George, promised to examine the ulti
matum handed him, but said he de-
sired to point out his belief that the
Allies had misunderstood Gcrmany's
attitude The conference adjo armed i'm
medlately. The Germans, returning to
heir hotel, transmitte. the Allied ulti-
matum TO Berlin, where the next step
viii be taken by the German govern
mens.
Penalties That May Be Imposed
Tie PENALTIES which the Allies will
nfIct unless agreement is reached
Monday, as outlined by Lloyd George
% the Germans, are:
The occupation by Allied troops Of
Duisbure, h0.rort and Dusseldorf,
IN the Rhine Valley.
The imposition in various coun-
tries, through permission OF their
par,iaments, Of tax or German
made goods.
The payment Of all duties col
.ected by the German customs sery-
Ice into the reparation fund.
The Allied occupation OF the Rhine
e'Iles OF Duisburg, Runrort and DIS
Seldort would involve Allied control Of
al German coal production. Premier
hfland told The Tribune correspondent
tonight that the Allied powers plan to
place a heavy duty on every ton of
German coal passing through the Al
led frontier Gordon.
mus we would impose not only
ample military sanctions" said the
french Premier. 'but military sane
ions with an economic value Through
bulsourg and Ruhrort passes all the
,fa'fc from the Ruhr Valley to north
vermany ana the neutral countries Of
holland and Scandinavia. Through
dusseldorf passes all traffic from the
Nunr to south Germany and Cen
,tai Europe, except for, perhaps, d
Seh{h part which goes by rail over
.aAa. mat part, also, will not be
Would Withhold Part of Price
Inc tax on German manufactured
goods would be collected in different
countries by the withholding of a
mare Of the retail price and the trans
mission Of this share to the reparation
llnd. Economic experts attached to
.ne British delegations explain that
.ne money collected in each Allied
country would be put in the national
treasury and then credited to that
eountry's share Of German reparat;on
In. The moneys collected from the Gus
sems service would be on the basis
u Vhe present German tariff schedules,
Inc OF custom houses would be
epSl'aohshed temporarily along the
taG tMlhe and at the boundaries Of the
osTiqgenead oaTg areas. A tariff would be
iyoAected on goods either entering or
'eaSw,ing the country.
me Germans arrived early for This
mornings session. DR.. Simons looked
ppafi'icuiarly psi pale, weary and despond-
s snt. 1t was apparent that ali the
ueiegates on both sides were labor;no
s;t1t Snuer nervous strain with the pos,
I.oie exception of Baron Hayashi. of
span who seemed to be as unemo-
mvnai as ever. A great crowd had
sA'"ered around the palace, but every
tContinued on page three)