The New York herald., 1921-03-03
ALLIES, CALLING
GERMAN BLUFF,
SHOW EVASIONS
Say Berlin Proposal Merits
Neither Examination Nor
Discussion and Expose
It's Character.
DELIVERIES USED OVER
Germans Count Them
Against Reparations. but
Annuities in Paris Plan
Were Exclusive.
WOULD ESCAPE BIG SUM
Offer Figures at Present Value
27 Billion Gold Marks, Where
as Allies Had Set Total
at 83 Billion.
BIZ tho Associated Press.

By the Associated Press,
LONDON, March 2.--After the meet
Ing of the Allies to-day statement
was issued from the conference en-
bodying a summary Of the German
proposal and comment thereon.
The plan prepared by the Allies
at Paris for the payment Of repara-
tions," says this statement, relieves
Germany of a substantial proportion
of the amount payable bv her under
the Treaty of Versailles"
what Germany Proposes.
Then follows "a summary OF the
German proposal, and the statement
says: "This proposal does not merit
either examination or discussion. To
demonstrate its true character it is
sufficient to note the following:
"FIRST-The German Government
assume they are at liberty to calcu-
late the present value Of the fixed
annuities on an S per cent. basis
This table is applicable in the Paris
plan only to discounts of fixed an
nuities made in the first two years.
SECOND - The German Govern
ment ignore the value Of the variable
annuities provided for in the Paris
plan, the amount of which depends
upon the value of German exports.
''THIRD--The annuities payable
under the Paris plan are in addition
10 whatever sums may be- found to
have been paid on account Of repara-
tious.
'FOURTH-The German Govern
ment assess al 100000 900 the
value Of deliveries made by them on
account Of various obligations i'm
posed upon them BY the treaty. The
reparation commission assess their
value at less than half that sum. The
amount to be credited to the German
Government in respect to these deliv-
cries in the reparation account will
be- found to be very small
FIFTH - The German Govern
ment use an s per cent. table for the
purpose OF arriving at the amount
due them; they propose at the same
time that the interest upon their debt
shall be limited 10 . per cent.
sixth The German Govern
ment propose that their securities
shall be relieved Of taxation In the
country of issue, thus burdening the
country OF issue with part Of their
liabilities.
''SEVENTH-On the assumption
that the amount which Germany will
pay during the first five years viii
be ,500.000,0 1000. and that the whole
obligation will be discharged in thirty
years. the amount she will have to
pay for the twenty-five years follow
Ing that period to provide for the in
terest on the sinking fund Of her
whole debt viii be 5000. 100000 a
year. The present value Of German
payments on this reckoning will
amount at the outside TO somewhere
about 27,000,000,00o.
rnadeauacy Exposed.
1T IL only necessary To compare
this sum with the value of the pay
ments made under the Paris plan to
expose the entire inadequacy OF the
German proposal. Under the Paris
plan. ON an 8 per cent. table, the
present value OF the fixed annuities
alone is $4,000, 100000 gold marks.
This table Is, however, applicable
only TO discounts OF future annuities
made during the first two years. ON
an s per cent. table = the rate at
which discounts can be made after
fe2J-the present value is over
5000, 100000 gold marks.
1T is Of course difficult to make
an estimate of the value of the vari-
able annuities under the Paris plan,
bat q substantial addition. at any
rate, should be made to the abo-, /,
figures In respect to these annuities. |
Tho sum which the German Govern.
ment asks the Allies to accept in sat
lstaction OF her debt amounts. there
fore, to small fraction OF the sum
fixed at Paris.
"The consequence would be that
Germanys external debt, which is
limited to her reparation liability, I
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