The New York herald., 1921-03-02


military experts In London tonight
Also II was asserted in well in
formed circles here tonight tha
other sanctions were possible, besides
an actual march on Berlin"
There is reason 10 believe that the
thing the experts are working on to
night is the seizure of the German
frontiers and the imposition of Gus
toms regimes that have been known
to be effective in collecting recalci-
trant debts In such places as certain
Latin American countries and in
China. 1t was admitted that it was
not yet settled how soon these sane
tions could be employed. The French,
however, do not hesitate to say they
can be applied Immediately. In fac,
the French view of the future is that
the Germans will be asked categori.
cally this question next Thursday:
do you accept the Paris figures?'
If the German reply is either in
the negative or is equivocal, The Ger
man delegates will he cut short and
informed what the sanctions are and
that these sanctions win become ef-
fective in a very few hours.
If it comes to the point OF deliv-
ering such an ul,imatum, England
will be found shoulder to shoulder
with France, but it is only fair to
say that there is weighty British
section in the conference here that
believes the negotiations cannot be
broken off so soon, not only because
the Treaty of Versailles may not per-
NIT such prompt application of the
sanctions. but because there are dis
armament and other phases of the
treaty, Germany's fufillment OF
which is in doubt and which afford
further grounds for discussion.
A Dramatic Preliminary.
The Germans came to Lancaster
House under dramatic circumstances
st. Jamess Palace was used for the
Kings levee this morning and the
conferees moved across the narrow
street next to St James's. There the
German delegates and all the con-
ferees saw the panoply of a British
state function which must have pow
erfully reminded them of former times
at Potsdam. The silver cuirasses OF
the Household Cavalry, the gilded
coaches Of state. the bewigged grooms
and the gold lace and crimson glittered
IN the pale English sunshine. as ad-
rnirals, generals and diplomatiets,
wearing feathers and jewelled swords.
presented themselves at the Kings
ievee.
In fact, just as DR. Simons. wearing
q soft felt hat, and DR.. Sthamer. Ger
man Ambassador in London, arrived
in the courtyard of Lancaster House.
the Guards band over the wall Of
strains of God Save the King"
Neither soft hat Of DR.. Simons nor
silk hat of DR.. Sthamcr was raised.
The opening ceremony in connec-
ton with the conference was brief
DR.. Sinons presented the German
case. speaking German, which was
translated into English and French,
phrase by phrase.
on to Weak start.
70 Yov C;r,orS hal;a,,oa - ~o,,Ya H.
trigue the conference by a suave be-
ginning he failed lamentably. AL
though Premier Lloyd George and
Premier BRAND may not be lightning
calculators. they had Louis Loucheur.
French Minister Of the Liberated Re-
gions, and Austen Chamberlain. Brit
ish Chancellor of the Exchequer. as
well as other financial experts. at their
elbows-men who live on Ggur~s. 1t
was these men who Immediately started
when DR.. Simons declared
that the Paris reparations decisions.
discounted on the basis OF per cent.
meant $4,000 o00. 900 marks gold.
Stripped OF disputable calculations OF
capitalization and discount, what the
Germans offered to-day was the con-
tent.on that they had already paid
81 600, 600, 900 and were willing to pay
Il. 800. 100000 more through a term of
thirty years.
This total Of f2,5oo,0oo. 900 compares
with 1880. .ooo.0 to be paid through
a period Of forty-two years, according
to the terms OF the Paris demand.
But what. perhaps, made the Ger
man offer less worthy OF consideration
than anything else was the conditions
they attached to IT, They declared
that their offer was good only in case
the Silesian plebiscitc favored them
and their free trade was restored
the world"
II was these conditions. obviously
any belief that the finan-
sial proposals meant a compliance
with the Paris demands. which stiff
fened the entire conference against
them
Lloyd George Replies.
When Or. Simons spoke OF an interna-
tional loan for Germany "at the lowest
possible rate OF interest and with a
sinking fund requirement OF / or ~