Evening star., 1921-05-04
Financial Plan Being Split
Into Legal Portion and Part
Related to Guarantee.
BERLIN DENIES REPORTS
OF ANOTHER PROPOSAL
U. S. Invited to Name Member of
Supreme Council-German Cab
met Crisis Looming Up.
By the Associated Press

'i pldH ioI 'Siihd
which seemed to De completed docu-
ment yesterday. was being separated
| today by members of the reparations
| commission into two parts. One OF
! these is the purely legal portion. con-
! forming to the treaty of Versailles.
while the other chiefly relates to the
guarantee bonds. which it is planned
| to issue as security for the German
! payment. and the rates Of interest
upon these securities, these questions
| being outside the provisions OF the
| treaty.
1t is not possible to determine yet
precisely what specifications will be
| presented to Germany, but according
| to present intentions the reparations
commission will send to the German
government Friday bill OF liabilities
strictly in compliance with the peace
| treaty, while simultaneously the
! allied governments will send another
| part of the plan, as modification OF
the treaty favorable to Germany. and
| which she can accept or not.
Form Being Studied.
| 1t was explained today that what
| was being studied now were Ques-
| tions of form rather than of essen
| tials.
Members of the allied reparations
| commission were in this city today to
receive from the supreme allied coun-
| Gil the ultimatum to be sent to Ger
many, which was considered to be
| the final word OF the allies on the
reparations question.
The supreme council reached an
| agreement yesterday regarding the
details Of the ultimatum and the
| late last night in completing the
document. which was ready for pres
| entation at today's meeting of the
council.
Berlin this afternoon says there IL
| no foundation for the report that
Germany had made a new repsra
tions offer to the allies.
Rumor. of New Offer.
| Rumors were current in this city last
night that Germany had present."
new reparation proposals through DIR
Stahmer. the German ambassador. VIII"
| paid a call at the foreign office. Moth
| ing authoritative was learned regard
| ing the subjects discussed during his
| visit.
| An invitation has been sent to Wash
ington inviting the United States gov
| ernment to appoint representative
! who will act as a member of the su-
preme council. The United States is
also requested to name delegates I"
| the reparations commission and the
| council of ambassadors, this was
| probably the most useful piece of
| work done at yesterdays session OF
! the supreme council. said the Daily
News this morning.
Total Il fe,75O. 100000.
The total sum which Germany will
be called upon to pay has been in
! creased to 6,750.000.000 pounds ster-
ling by the inclusion of the sum due
Belgium on account of her debts to
the allies.
Under the bonding scheme to guaran-
tee the payment Of 100.000.ooO pounds
1Ix- v,l,,c y,or IN
man exports, 600. 200, 900 pounds in bonds
will be issued when the ultimatum ex-
pires or Germany accepts the terms.
Bonds to the amount OF 1,S00.0O0.00o
pounds will be issued in November. The
balance, 4.250,000.O00 pounds. will be
issued in accordance with 'Germany's
capacity to pay. That capacity will be
gauged by the product of 25 per cent on
exports.
Besides the per cent interest on the
bonds an additional l per cent will be
imposed on them to form a sinking fund.
The amount required for service bonds
will be thus 2.50o.oo0.o00 pounds.
Reserve Could BE Issued.
Should the 100, 900 pound annuity
and % per cent on German exports
amount to more than the 150.000.000
pounds required for interest on the serv-
ice bonds, to be issued Immediately and
in November a sufficient amount Of the
remaining bonds held in reserve will be
automatically issued in order to absorb
the balance.
There will also be an addition Of /
per cent on German exports for the
purpose of providing a fund to pay
the interest on the bonds held in re-
serve. Interest on any bonds paid OF
will continue for the purposes of the
sinking fund. 1t is calculated that
these bonds will be redeemed within
thirty-seven years from date OF
issue.
In no case, according to the scheme.
will Germany be paying more than
ing fund on the total debt of $780,
900, 900 pounds. These amounts are
to be a charge on German customs or
any other revenue that the repara-
tions commission is prepared to ac-
cept.
Commission to Take Bonds.
The reparations commission will re-
ceive the bonds and apportion them
among the allies in accordance with
the Brussels agreerent. Each power
will dispose of them or hold them as
it pleaSeS.
Fifty persons making up the staff
of the allied reparations commission
to this city from Paris. The COM
mission brought large quantities of
documents which will be used in its
conferences with the supreme allied
council.
Marshal Foch and Admiral Grasset.
commanders, respectively, of the mill
tary and naval forces of France, left
for Paris this morning.
German Cabinet Meets.
BERLIN, May 3.-The German cab
met met this forenoon in anticipa-
tion of discussing developments at
London meeting was held yester-
day, but no action was taken relative
to reparations problem.
Just how long. the Fehrenbach
ca binet will continue in Office Is be-
lieved to depend on the nature of the
ultimatum being sent to Berlin by the
allies and the attitude assumed by
the reichstag. The parliamentary
situation had not been wholly clari-
fed last night
While the Berlin government was
not unprepared for the answer con-
tanned in the American State Depart
ments reply to Foreign Minister
both the foreign minister and
his colleagues in the cabinet had
hoped that Secretary Hughes answer
would be a trifle more precise in in
the American Interpretation
of clear. definite and adequate pro-
posals." To this extent the American
answer left the cabinet in a confused
state of mind, it was stated.