Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1921-01-29
REACH AGREEMENT Y.
ON PREPARATIONS
Teuton Delegates Will Be.
Invited to Conference
Soon
TAX GERMAN EXPORTS
France Compelled to Bow to The Fig
ures That Experts Tell Her-Are
the Most That Germany Can Pay

Paris, Jan. 29.-The Supreme Coun-
Gil yesterday reached an agreement
on German reparations, the key OF
the proposals consisting Of q tax-on
German prosperity which will yicid
results according to the slow OF
speedy, revival of industry in that
c.oantry. This solution was welcomed
by all of the Allies, because it will
amount to an export tax On German
products.
Any agreement or roparations ap-:
peared impossible yesterday through
out the long session and numerous
minor conferences, but the ingcrn:tT
of the Allied diplomats and their e:<-
perts solved. the problera.
"Details Of the scheme are vet 70
be finally adjusted, but the following
are the general lines:
Germany will pay. roughly, the
SAME arlnuities rs were discussed at
the Boulogne Supreme Council
meetings, but added to this will be 5
sliding scale tax on Gerlnanys eco
nomic revival
The namber of years during which
Germany is to pay annuisies will be
fixe.s but the total will still remain
indefinite because Of the inability to
learn at tkis time how much the
proposed tax on German prosperity
will yield.
This new plan will enable Premier
BRAND TO go before Parliament ana
declare that the minimum amount
which the Allies will receive will ne
Increased by more if German trade
becomes sufficiently prosperous sp
warrant greater payments.
According to the Boulogne agree
ment, Germany was to pay 26e ,0oo,-
100000, of gold marks in AZ. annaal
payments: IN each Of the first fvs
years it was to pay 5000 yAo0, ,o0o,
during the next five, years G.O00, ,o00,-
600 and then 1000. 100000 for each
OF thu remaining SO years.
Unisr the new agreement these
snnuities will remain approxinsststy
the same. although the length of
time for the tota, payments may BE-
extended or contracted. 1t is proc
able the first payments mey be di-
rninished owing to the German claim
that It will he very difficult to make
immediate payments.
Under the proposed system OF
payments, it is believed possible t.
please all parties. France, however.
is sbadly in need of funds at once, and
it is possible that in the general re
lief in getting the reparations prob
lem settled some kind Of an interna-
tional loan may be made to supply
the sums she needs.
Another difficulty which had to be
overcome was Bclgium's priority
right to the first two and half mil
lions OF German indemnity paw
ncnts.
Rocghly speaking, the effects o.
the present agreement will DO identi-
cal with the BouloSpe scheme, but
i has the merit of hooking better 10
the general pubic. In truth, France
has been compelled to bow to the
figures which.t experts tell her are
the most that Germany can pay.
The present scheme. Of course, is
suhject to German agreement, bot
in view Of the fact chat it may be
possible to make concessions to them
their consent is regarded as probahls.
A conference with the German rep
resentatwes Will be called at an early
date in order that the entire matter
can DC decided finally.
GermanS's increases in yearly pay
naents Will Be calculated on its trade,
probably on the amount of exports.
The plan, said to have been consider
ed this afternoon. is for n tax nf from,
lO-to Is petr cent on the export value;
It is considered that this system
WILL work out usefuliy for the Allies
and America in their competition r
the world markets against CO.
any's low priced goods. If the An;s.
take fixed percentage of Germany,
export this will insresSe the price {
German products, which otherwis
many's low priced goods. If the Ali,
change, might n,ononoliss wor,
markets..