The Washington herald., 1921-05-08
The Ultimatum to Germany.


= is given until May I3 to sign air obligation
accepting liability for the capital of I3Soooooo,ooo
gold marks or about $32 80 which includes the
Of $4,000 100000 marks (about $3I,5eoooo-
ooo) which is the amount Of German Indebtedness de-
termincd by the reparation commission plus 100000
100 gold marks about ST. 5oooooo) which the amount
OF Belgums debt to her allies which Germany is to
pay b, teh of the treaty Of Versailles.
The cable dispatches do explain fully just how
this capital sum be paid the length ofthe period
over which payments will be made the grand total Of
annutes plus interest which the allies will eventually
receive 1t is the purpose OF the plan adopted to
tablish the total amount of Germanys liability and
to arrange that payments be made in accordance with
the development of Germany's capacity to pay 1t
accepted that Germany is not at present able to pay
the interest bonds for the whole OF her liability
which would amount to s., ,6oo,oooooo year 1t
is therefore, stipulated that Germany issue bonds to
the amount of about $20oo 100000 to be followed in
November by another issue OF about $o25o oooooo eav
ing some $40 900 100000 approximately two-thirds
of Germanys total liability uncovered Germany will
be required to pay the interest these bonds by
nual instalments of about 100000 in addition to
equivalent to IS per cent of the value of her
ports 1t is expected that as conditions improve and
German exports increase the derived from the
259o export tax added to the annuity will be sufficient
to cover the interest on more bonds than have been
issued. Germany will then be required to issue
many more bonds the increased receipts will permit.
In this way it is planned to regulate the German
ments by her economic recovery.
The ultimatum also requires that Germany only
recognize without reservations its obligations the
guarantees prescribed by the reparaon commission,
but that execute the provisions of the treaty regard
Ing disarmament and proceed with the trial of
criminals.
If Germany does not accept the plan Of the supreme
council the coercve including the occupation
S.I.. D..L- t-I.---
that Germany will sign the bill presented by the
allies rather than submit to further sanctions.
Premier Lloyd George and Court Sforza will
doubtedly be criticised by certain groups in England
and Italy the ground that the severe
Premier BRAND, however, his France faces
struggle which will be precpitated by M. Poncare and
the bloc national who will certainly consider the
too mild There is already talk of Brands successor
and frequent demands that French troops occupy the
Ruhr whether Germany signs or not On Premier
Brands ability to defend successfully his course at
London hangs the future of Frances relations only
with Germany but with England and Italy The
entente. which has already been subjected to con-
siderable strain would hold up the aggressive
policies of M Poncare to be adopted by France.
CECRETARY OF STATE HUGHES definitely re-
- jccted Gcrmany's latest reparations proposals
Monday night in note forwarded to DR.. Walter
Simons, at that time German foreign minister
News from the allied supreme council in session
at London, made increasingly clear that the proposals
contained in the note the United States could
be considered proper basis for renewed negotia
tons with Germany. This, it is obvious, made pre-
sentaton Of the to the allied governments un-
wise since such a move would be difficult without
carrying with it the suggestion of American sanction
for the offer
Whether a formal communication from the su-
prcme council stating that they could consider the
offer was received by the State Departccnt is not
know" but ths! sufficient, representations were made
Is practically certain.
Secretary Hughes note to DR.. Simons expressed