The New York herald., 1921-01-31
ALLIES TO BLOCK ANY PACT
BETWEEN u. s. AND GERMANY

will give to the Reparation Commission
every facility for verifying the amount
of the German exports and for the es-
tablishment OF the supervision necessary
for this purpose.
Article 2-The German Government
will transmit forthwith TO the Repair
alton Commission notes to bearer pay
able at the dates specified in article l,
paragraph /. of the present arrangement
The amount or these notes shall be
equivalent to each OF the half yearly
sums payable under said paragraph.
"Instructions shall be given to the
Reparation Commission with view to
facilitating realization by the Powers
which so demand, the share to be at
tributed TO them in accordance with the
agreements in force between them.
Article 3-Germany shall be at lib
erty at any time to make payments in
advance on account of the flxed portion
of the sum owing.
Advance payments shall be applied
in the reduction of the fixed annuities
provided for in the first paragraph OF
article 1. For this purpose annuities
shall be discounted at the rate of per
cent. until May l, 1928; . per cent from
May /. 1929, to May 1, 1925; per cent.
from May /. 1925.
Article 4-Germany shall not directly
embark on any credit operation outside
her own territory without the approval
of the Reparation Commission. This
provision applies to the Government OF
the German Empire, to the Governments
of German States to the German provin-
cial and municipal authorities and to
any companies or undertakings under
control of said Governments or authori
ties
Article 5-In pursuance of article
PAS of the Treaty OF Versailles all the
| assets and revenues of the empire and of
the German States shall be applicable to
Insure complete execution by Germany
OF the provisions of the present arrange
ment.
The proceeds of the German mari
time and land customs. including in par
t!cular the proceeds of all import and
export duties and of any tax subsidiary
thereto shall constitute special security
for the execution or the present agree
| ment
mo modification which might dimin-
ish the proceeds of the customs shall be
made in the German customs laws or
regulations without approval of the
Reparation Commission. All German
customs receipts shall be encashed on
behalf of the German Government by
a receiver general of German customs
appointed by the German Government
with the approval of the Reparation
Commission.
I'm case Germany shall make default
in any payment provided for in the
| present arrangement:
"G) All or part of the proceeds OF
the German customs in the hands of
| the receiver general of German customs
| may be attached by the Reparation
| Commission and applied in meeting the
| obligations in respect of which Ger
many has defaulted. In such case the
| Reparation Commission may, II 1t
thinks necessary. itself undertake the
administration and receipt of the GUS
| toms duties.
"(2) The Reparation Commission
also may formally invite the German
| Government to proceed to such in
creases Of duties or to take such steps
| for the purpose OF increasing its re-
sources as the commission may think
| necessary
LONDON, Jan. 81 (Monday) The
| Times, commenting on the Paris confer
| ence. says that the settlement may be
| open to objection in more respects than
| one. but has "the supreme merit that It
| consecrates anew the solidarity Of the
| Allies
1t continues: "The decisions are
the Allies do not mean TO be trihed
with any longer. They are not incon-
sistent with her economic restoration.
and they are not-despite the German
outcry-unreasonable In other respects"
If Germany refuses, the Times adds.
the Allies may be compelled TO apply
to the letter the terms OF the treaty.
The Daily Express doubts whether
Germany will be able to foot the bill,
but says: 'If payment can be exacted
IL will be In a form that will do her
creditors more harm than good"
The Ddiiy Telegraph says that Ger
many Is quite able to meet the bill If
she chooses to do so. but It asserts that
she probably will not pay except under
stringent compulslon. II calculates the
British share of the total of the repara-
tions as still less than one-third OF the
British war debt.
Tho Morning Post asks what. sanction
is behind the agreement providing for
annual payments from "a sulky debtor
for the next forty-two years.
The Daily Nous thinks the immediate
demands on Germany are not crushing.