The Birmingham age-herald., 1921-04-05
GERMANY IS HELD
 MORALLY BOUND ID
 MAKE PREPARATION
American Note Says U. s. Stands With Allies In Hold . ing Germany Responsible
 for World Catastrophe
By Associated Press

Washington, April 4.-Paraphrases of the informal exchanges between the German and American governments regarding separations in which the United States holds Germany "mor- ally bound to make reparation, so far as may be possible" were made pub lie today at the state department.
 Des 'ribng the German communica- tion as an "unequivocal expression of the recognition of that obligation. the American reply expresses the hope that renewed negotiations which Germany says it plans to initiate may lead to prompt settlement which will at the some time satisfy the just claims of the allies and permit Germany hope fully to renew it's productive activi- ties"
 Included in the German communica- ton is the suggestion that the only solution of the reparations problem is in an international loan, in favor of which the allied and associated powers would waive the general mortgage of German assests created by the treaty of Versailles. In this connection the German government says it would not be unwilling to assume the obliga- tions of the interest and the amortiza- ton of the foreign debts of the allied and associated powers, within the limit of her capacity
 INVITE EXAMINATION
 Germany invites the examination "by unbiased experts of it's own ability to make payment and says she stands ready to meet any proposal which ap- no faa acfN N1a ( tz,< <f 4t.a economic and financial problems of Europe A
 The American reply makes no refer ence either to the proposed consolida tion of allied debts as German ob- ligation or the suggestion for the de- termination by unbiased experts of the ability of Germany to pay.
 Another consideration with regard to reparations presented by Germany is that of the rehabilitation of devastated regions. The German government says it stands ready to offer to France good offices and resources in whatever form is acceptable. 1t asserts that for the immediate rehabilitation of the de- vastated regions it has repeatedly prof ferred labor, technical advice and ma terial assistance" but that these of fers have not been accepted.
 FRANCE NOT CONCERNED
 Germany declares that there exists in France only a limited degree of concern for the rehabilitation of the devastated regions" because advance indemnities have been given to former occupants of the soil who have settled in other parts of France and the work of clearing the war areas "has been undertaken by influential groups of promoters who are making no effort fA ffa | aef~ z = contracts
 The German communication is in the form of memorandum of Dr. Walter Simons, minister for foreign affairs, dated March 23, and transmitted through American Commissioner Dresel at Berlin. who has had informal con yersations with the German govern ment on the subject for some time The American reply Is officially termed a statement" sent to Com missioner Dresel for communication to Dr. Simons. It is dated March 29 and follows:
 AMERICAN STATEMENT
 The American government IS pleased to note in the informal mem- orandum of Dr. Simons the unequivocaI expression on the part of the .Gemran government of its desire to afford reparation up to the limit of German ability to pay. This government stands with the governments of the, allies in holding Germany responsible 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 pr Simons, seems to the government of the United States, the only sound basis on which can be built firm and just peace under which the various na- tions of Europe can accept once more economic independence and stability This government believes that it recog- nizes in the memorandum of Dr. Simons sincere desire on the part of the German government to reopen negotiations with the Allies on new basis and hopes that such negotiations once resumed. may lead to a prompt settlement which will at the same time satisfy the just claims of the allies and permit Germany hopefully to re- new it's productive activities"
 Following IS a paraphrase prepared by
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