The Washington herald., 1921-04-05
HUGHES MENTIONS
new CONFERENCE
ON GERMAN DEBTS
u. S. Note Shows Faith
In Honorable Intent
Of Germans.

Possibilities Of renewal of ne
gotiatons between the allies and
Germany looking to a change in the
situation were sug-
gested in an exchange of notes De-
tween Secretary of State Hughes
and DR.. Walter Simons. the German
minister. made public. yes
terday.
The informal memorandum OF the
German minister was cabled to the
State Department under date of
March %. The reply of the United
States was transmitted on March
2s. shortly after the arrival Of for
mer Premier Rene viviani in WASH
ington.
stands with Allies.
+ In this note Secretary Hughes
says This government stands with
the government of the allies in Mold
ing Germany responsible for the war
and therefore morally bound to
make reparations, so far as may be
possible. The recognition. Of this
obligation. implied in the memoran-
dunn of DR.. Simons. seems to the
United States the only sound pasis
on which can be built a firm and
Just peace under which the various
nations Of Europe can achieve once
mere economic independence and
stability"
At the same time Secretary
Hughes says, and on this point ex-
perts suggest a reopening of ncgo-
t.ations, This government believes
that II recognizes in the memoran-
dunn a sincere desire on the
part Of the German government to
reopen negotiations with the allies
on a new basis and hopes that such
negotiations, once opened, may lead
to a prompt settlement"
Question of Loan.
In his memorandum DR. simons
takes up the question of an inter-
national loan. or credit. to tenn
porarily take care of demands for
cash reparation.
He also makes the statement that
the German governments offer to
rehabilitate the war-torn areas in
France has been rejected; that ma
tives of the section who have been
paid indemnities have moved away
to other portions of the country, and
that Frence prefers to have the evil
dence of war remain as 1t is as a
visual demonstration.
Text or Note.
The note of DR.. Simons follows:
1T is the earnest desire of the
government of Germany to reach an
accord with the governments of the
allied and associated powers, and It
is sincere in its purpose to meet
their requirements as far as pos
sible. That an agreement was not
reached at the Conference of Lon
don on the question of reparations
Is q matter of extreme regret to
the government of Germany. In
their rffort to reach an agreement,
the delegates from Germany went
far beyond the limits considered
possible for Germany In the judg-
ment of an overwhelming majority
Of her economic experts.
TT has been asserted that Germany
Is reluctant to recognize her obliga-
tion to make reparations. This Is
not correct. 1t is entirely clear not
only to the government of Germany,
but to the German people also. that
Germany must make >reparation to
the limit of her ability to pay. This
realization on the part of Germany
will not be altered in any way by
any changes which may take place
in the internal politics of the coun-
trv. Every responsible group. par
ticularly the workmen. Of Germany,
are imbued with the determination
to do all that lies IN their power to
help in reconstructing the regions
which have been devastated. Fun
damental to this determination In
the sober conviction on the part OF
responsible circles in Germany that
an carly removal of all traces of the
eevastations caused. In France is to
the best interest Of Germany. It IL
the consensus of opinion. also, that
the proposals made byA AGermany In
regard to reparations mhst consider
fully the financial necessities Of the
allied and associated governments.
and particularly Of France.
Foreign Exehange.
I'm view of the foregoing. two
in regard to repara-
tions present themselves, both Of
which are Of Importance. These
considerations are. nrst. the matter
of the rehabilitation of the devas-
tated regions. and. second. the Inn
mediate establishment by Germany
of an actual sum of cash money.
in foreign exchange. Of important
proportions.
In addressing ourselves to the
nrst p9rticular. namely. the reha-