The New York herald., 1921-02-09

Special Gable to THE New YORK HERALD.
Copyright 1891, By TtIE New YORK HERALD.
New York Herald Bureau,
London, Feb. 3.
The solution of the German repara-
tions problem which Sir Robert Horne.
president of the British Board of
Trade, suggests and which provides
for reparations payments in raw ma
terials, is described in German official
quarters here as merely another
swing in the vicious circle of the
Allies which is making all the parties
dizzy" Sir Robert, speaking in Snef-
field. said the Allies should not permit
the Germans to pay the reparations In
finished goods, because such payments
would demoralize British industry.
The Germans declare such repara-
tions scheme will not work; that 1t
cannot work.
ment that Berlin would send repre-
sentatives to the London conference of
the allied Premiers. German officials
here pointed out, as they termed 1t,
.the weakness Of The scaffold upon
which II is planned to hang Germany"
They say the worlds economic struc-
ture will not stand the strain of the
reparations programme and freely
quote British and American private
authorities to this effect.
Germans Seek to FIX Basis.
II Is pointed out that the Berlin Gov
ernment lays down the condition that
the negotiations in London shall be
based upon proposals which Germany
reserves the right TO lay before the
conference.
German officials here, commenting
on the Horne proposals, assert they
have no raw materials-not even enough
for their own industries. They call at
tention to the fact that Germany has
lost the coal and iron OF Alsace-Lor-
raine; that the Saar Valley is no longer
under her control. and that probably
she will lose Silesia. Therefore, they
declare. apart from potash. Germany
has not, and will not have. any raw
materials TO send out
Sir Robert Horne intended that Ger
many should get raw materials from
other countries In exchange for finished
goods The German answer Is that this
would put the British in exactly the
same position as If Germany paid in
finished goods, because when Great
Britain took her finished products into
world markets she would find them sup
piled with German goods. which would
amount TO the same thing. Germany
having free trade with all countries.
,hnttfI flnnd ALL the
markets other than British tho Germans
cannot see how the British would get
off any better thar II they traded d.
rectly. supposing. OF course, the repara-
lions 20 into effect. This argument Is
advanced by the Germans merely to
show how impossible the reparations
programme as it stands is TO them
Embargo would Hurt Allies.
The Germans say that IL the British
put an embargo on finished German
goods. France and italy will DO likewise
and that the Germans must needs sell
in countries like America and Arsen-
tina. They admit frankly they do not
think America will like this any too well.
Premier Lloyd George says Germany
will not be allowed to pay the repara-
tions by sending out cheap goods. but
the Germans say this will simply be a
case where they can raise prices so the
goods will be no longer cheap. which
will make the Allies themselves pay tho
German indemnity.
Tho Germans are making the most OF
the endless complications arising out OF
the Allies carefully planned arrange
ment to punish Germany. This is best
illustrated by tho trouble arising out Of
the ships which Germany turned over TO
England. or the 800 vessels allotted.
only 100 have been sold. but that was
enough TO dopress the English shpbuild-
Ing trade and TO give rise to much unem-
ployment in this country. The remain
ing $50 vessels are on the hands of the
Government and It is costing much to
maintain them. AS n part OF the indem-
nifty II "a held that these vessels really
represent a loss, while shipbuilders here
have further fear In connection with the
sale of the vessels remaining on hand.
Postponcment Until March.
Now that the date for tho German
representatives 20 meet with the allied
Premiers has been postponed until the
first week IN March, shrewd Foreign OF
fec observers here arc venturing to pre-
dict that the London conference will he
The last Of tho meetings which have
dragged the Treaty OF Versailles through
Sps and the cautals OF Europe for
tro .ears They believe that Or. Walter
Simons German Foreign Minister real
izing that the allied terms must be ac-
cepted by Germany. Is preparing Ger
man opinion for that eventuality.
THE NEw York HERALD correspondent
here learned that Premier Lloyd Georges
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