The Birmingham age-herald., 1921-03-08
the German cabinet in Berlin. This request, however, was refused.
 SIMONS' REPLY

posalS had been msconStrued.
 For us. just as for you" he said, the disadvantage of a provisional settlement is beyond doubt. But we have taken refuge to such provisional settlement under the pressure of your ultimatum, which forced us to come forward with definite proposals. We should have pre- ferred to put before you plan of total arrangement, plan like that with which we originally started"
 The German foreign secretary ex- plained that he had no second proposal in his pocket and had therefore to try to find a new way, both in the delega- ton and in the Berlin cabinet. He had been charged to ask for a brief delay in order that he might get in touch with the Berlin cabinet. but, he added
 We were refused even this short de- lay"
 Prom this fact" he continued 't already appears that there is no founda- tion for the fear that we should want to make use of the provisional settle ment to reach a revision of the whole treaty after the lapse of those five years"
 "on the contrary, the German nation has undertaken it's obligation of making reparation. and it is ready to fulfill the whole of this obligation to the limits of possibility We are, therefore, ready to enter into the suggestion of the pres ident Of this conference to discuss with the allies that part of the means which would be required for the purpose of reparation by laying aside part of the purchase prices of German goods deliv- cred into the allied countries for the reparation account.
 'I have submitted and recommended this proposal to my government, and can only say I regret that this proposal should have been discredited in public operation in Germany by having been placed by you among the sanctions to be taken against Germany. We agree with the President of the United States also in this point that it would be advisable as quickly as possible to get the fixed sums determined and to have also de- termined the factors of the varied pay ments in case of her economic recovery which Germany will have to make to- ward reparatio
 We further agree with your intention to set up an examination system of the fixed and varied payments to the dlffer- ent countries. These points in our opin- ion should be delberated on by joint committee of experts as soon as pos sible, and can only state it is pity that when these experts meet, the at- mosphere will be embittered by the sane; tions which are to be put into force against us.
 q feel obliged at this moment when the sanctions are definitely going to be put into force against us, to enter once more with all due emphasis protest against your procedure"
 After the recess had been taken M. Laurent the French ambassador to Ser lin, who was present at the sitting, ce- cared there was little doubt that there. would Joe a rupture of the negotiations at-slthe- late afterhoon sitting. At this
 
 British prime minister. would reply to Dr.s Sifnons, German foreign minister who presented new German proposals al the first session today. These proposais, which were declared in French quarters to be unacceptable to the allies, were of a provisional nature, calling for pay ment of fixed annuities for the first i've years. The Germans say they would nave to consult their government and ask a weeks adjournment for the purpose, II required to make proposals covering the total separations.
 Premier Brand of France, on leaving the conference, indicated that the reply of I.lovd George would be firm and posi- tive in tone.
 ALLIES AGREED
 The allies are perfectly agreed as 'o what should be said, he added.
 M Rriand and Lloyd George took
 
 presenting His proposals at the cohier- ence's first session, the German foreign minister. although declining to discuss inc question of the responsibility for the war which he said only history eouiu decide. expressed agreement with MT. Lloyd George that the party condemneo by the peace treaty must pay lh' Germans, he pointed out had maoe p'o nosals to restore the devastated area or been with doubt.
 | pr. Simons deplored the allied disposi- ton to ignore the payments aireaoy made by the Germans. which they con tended should be applied to the repard- tions account, and the alheo persls'- ence in the view that Germany wds | acting in bad faith. He dlscusseo a| length the subject of taxation Tn uer many and in the allied countries. seek iny to disproye the statement by the British premier in his speech on Thurs day that Germany's taxes were lower | than those of the allies
 pr. Simons argued that the taxes should be calculated on per capi'a basis. taking into account the income per capita. He quoted statistics to prove that on the basis of such calcu- l lations the Germans were more heavii! taxed than the English. He declared that even the allies had admitted that | furtber direct taxation in Germany was | impossible.
 LLOYD GEORGE REPLIES After asking Dr. Simons number oi questions. Lloyd George replied: "I am afraid I must tell pr. Simons that there is no doubt as to the answer which the allies must be forced to give I think 1t desirable, in view or the great gravity of the decision. that we should give reasoned reply to his carefullv prepared and clear statement. The interval will also enable us 10 read a full report of his statement" IF Simons and his fellow conferees returned 10 their hotel directly after inc early meeting. They declined 10 comment on the reception their state ment had received
 MT. Lloyd Georges reply to the Ger mans had become known in general way outside before he left the con1er- ence hall and he was loudly cheered as he departed to Downing street. Dr. Simons, in presenting the Ger man viewpoint at the noon conference said that owing to the German counter proposals being rejected. having been found unwo orthy to form even the start ing point for discussion and because or inc inability of Germany to accept tae Paris proposals, eve are under the ne- cessity of abandoning the idea or pre- santing new plans today for total reparations and, despite serious opJec- tions. have reverted to the idea or provisional arrangement" GERMANS WILL APPEAL London. March 7.-Germany will appeai