The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1921-04-07
j. s. FAVORS NEW
WAR DEBT FARLEY
Tells Germany She Must Pay for
Damage Done.
TO STAND BY THE ALLIES
Memorandum Is Sent in Reply to
Communication From Berlin in
Which 1t Was Stated Germany
Was Willing to Settle.

Washington, April 5.--Formal state
ment of the attitude of the United
States as to German PREPARATIONS is
contained in an exchange Of commu-
nications with German government Of
hcials made public by the State de-
parrment. They are in the form of
memoranda transmitted through Lor-
ing Dresel, American high commits
sioner at Berlin.
The German communication, dated
March %, was written by Dr. Walter
Simons, German foreign minister, and
asserted it was entirely clear both to
the government and people that Ger
many must make PREPARATIONS to the
limit of her ability to pay" but sought
examination by unbiased experts to
determine the extent of her ability.
U. S. Stands With Allies.
In his reply, dated March 20, Secre-
tary Hughes of the State department
expressed pleasure at Germany's "un-
equivOcal expression of its desire to
pay to the limit Of ability and declared
the United States Stands with the
governments Of the allies in holding
Germany responsible for the war and
therefore morally bound to make repa-
ration, so far as may be possible"
This government" Secretary Hughes
memorandum continued, believes that
1t recognizes in the memorandum of
Doctor SimOns a sincere desire on the
part of the German government to re-
open negotiations with the allies on a
new basis and hopes that such negotia-
tions, once resumed, may lead to a
prompt settlement which will at the
same time satisfy the just claims of
the allies and permit Germany hope
fully to renew its productive actiyi-
ties"
In his memorandum Doctor Simons
expressed the earnest desire" of Ger
many to reach accord with the govern
mentS of the allies and the sincere
purpose to meet requirements as far
as possible.
Germany believes" the memoran-
dun said, that a policy of duress and
coercion will not bring about the re-
construction of international economic
life, and only by way of peaceful dis
cussion and understanding can such
reconstruction be obtained. The Ger
man government considers it impor-
tant to give, with solemn emphasis,
the assurance that for its part it is
honestly willing to follow the path it
has suggested"
Doctor SimOns suggested that an in
ternational loan, in favor of which the
allied and associated governments
would waive their general mortgages,
constituted the only solution of the
problem. He declared that Germany
was prepared to offer the necessary
security for such a loan, adding that
it had been reiterated that the situa-
ton of Germany was better than that
of many of the allied and associated
countries, because she had no foreign
debts.
Germany would not be unwilling"
he said, "to assume the obligation of
the interest and amortization of the
foreign debts of the allied and asso-
ciated powers within the limit of her
capacity should this measure be enter
tanned by the allied and associated
governments and their creditors"
Text of U. S. Memorandum,
The American memorandum said:
THE American government is
pleased to note in the informal me-
morandum of Doctor SimOnS the I'M
equivocal expression on the part of
the German government of its desire
to afford reparation up to the limit
of German ability to pay. This gov
eminent stands with the governments
of the allies in holding Germany re-
Sponsible for the war and therefore
morally bound to make reparation, so
far as may be possible.
The recognition of this obligation,
implied in the memorandum of Doctor
Simons, seems to the government of
the United states the only sound basis
on which can be built a firm and Just
peace under which the various nations
of Europe can achieve once more eco
nomic independence and stability.
This government believes that 1t
recognizes in the memorandum of
Doctor Simons a sincere desire on the
part of the German government to re-
open negotiations with the allies on a
new basis, and hopes that such nego-
tiatiOns once resumed, may lead to a
prompt settlement, which will at the
same time satisfy the just claims of
the allies and permit Germany hope
fully to renew its productive activl-
ties"