The Birmingham age-herald., 1921-03-02
ALLIED ULT|MATUM
 IS EXPECTED REPLY
 ID HUN PROPOSALS
Bulletin issued Says Judicial and Military Advisors Will Be Consulted on Pro-
 posed Measures
By Associated Press

London, March 1.-When the Ger man delegates faced the allies around the table in Lancaster house today with the object of coming to final settlement of the German indem- nity, gulf was revealed even wider than any predictions had forecast. Germany's counter proposals fell so short of the allied programme drawn up at Paris that the British prime minister declared:
 The German government appears to have a complete misunderstanding of the realities of the position" and terse- ly adjourned the conference after pr, Sfmons, the German foreign secretary, had presented the document and tried to advocate its reasonableness. The belief prevails iu the nIiicd camps tonight that the neg0tia- tioDs have ended, and that the aI- lies are on the eve of action. Their reply is expected to be an ultima tum, clear and imperative. The following bulletin was issuee after brief meeting of the heads or the allied delegation this afternoon:
 Tt was decided to consult the judi cial and military advisors tomorrow with view to informing the German delegation on Thursday as to tho IT easures the allies propose to take.'
 The word measures and mention iof only the judicial and military ad- visors are considered significant.
 DR. SIMONS' OFFER
 pr. Simons offered what experts es- innate would amount to 2,500.000. 900 pounds sterling, of which Germany claims 1000 000 900 pounds sterling al. ready has been paid in money and sup plies. This is coupled with the condi- tions that Upper Silesia remains Ger man and Chat free commercial privi- HleEes shall be restored to Germany throughout the world.
 Compared with this proffer, the a1- lies' terms required the payment of II, 300, 900, 900 pounds sterling and the lowest Germany was expected to put forward was something over 1000. 900, 1000 pounds sterling. while Germany wanted 400, 100000 sterling raised by German foreign loan, in which she pr ofesses 10 believe America would eos operate s s s,
 The German delegates still are of the opinion that their proposals ana the statement of Germany's economic conditions may be taken as basis fot discussion
 An advance into Germany by the allied armies is in no wise assured, even if the allies feel obliged 10 give Ian ultimatum. Economic pressure may be attempted instead
 No support for the further use of the soldiers has developed in England, and if an advance movement is under taken it will be a French and Belgia. measure, in which Great Britain will |co-operate only from loyalty to the Iallies.
 The English generally feel that the. have only a secondary interest in the indemnity questions. because they have gradually become rAconciled to the be- lief that they will ger little out of Germany at the best.
 LOAN PROPOSED
 Tn order to make the German obli- gations available, Dr. Simons suggest ed an international loan Of which the interest and sinking fund would be paid by the Germans. the loan to total not more than 30000. 100000 gold marks. However. as the world market W ould not at present support so large a figure he said a beginning would be made by loan of 5000, 900, 900 gold marks. This loan. the foreign minis ter declared, should have certain priv |ileges namely, exemption from tax ation in all countries. This, he con. |ceded. presented difficulties, but these |could be overcome in view of the ad- |vantages 10 be gained by settling the question of reparations and by the re- duction of armaments, which would result from the establishment of world peace.
 The situation of Germany will not all low her at present to pay more than .0G0. .000,000 gold marks annually, Dr. Simons asserted. in addition to the carry ing of the proposed loan. At the end of five years. he continued. it will be neces- sary for the allies to meet the Germans again in order to draw up a plan for mobilization of the remainder of the Ger man debt It was necessary to add. he said. that during the first five years Germany could pay mainly in kind and in work.
 CAN'T EXAMINE PROPOSALS
 At the conclusion of the German for eign minister's statement, MT. Lloyd George replied in the name of the allies. who he said were unanimous this point that he did not think it neces- sary that the explanation of the Ger man experts should be read, as Dr. Simons had proposed. as their memo randa. could be studied later. He added |he could not conceal from the German minister that the proposals indicated complete misapprehension of the situa- tion and that "the allies already arc agreed that the proposals made cannot be examined or disclosed"
 Notwithstanding MT. Lloyd GeorgeAs blunt refusal of the German terms pr. Simons and his fellow delegates have not lost all hope.
 "It looks like refusal" was the of ficial statement given out in their be- half, 'but we still are. hopeful that after the allies have carefully perused our counter proposals and documents they will find there really is something in them to justify our decision that we have offered the maximum possible, ar rived at after long consideration. They were the decision of the cabinet and while the delegates are prepared to dis cuss thep they are not empowered to change fhem.'
 Asked whether the delegation was pre- pairing to return to Berlin. the official making the statement replied: '.No. we will await the allies further consideration of Dr. Simon's statement. Mr Lloyd Georges rejection was cas- ual one. arrived at after cursory consult tations with few conferees," Many Liquor Cases