The New York herald., 1921-03-02
GERMANS SUGGEST
ALLIES MAKE LOAN
DR.. Simons Explains Method
by Which Victors Would
Lend Cash to Losers.
TWO CONDITIONS IMPOSED
Teutons Want Upper Silesia
and Free Restoration of
World Commerce.
BIZ the Associated Press.

German Foreign Minister. in presenting
Berlins proposals. said Germany would
pay fifty billion marks. subject to the
various discounts and reductions and the
sums already paid. A hasty examina-
tion by the French delegation OF the
written proposals of the Germans indi-
Gated that after the reductions Germany
would pay about thirty billion marks
(abo"t s7500.0o0. 0.000).
IAdvices to official circles in Washing
ton to-day said that Germany had sub
n1itted to the allied reparations commits
sion a list Of reparation payments made
Up to January 2l last amounting to
2l.000. 900. 900 gold marks or approxi-
nately $3.50 100000. but that the Rep
arations Commission had valued the
German payments at one-tenth OF that
totaLi
Premier Briand said that the pro-
posals We're SO drawn they amounted
to an offer that If the Allies would
advance Germany money on favorable
tarms, then Germany would pay them.
The Germans apparently figure that If
the capital sum OF about thirty billion
marks were taken now 1t would amount
to about 220. 900. 100000 marks in forty
two years at 5 per cent. The diff
Guilty, however. 1t Is pointed out in allied
quarters. is for Germany to obtain these
thirty billion marks without the Allies
doing it largely for them, which the
Allies regard as wholly unacceptable.
DR.. Simons said the difficulties which
rendered the acceptance OF the Paris
reparations proposals impossible were
due to the fundamental controversy in
yolving on the one side the raising Of
Germany's productive efforts to max
imum in order to enable her to meet her
obligations. and. cn the other the pre-
vention OF German competition becon-
ing menace to other nations
Tho Paris proposals, continued the
German spokesman, contemplated the
payment of annuities OF 6,000000.000
>lnarks gold. and all were agreed that
the only manner In which this amount
could be paid was by surplus Of ex-
ports. The German experts had de-
clared. however. that In order to meet
these annuities the German exports
would have to be four times as great as
the annuities. and the forcing up Of the
German export trade to this figure. he
said, would constitute serious menace
to the rest of the world.
The Foreign Minister'S reference to
the proposed export tax Of 12Ja per
cent. was that 1t must either be paid
by the consumer, If the price could be
forced UP, or by German industry, which
would thereby be weakened in its power
TO compete. The result would be that
the exports would decline.
The German Government, declared
DR.. Simons, believed the Paris proposals
We're based on a too hasty conception
on the condition OF German industry.
Germany was now able to export, he
pointed out because of the favorable
exchange rate and the low cost Of pro-
ouctfon, and these conditions probably
would not be lasting. They really rep
resented an unhealthy condition In Ger
man industry he declared largely due
to the state Of the currency.
DR.. Simons then asked that the pay.
ments be not spread over too long a
period. as the Germans might not be
willing to work III they saw their grand
children and great-grandchildren too
heavily saddled with debt"
DR.. Simons then asked the fixing Of
the total capital sum, on which Germany
would pay interest and provide a sinking
sum, in the usual way. He said that
IL the Paris annuities were discounted
at per cent their values would be
So.000.o00.000 gold marks. but that there
was dispute over the payments already
made. These were estimated by the Ger
mans to be equivalent to 1000, 600, 900
pounds sterling. He declared Germany
was willing to agree to the appointment
of joint commission to investigate the
value of these Items already paid.
In order to make the German obliga-
tlcns available, Or. Simons suggested an
International loan OF which the interss,
and sinking fund would be paid by the
Germans. the loan to total not more than
thirty billion gold marks. However. as
the world market would not at present
support SO large a fgure. he said a be-
ginning would be made by a loan of
eight billion gold marks. This loan, the
Foreign Minister declared, should have
certain privileges. namely, exemption
from taxation In all countries. This, he
conceded, presented difficulties, but these
could be overcome in view OF the advan-
tages to be gained by settling the Dues
tion Of reparations and by the reduction
Of armaments which would result from
the reestablishment OF world peace.
The situation OF Germany will not
GLOW her at present to pay more than
one billion gold marks annually DR.
Simons asserted. In addition to the car
rying OF the proposed loan.N At the end
OF five years. he continued. II will be
necessary for tho Allies TO meet the
Germans again in order to draw up a
plan for mobilization of the remainder
OF the German debt 1t was necessary
to add, he said. that during the first
five years Germany could pay mainly In
kind and In work.
The German financial proposals. It was