New-York tribune., 1921-03-02
Lloyd George Resen:s AT
tempt to Compromise
on 1874 Per Cent Basis.
Scorns Further Parley
Pre,niers Prepare
Final Ultilplatum
Date To Be Set on Which
Berlin Must Yield or
Fresh Invasion Begun
By Arthur S. Draper

Copyright 1921. New York Tribune Inc
LONDON, March 1.-The Ger
mans laid before the Allied premiers
at the opening OF their conference
here this morning an offer to pay
what would amount to 10000, ,O00.-
coo gold marks tS7,500, 0,0O0,0OO) in
reparation for war damages. The
Entente powers had demanded 226.-
marks (S56,500, 0O,O0O)
in annuities extending over a period
Of forty-two years.
Premier Lloyd George, speaking
for the Allies, fatty rejected the
German offer. He spurned the pro-
posal as wholly unsatisfactory and
incommensurate 10 the damage done.
and told the Berlin delegates that i
they had nothing more to offer they
would better have stayed at home.
Tonight the situation is grave.
With Allied soldiers modified along
the Rhine ready to thrust deeper
into Germany at the first word from
London, the conference with the Ber-
lin plenipotentiaries here seems on
the verge Of disruption. Lloyd
George intimated to Premier BRAND
Of France in private conversations
tonight that ne wouldn't listen to
further German proposals. To-day's
refusal to meet the Allied terms as
drawn up at Paris, the British Pre-
nler held, was final and took the
situation out of the hands Of nego-
tiators.
In conference circles tonight the
feeling prevailed that the gulf be-
tween the Germans and the Allies
cannot be bridged now. Although Il
would be premature to say that the
situation has been turned over to
the military, that procedure as
possibility seems nearer tonight.
'remiers Prepare Ultimatum
Early this evening Premiers Lloyd
George and BRAND and General Berthe
lot met at 10 Downing Street to dis
cuss the reply which the Allies will
make to the Germans tomorrow morn
ing. 1t is understood that this answer
will advise the Germans that they must
accept the Paris terms within speci-
fed time or face the penalties which
the Allied armies will inaict.
The advance OF the Allied armies is
to be directed on an eastward
line from Mayence through Frankfort
and up the valley of the Main into
Bavaria. Present plans may carry the
troops to the Czecho Siovakian from
tier. cutting Bavaria off from the north
Lloyd George stipulated IN his con-
versations with BRAND that in tfe
military movements British troops
must not be involved on any large
scale. The land action viii be lcft
largely IN the hands of The French. ac-
cording to Marshal Foch's plan. while
the British fleet Will cooperate With
demonstrations off the German North
Sea ports.
The conference this morning with the
= Germans opened with few preliminaries.
r0TpiOn
Minister and Spokesman fer his dele
cation, took the iooF imn. ediatelv after
BRET Introductory speech bv the Brit
lsh Premier, and read the German pro
pcsals.
Terms Germans Ofer
In substance these were:
That the total capital sum which
Germany shall pay be Iixed definitely.
On this amount Germany would pay
interest and provide d sinking fund.
in the usual manner
That the amount Of Gcrmany's an
nual payment as proposed IN Paris
be discounted per cent.
That the total amount Of Germanv's
war bill, which is to be payable over
a period of thirty years, shall no. eX-
ceed 50,000,00 coo gold marks. from
which shall he deducted the amount
Germany already has paid This is
estimated by the Germans 20 amount
to 10000 100000 marks.
That the balance OF the reparations
bill, or 10000, 900 coo gold marks. be
funded by an international, loan or
series OF loans, which would be guar
anteed by German bonds bearing
low rate Of interest and be tax free
in all countries. Germany would
discharge her Obligations to the
Allies by paying off these loans
That amortization OF these loans
begin fve years hence at an initial
rate of l per CEN, which shall in-
crease gradually
That Germany shall pay, in addi-
ton to the interest and sinking fund
~on the loans, an amount not 10 ex-
ceed 1000, 100000 gold marks an
nually. Part OF this would be in
kind.
That reparation debts not covered
by the loan shall bear interest at >
per cert to May, 1926. when the
Allies and Germans would again con-
fer to adjust the German indebted
! ness
That Germany accept the principle
of the export tax, although the
amount of it as fixed by the Allies
az per cent? was subject TO modiii-
cation.
That Germany help to restore the
| devastated areas of northern Francs
with German labor and that the ;-est