The New York herald., 1921-03-03
GERMANS WOULD
EAGERLY DISCUSS
ALLIED DEMANDS
Want to Debate Amount Al
ready Paid and Interest
on Balance.
HOPE L. S. WILL HELP
If Allies Have Another Es-
innate, Let Us Arbitrate,'
Is Herr Schroeder's Plea.
ANSWER TO EVERY CRITIC
Nothing They Would Like
Better Than Arbitration With
American Bankers Deciding.

]
4 Special Gable to THE New YORK HEEALo.
Copyright. 1891. by THE New YORK HERALD
\ New York Herald Bureau.
London. March 2.
I The German delegates to the repara-
tions conference tonight indicated
their willingness to discuss two of the
main points upon which their Offers
have been said 10 differ from the Paris
demands-the amount OF 10000, 90
gold marks which they claim as hav-
/ ing already been paid in one way or
another as reparation, and the inter
est to be charged upon the amount OF
the balance remaining uncovered by
the hope that the United States might
participate in such arbitrations.
Twenty billion gold marks Is our
estimate as to what has already been
paid" Herr Schroeder OF the German n
Ministry OF Finance told the correspond
eut for THE NEW YosE HERALD But
If the Allies have another and less esti-
mate let us submit it to arbitration.
/
annuities at per cent and envisaging
only per cent. upon our deferred pay
ments. Well that per cent. is the
claim We make for rebate. We think il
is all Germany can pay. But II Paris
thinks We can pay more we are willing
to arbitrate that, too. In that respect
our word is not final. There is room
for negotiation
Deny Climbing Down.
! In this sense the Germans are said in
some quarters to have climbed down
from their attitude OF flnality reflected
publicly before the conference and pri-
vately yesterday. They deny this. They
say that the apparent, concessions are
all contained in either the verbal or
written presentations made by DR..
Simons before the conference yesterday.
I Point BY point Herr Schroeder went
\ over the entire list OF criticisms the
/ Allies have made through the press and
are likely to make tomorrow at st.
\ James's Palace.
4 For each criticism, Herr Schroeder not
only had reasoned out an answer based
/ upon something Or. Simons had said or
/ written. but nc had an argument show
\ ing that the German offer az it had
\ been read was within the strict terms
of the treaty and the Paris demands.
This time we arc observing the treaty"
7 Herr Schroeder said. III the Allies at
tempt to enforce the sanctions against
\ the paipable evidence of our good faith
\ even by their own standards. they will
\ start on such career not only against
the united determination OF the German
people but against the solid conscience
Of the world.
There Is nothing we would like better
than arbitration on this point. We wish
! devoutly that this might be consum-
mat ted. 1t is matter OF business and
! not politics. II Is the business men and
/ the bankers of the world, especially or
the United States, whose surplus funds
will be called on to help reconstruction
under whatever plan is decided upon.
who should have the determining say in
these matters OF opinion and relative
proba bilities. But l fear II won't be set
tied on a business basis. fear the poll
tlcians won't gee the real facts.
Against our contention that tho total
sum TO be paid must be discounted al y
per cent. they Say that the treaty only
permits such discount for sums paid
during the first two years. Who can
say that we won't. through loans. &c.
pay all during the first two years. n
we are able TO raise the entire sum in
the first two years we are entitled TO
per cent discount After the first two
! years we are open TO reason AZ 10 the
rate of interest applying TO the balance.
But as we are proposing immediate pay
mcnts OF some sort they must reduce
all payments for purposes of considera-
ton on that same basis OF immediate
payment whatever deferments may later
become necessary.
"They say we are wrong in demand
fpU .has haC oil
paid Well, the Paris decisions did not
mention Il at all. We are entitled to
presume that the Paris terms were laid
out for payments on what was due. Ger
tainly what has already been paid Is not
| due"
Asks world Sacrifice.
''The reparations problem concerns
the whole world. The whole world is
interested In finding the cash 70 pay
the way out OF the present difficulties
from which the whole world suffers
! Therefore the capital OF the whole world
should participate in the reparation cf-
fort
"Dr. Simons says frankly that he IN
asking n sacrifice OF some or the inter-
ests OF the whole world but the sacri-
nee is enlightened selfishness. Suppose
one country, say America, takes UP q
Z
issue at per cent The interest would
be 10000. 900 marks and supposing that
tho taxes. exemption Of which for this
issue we ask, amount to 20 per cent. nf
the interest That would be 100000
marks--or | per cent yearly on the
total loan 10 be taken up.
This may be regarded as o sacrifice.
/ but America for instance, to-day cannot
export cotton or manufactured goods or
corn or copper 10 Germany or any OF
the countries where the exchange has
deprecated Would 100000 marks be
0 heavy price to pay for the increase "
business consequent TO the restoration Of
exchanges oncc Germany is financed
, and other countries have reparation
cash in their hands?
we expect to make a part Of the
loan issued In each country tax exempt
In that country only and with exenip-
tions conforming TO local conditions. Tho
part OF the loan taken up in one country
would not be tax exempt IN another
country"
Here Herr Schroeder made one Of the
most astonishing OF ell his declara tions
GERMANY" he said is willing TO take
large part OF the loan herself---one or
two billions A huge amount OF German
capital is beyond our control There IA
also large amount OF foreign money
actually in Germany upon which VIC
can't lay our hands. The moment we
grant tax exemption TO that money II
will come back into the resources Of
Germany and viii be svsIsble for this
,oan.'