The New York herald., 1921-03-07
GERMANY LIKELY TO
ACCEPT NEW PLAN
Continued from First Page.

and not TO hold one would be stain on
their honor.
The allied leaders then went into an
other conference, at which was evolved
the latest scheme. The attitude OF
to-nights conferences was conveyed to
the Hotel Savoy, where It is reported DR..
Simons and his colleagues are still
working far into the night.
The Germans virtually admitted this
evening that there is feature In their
proposals which would. II accepted.
eliminate the 12 per cent. tax OF the
Paris scheme On the other hand. great
emphasis Is laid by the Germans on the
fact that they hadn't and wouldn't ac-
cept the Paris totals. preferring the
operation OF the threatened sanctions to
this.
IF Dr. Simons were to accept these
figures tomorrow" said German
spokesman. ''he'd lose his job before he
returned to his hotel"
The Germans have 30 far refused to
exclude the reparations they have al
ready paid from the total indemnity.
They seem. however. to have seized
upon a suggestion by Lloyd George as
way out Of their dilemma.
Premier Lloyd Georges scheme did
not meet at first with great favor in
French circles. one objection being that
II would benefit German exchange with
America and bring the United States
and Germany together commercially
against the Allies.
Lloyd Georges plan was based on
80
1t provided that the allied countries
would have to pay only half the value
of the goods to the German exporter.
the other half being retained by tho
Allies for reparations. while Germany
by taxation would reimburse her export
ers. This plan was suggested by Lloyd
George as basis for possible COM
promise and as a method OF solving
the vexatious problem Of how the Allies
could collect the German indemnity
without injury to themselves. 1t was
even suggested that some OF the neu-
trails might be willing TO apply this
plan for the benefit of the Allies. al
though no one has mentioned the United
States In this connection.
Though each ally would do the col
lecting Of the percentage held back on
the value of German goods entering It's
be pooled for division among the Allies
according to the scale arranged at the
Brussels conference.
While this conference was going on
the Germans remained at their hotel
their looks betokening the extreme grav-
fty of the situation. The meeting Of the
supreme council lasted until late, with
indications that the British were exert
ing great pressure on the French to
avoid a fiat rejection at to-morrow's
meeting. At It's conclusion Premier
BRAND and NJ Loucheur. Fastening to
their hotel, called a meeting of the
French delegation. which later was at
tended by the Belgians.
These two nations having relatively
the most at stake In reparations, 1t was
assumed that the British had put UP
the situation squarely to them. indicat-
ing that they must take the RESPONSE
bility II any break occurred tomorrow.
There was every indication in to-day's
developments that the situation had
reached decisive stage. making to-
morrow's session perhaps the most
critical In the fortunes Of Europe since
the war.
While not accepting the Paris figures
exactly, the Germans were creditably
reported tonight to have offered a new
way Of measuring the indemnity by
Germany's economic progress. which at
first glance seemed to strike the British
more favorably thar the French.