The New York herald., 1921-03-08
A+-&.%

- &ANN
shadow new complications, new po-
lltical convulsions and, perhaps in the
end, an entirely new peace.
r The momeutous decision to-day is
regarded in diplomatic circles here to-
night as by no means reopening the
war. 4 precedent is found In the
Frankfort occupation by the French.
the Germans being expected 10 sub
nit now just as they did then and
without regarding the allied advance
as Il cause for breaking off relations
Moreover, allied experts intend 70
keep In touch with the Germans IL
the present Fehrenbach Government
remains in power in Berlin, merely
seeking time to work out new propo-
sitions. These will be contingent.
however, on the German people not
being aroused to Il state Of defiance
by the allied move.
The Italians appear not to regard
the negotiations which have been
going on here as ended, one report
being that some Of the German dele
gates would remain here, but this the
Germans later denied, saying they
were leaving tomorrow The Italians
reluctantly supported the decisions
to-day, their experts apparently feel
ing that the move by the Allies was
not justified before May /. They will
take no part in punitive measures,
and even some persons here doubt II
Italy will make any attempt to apply
the second sanction.
Tonight the German delegates are
blaming the French for the breaking
down Of the midnight proposals last
night, while the French are blaming
the Germans. saying they held out in
their demand that Germany must re-
tain Silesia. Had the Germans ac
cepted the proposal, Premier BRAND
would have had hard time, as the
sum Of the thirty years annuities is
much less than that decided on In
Paris.
Refusal Relieves French.
The German refusal to accept these
terms greatly relieved the French,
but the British confidently expected
the Germans would accept them. Pre-
mier Lloyd George feeling he had
saved the situation when he got Pre-
mier BRAND to consent to them.
The break came this afternoon be-
cause the Germans simply stood by
their refusal to accept now any scheme
which fixed the German annuities for
more than the next five years, or, in
other words. that fixed total such as
the Allies demanded. If another week
were given them. DR.. Sinons said,
they might do so, but this the Allies
were not willing to grant. To the last
to-day the Germans were willing to
agree to the first five years annuities
and the equivalent for additional
to the value of IL per
cent of the German exports, but they
refused to waive their demand for an
international loan or the return Of
Silesia to Germany.
The allied proposition to which Pre-
nlier Lloyd George got the French to
agree at midnight last night. wa re-
jected by the Germans this morning,
because. like the Paris agreement be-
tween the Allies, it fixed the German
annuity payments to cover thirty
years and left Silesia out OF considera-
ton.
The whole German argument
stressed again to-day by DR.. Simons
was that nobody could tell conditions
five years hence, and IT would be for
experts to decide at the end OF that
period regarding Germany's future
payments and her total debt Beyond
this DIR. Simons held IL was impossible
for the Germans to promise now with
any hope Of fulfilment.
simons Firm to the Last.
Il am unable" he said, TO see how
this can be considered a wtlfuI violation
OF the treaty. and IL the Allies enforce
their sanctions in the face of this offer
they will put themselves in contradiction
10 all the principles Of right and equity"
This summed UP the German position