Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1921-04-05
PREMIER ANSWERS
SIMON NOTE
u. S. Holds Germany is
Morally Bound to Make
Reparations
INTERNATIONAL LOAN
Germany Is Ready to Offer Good Of
fees to France-CommuEication II
Form Gf Memorandum

Washington, April 5.-Paraphrasir:
of the Informal exchanges betgeel
the German and American govern
men:s regarding reparations, in wh.c'
The United States holds Germany
"morall.., bound to make reparation
so far as may be possible" wert
made public today at the State De,
, partment.
Describing the German commuai
cation as an "unequivocal expression
Of the recognition of that obligation
the American reply expresses :hi
hope that renewed negotiations which
Germany says it plans to initiate
..may lead to a prompt settlement
which will at the same time satisfy
the just Claims of the allies and pei.
nit Germany hopefully to renew its
productive activities.
Included in the German communi,
cation is suggestion that the only
solution Of the reparati'ons problems
is an international loan. in favo- OF
which the sll!ed and associated pow
crs would waive the general mortgage
on German assets created by the
treaty of Versailles. In, this connec-
ton the German government says 1t
would not ); be unwilling to assume
the obligation of the interest and the
amortization of the foreign deb5s OF
the allied and associated powers Wi.:l
ii the limit of her capacity
Germany invites the examination
"by unbiased experts Of its own abil-
ity to make payment" and says she
stands ready to meet any pro2osa.
which appears feasible "for the solu-
tion of the economic and financial
problems of Europe"
The1American reply makes no ref
erence either" to the proposed con-
solidation of allied debts as = Ger
man obligation or the suggestion for
the determination 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 devas-
tatet regions. The German govern
ment says it stands ready to offer to
France good Offices and resources an
whatever form is acceptable. |. as
serts that for the immediate rehaSii-
itation of the devastated regions it
has repeatedly proffered labor, tech.
nical advice and material assistan,c,
but that these offers have not been
accepted.
Germany declares that there exists
in France only limited degree CT
concern for the rehabilitation Of the
devastated regions, because advance
;naemn;ties have been given to for
mer occupants of the soil who have
settled in other parts Of France, ant.
the work of clearing the war areas
"has been undertaken Dy influentla:
groups of promoters who are making
no effort 70 eSpediate the performance
of their contracts"
The German communication IS in
the form of a memorandum of Or
Walter Simons, Minister of Foreign
Affairs, dated March %, and transmit
tea through American Commissioner
Dresel. at Berlin, who has had IN
formal conversations with the Ger
man government on the subject fo'
some time. The American reply |:
officially termed Statement" sen
TO Commissioner Dresel for co',nmun
cation to Dr. Simons- It is datei
March 90, and follows:
'The State Department issued tn:
following statement:
"The Secretary of State instructed
the American Commissioner at Dcr
lin to make the following statemen
to the German Minister for Foreig:
Affairs:
"The American government !
pleased in the informal memorandum
of DR.. Simons at the unequivocal eS
,ression IN the part of the Ge,ma
government of its desire to affor
reparation up to the limit of Germa
ability to pay. This government san
with the governments of the all:
in holding Germany responsible fe
the war and therefore morally ooun