The New York herald., 1921-04-24

Special Gable to THE New YORK HIRAM.
Copyright, 1891, by THB NEW York HERALD
New York Herald Bureau.
Paris, April -.
In note to-day to the ReparatioH
Commission. Germany disposed Of the
report that she would comply with the
commissions latest demand for the
transfer of her gold reserve to the
Rhineland by refusal, Offering, how
ever, to take precautions against this
gold leaving Germany before October I,
although the Versailles treaty fixes
May l as the limit for her liability in
this Connection.
The German refusal is based on the
theory that the Reichsbank, where
this gold reserve is deposited. is a pri-
vate institution and therefore is not
subject to the Reparation Commits
sion's order. and also that the trans
fer of this gold would have a serious
influence on the value of the mark
VIII Not Gain Time.
Germanys proposal to the Allies for
the reconstruction or the devastated
regions OF France is not acceptable TO
France. II II were made in an effort to
gain time II will not accomplish It's pur-
pose. " was declared in official circles
confined to but one phase of tho repara-
tions problem, and will not be regarded
here as constituting a sufficient basis
for discussion OF a resumption OF the
negotiations. either directly or through
the United states as mediator.
Tho French objections TO the repara-
tons proposals. are chiefly directed
against the fact that the restorations
would necessftate an immense financial
outlay by France despite her present
financial distress. forcing her TO carry
on the system OF advances begun al
spa. but leaving eli questions. such as
adjustment or accounts, how labor used
In the restoration work 10 to be paid
and the fixing ot values TO an indefi-
mite date. Furthermore. no provision
is made in the German proposal for
the repayment Of the 81. .ooo. 100. 90 francs
already ADVANCED by France for the
regarded as an attempt to avoid a dis
cussion OF the total reparations sum.
upon which oil depeSds, in so far as
France ic concerned.
The French position is that there can
be no Isolated discussion OF a single
phase OF the reparations question.
There are still some doubters here re-
garding how far President Harding
meant to 20 in the last paragraph OF
the note sent by Secretary or state
Hughes, which the Germans have ao-
cepted as q distinct offer 10 mediate.
for II. after examining any new Ger
man proposals which we're less thnr
the Parir accord. which called for
a2s. .0o0. 900, 600 marks gold. the United
States forwarded them to tho Allies.
the Implication might he that the
United States dd not approve tho
Paris figures, which were again
stressed to-day as being Frances ir-
reducibe minimum.
uppermost Fear ny French.
This fear appears uppermost IN the
French mind. although the hope was
exprcesed that the Washington Admins
tration would dlsavow any such inten-
t,on in acting on any German offer.
But no German reparatlons agreement
whether obtained by force or offered
willingly by the Germans. would be
worth anything without the financial CO.
operation OF the United states, and this
is what can stili give Washington the
controlling hand in the situation.
BY the Associated Press.
PARIS. April 23.---The text OF the Ger
man note on removal OF the Reichsbank
rnld fnlinwn