Evening star., 1921-03-07

,, LONDON. March i.-Applicstion of
, the penalties upon Germany for nom
fuifiliment of her reparations require
men's WAS decided upon by the allies
here this afternoon.
The penalties in question were an
nounced 10 the Germans last Thurs
day BY Mir. Lloyd George, the British
the cities OF Duisbure. Dusseldorf
, the cities of Duisburs. Duesseldorf
ana fuhrort. in the German indus
| trial area beyond the Rhine. by troops
OF the allies: imposition by each al
, ied country OF ouch tax upon Ger
man imports as it may deem fitting
the establishment of a customs boun-
darv under allied control along the
Rhine.
"Posipe.ement Uniu.tiaed."
Mr. Love George informed the Ger
posals made by Foreign Minister ST.
mons this morning unacceptable to
the allies. but that Notwithstanding
the interval since last weeks confer
ence. the Germans had not made such
advance in their propositions as
would justify postponement OF the
imposition of the penalties
The British premier said he must
announce on behalf of the allies
failure TO come even to an approxi-
mate understa ndinc with the Ger
mans
Until we get proposals from Ger
many which mean n permanent set
tlement there can be no peace he
declared
The conference between the heads Of
, the allied governments and representa-
tives of the German government which
| began at noon today for discussion Of
the repsra tions question look an ad-
journment at ] 80 O'Clock until $50
pm
The new proposals were of pro-
visional nature. calling for pay
menr of fixed annuities for the frs.
tive years. The Germans id they
would have to consult their govern
ment, and TO ask a weeks adjourn
fnent for the purpose. il they were
required TO make proposals covering
the total reparaticns.
Premier BRAND OF France on leay-
ing the conference. indicated that
the reply of Mr.. Lloyd George would
be- very firm and positive in tone.
The allies are perfectly agreed as
10 what should be said ne added
NJ. BRAND and Mr.. Lloyd George
took luncheon together during the
recess.
German statement.
Ir presenting his proposals at the
confsrence's first session the German
foreign minister although declining
to discuss the question of RESPONSE
bility for the war which he said
only history could decide expressed
agreement with Mr Lloyd George
that the party which had been con-
demned by the peace treaty must pay.
The GERMANS. he pointed out, had
made proposals to restore the dew
asIated area of France. but these
had been received with doubt.
Dr SifOonS de DipreG rho ..niad fi,SnoSi
lion 70 ignore the payments already
made ty the Germans. which they con-
tended should be applied 10 the repara-
lions account. and the allied persist
ence in the view that Germany was
acting IN bad faith. He discussed ~
length the subject OF taxation in Ger
many and in the allied countries. seek
ing TO disprove the statement made by
the British premier in his speech of
last Thursday that Germany's taxes
were lower than those of the allies.
Taxation and Income.
Dr Simons maintained that the taxes
should be calculated on per capita
basis. taking INTO account the incom-
per capita. He quoted statistics to
prove that on the basis OF such calculd-
tionS the Germans Were more heavily
taxed than the English. He declared
that even the allies had admitted that
further direct taxation in Germany was
impossible.
After asking Or Simons a number OF
questions, M. Lloyd George replied:
II am afraid ! must tell DR.. Simons
that there is no doubt as to the answer
which the allies must be forced to give.
| think il desirable. in view OF the
great gravity of the decision. that we
should give reasoned reply to hS
ca arefully prepared and clear statement
The interval Will also enable MS TO reae
a full report OF his statement
Submitted to Council.
The new German proposals vert
submitted to the supreme allied coun.
Gil here today before the repara tions
conference opened its meeting Tn.
general conference met at noon.
Dr. Simons told the allies that the
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