Arizona republican., 1921-03-03
Terms Of German
 Counter Proposal
 Are Made Public

LONDON, March 2-After the meet ing of the allies today statement was issued from the conference embody1ng a summary of the German proposal and comment thereon.
 "The plan prepared by the allies at Paris for the payment of separations" it says, relieves Germany of a sub- stantial proportion of the amount pay able to her under the peace treaty"
 Then follow a summary Of the Ger man proposal and the statement says;
 This proposal does not merit either examination or discussion. To dem onstrate it's true character. it is suf- ficient to note the following:
 ''The German government assume they are at liberty to calculate the presE tent value of the fixed annuities on an eight per cent basis. This table is ap- plicable in the Paris plan only to dis counts of fixed annuities made in the first two years.
 The annuities payable under the 1 Paris plan are in addition to whatever sums may be found to have been paid on account of reparations.
 | The German government assess at l twenty billions the value of deliveries made by them. The reparation com mission assess their value at less than half that sum. The amount to be cred ited to the German government in re spect to these deliveries in the repara- 
 The German government use an eight per cent table to arrive at the amount due from them; they propose that the interest upon their debt shall be limited to five per cent.
 The German government propose that their securities shall be relieved of taxation in the country of issue, this burdening the country of issue with [part of their liabilities.
 "On the assumption that the amount
 which Germany will pay during the
 first five yaers will be 1.500,00 900 and
 that the whole obligation will be dis charged in 30 years the amount she
 will have to pay for the 9 years fol-
 lowing to provide for the interest on
 the sinking fund of her whole debt will
 be three billion a year. The present
 value of German payments on this
 reckoning will amount at the outside tC | somewhere about 27,000000, 900.
 Tt is only necessary to compare this sum with the value of the payments } made under the Paris plan to expose . the inadequacY of the German pro-
 posal. Under the Paris plan. on ar ; eight per cent table. the present value of the fixed annuities alone is B 0OO.- 000,00 gold marks. This table is, how r ever, applicable only to discounts O future annuities made during the frs two years. On an eight per cent tabl, l the rate at which discounts can b, , made after 1925-the present value i, over S3,000,000 900 gold marks l It is difficult to make an estimate O ? the value of the variable annuities un l der the Paris plan but a substantial t addition should be made to the abov, 3 figures with respect to these annui l ties. The sum which the German gov . ernment ask the allies to accept il satisfaction of her debt amounts to z
 small fraction of the sum fixed a Paris.
 ''The consequence would be that Ger T mauy's external debt. which is limited . to her reparation liability. would cor s respond to a small proportion only (, Q the external debt which the allies weri
 compelled to contract for the war"