The New York herald., 1921-04-27
GERMANY'S OFFER
IS ON NEW BASIS
Simons Declares Proposals
Must Not Be Taken as
Founded on Increase.
U. S. OPINION FOLLOWED
Cabinets Decision Not Due to
Fear of Penalties but to
Remove False Views.
BIZ ne Asaoolated Press.

BERLIN. April 26.-Speaking in the
Reichstag to-day, DR.. Walter Simons,
the Foreign Minister. declared that as
the Reichstag had regarded Germany's
offer to the Allies made at the recent
London conference too high, the mem
bers could not take the new offer sent
through the United States ION the
basis OF an increase over the previous
German offer, but only as on different
basis
The neutral experts DIR. Simons con-
tinued unfortunately had overesti-
mated Germany's capacity to pay. He
said he always had emphasized the
fact that he was ready to enter into
new negotiations. The Foreign Min
lister admitted that he had hoped he
could come to an understanding di-
rect with France, but that the feeling
there was such that he had been un-
able to retain that hope. Therefore
there remained only one Power TO turn
to, neither neutral nor one of the
Allies. and that was the United States.
Another Power. DR. Simons added.
had offered its good offices. but it's ef-
forts were ballSed by the indiscretions
OF the German press.
The Foreign Minister declared IL was
the Governments duty TO take its new
step. not from fear of new penalties but
owing entirely to the false views enter
tained abroad regarding the reparations
question.
THAT step was unusual" he said.
but great leader, who has acknowl-
edged himself a supporter OF the idea of
arbitration. can act as arbitrator.
especially as he has been advised by a
great lawyer and has been intrusted by
the people of the United States with the
highest judicial office. We have APP
pcaled on the principle Of justice. Is
that cringing before our opponents? In
my opinion IL is not.
AT present we must yield TO the
threats OF the Preparations Commission.
We wanted to put our views clearly
hence we chose this form in accordance
not with German but American juridicial
opinion. and therefore consulted Ameri-
can counsel. ! am convinced this step
VIII be judged later differently than now,
When President Harding asked US
to make proposals for negotiations sub
mittable TO the Allies this Cabinet was
obliged 10 act in accordance with facts.
The note was unanimously approved by
tho Cabinet and the American answer
Is awaited eny moment"
The idea OF loan In America. said
DR. Simons, had not been favorably en-
tertained there. but Germany neverthe-
less had made efforts In that direction.
He said the question OF an international
loan would have to be discussed with
the Allies and international fnanciers.
lie hoped neutrals also would assist
The remnants OF the old German
financial resources. Or. Simons con-
tinued, would have to be used to relieve
the German people Of their obligations
under the Versailles treaty. Up 10 the
present. he said. she had adhered TO the
standpoint that Germany already had
given the value OF the 10000, ,000. 900
marks gold payable before May !.
Germany's opponents had estimated
the value OF the ships handed over at
ridiculously low figure. he declared. but
perhaps the value of the ships had de-
preciated. Hence Germany had offered
another billion In gold marks.
The Cabinet. the Minister said. had not
yet reached decision regarding Frances
demand that Germany hand over the
ReIchbank gold reserves. lie went on 70
say that the policy OF penalties was
policy Of force, but there wa a limit
the overstepping Of which no nation
would tolerate.
Charging that the French Premier was
smashing" German trade, Dr. Slmons
exclaimed: Even II the French occupy
the Ruhr to enslave the workers for
years. the German people will yet enter
the land of promise and freedom