New-York tribune., 1921-02-19
Demands Berlin Pay to
Limit; Says She Pur.
posely Makes Case Ap-
pear Darker Than 1t Is
Deliberate Failure
Means Stern Action
Governments Policy Is
Upheld in Commons by
a Vote of I8I to 40

LONDON, Feb. 1s (By The AS.
sociated Press). - Premier Lloyd
George, speaking in the House of
Commons to-day, declared that de-
liberate failure by Germany to carry
out her obligations means action by
the Allies to enforce the treaty" He
said that before the Allied govern
ments could take responsibility for
stern steps they must be satisfied
that Germany's failure was due to a
deliberate attempt to defy the treaty.
The Premier charged that Ger
many purposely was making her case
appear darker than it really was,
and be demanded that she balancei
her budget and make an effort TO
meet her obligations.
Mr.. Lloyd George declared that he
stood by his pledge that Germany
must pay to the limit of her capacity.
The Prime Minister was discussing
the German reparations question In
answering Horatio Bottomley's ar
raignment of the governments policy
of alleged ineptitude with regard to
forcing Germany to comply with the
separations demands, the provision for
the trial of war criminals and other
portions of the peace treaty.
Bottomley's amendment to the re-
ply to the speech from the throne, CEN
-suring the governments policy with
regard to the Treaty of Versailles, was
defeated, 181 to 40.
Limit of Capacity Problem
tinued the Premier, between Germany
paying for the whole cost of the war
and paying to the limit of her capacity.
"The whole point is as to limit OF
Germany's capacity to pay" he said
The Allies, continued the Premier,
had taken the best advice available and
had summoned the ablest men to be
found, upon whose advice the present
demands had been made, and the
Allies were carrying out the peace
terms to the utmost of their power.
Germany, he pointed out, had delivered
bonds to the Allies, but the value of
these bonds depended upon the value
of the German security at the present
moment. Raw material, ships, prop
erty of other sorts, and coal, also had
been delivered, added the Premier, ard
the question was what was their value.
Difficulty in Exacting Indemnity
The Germans argued, continued Mr..
Lloyd George, that if the Allies took
the value of the raw material at the
time it was delivered, the sum amount
ed to more than the 10000, ,000, 600 marks
named in the peace treaty. The Allies
contended that the sum was less than
this, and the matter was one that the
reparations commission was examining.
Even according TO the Allied account
ing, he said, it was matter of hum
dreds of millions of pounds sterling
which had been delivered, and the
question was purely one of the time at
which one was to assess the value of
the raw material that had been handed
over.
Mr. Lloyd George laid stress upon
the difficulty of exacting an indemnity
in another country and securing its
payment here.
"You can easily collect in Germany
any indemnity you may impose, within
reasonable limits" added the Premier,
but how are you going to transfer il
here? There IS much loose thinking
on this subject.
81 take the view that we have got to
do the best for the country out Of what
Is essentially a bad job, as every war
is The war cost something beyond
what any country can pay, and does
any one imagine that any country in
the world can pay the whole cost +? IN
IDENTITIES can be paid in goods or serv-
ice, and that is why we introduced an
export tax on Germany's outgoing
goods. That means that everything she
sends out in goods is gold. for she gets
something for which there is q gold
equivalent"
Impossible Things Bring Nothing
The Prime Minister said Mr.. Bottom
ley had talked of sending some one to
Germany TO collect the indemnity, but
| whoever went would have to collect it
| in paper marks, Mr.. Lloyd George
| load to pay Mr.. Bottomley's fare home.
We are bound to accept the advice
| of the men who are sitting month after
month examining into this, in view Of
| all the practical difficulties" the Prime
| Minister continued. "Tf you press for
impossible things you get nothing.
Il don't want, IN replying to mem
bers who used extravagant language,
to be put in position of appearing to
!
when I 60 into the conferensH it will
be my first duty to insist that Ger
many carry out all essential parts of
the treaty, which to the present I
think she has neglected. She has not
taxed herself to the limit of her ca
| pacity OF TO the level of the Allies,
although it WAS part of thu Treaty of
Versailles that she do so. Her Gus
toms and excise are not adequate, even
in comparison with France ard Great
Britain"
Must Make Allowances for Food
In speaking of Germany's ability to
produce and pay, Mr.. Lloyd George
said:
I'VE have got to make allowances to
enable her 10 get the raw material and
the food which is necessary TO enable
her TO produce these goods, and that Is
the calculation we have got to make.
Il do not want to enter the confer.
ence except in the spirit of doing nv
best to get from Germany the las,
farthing she is capable OF paying, bat
" will not go there in the spirit Of ad