The New York herald., 1921-12-16
Can Pay Only 200 Millions of
Billion Gold Marks Due
Jan. Is and Feb. Is.
BALKED ON BRITISH LOAN
Hope of Aid From Z. S. Said
to Be Gone-French Cabinet
Will Meet To-day

PARIS, Dec Il ASSOCIATED Press) -
Germany win not be able 10 meet In
ful her reparations payments of
1000 100000 gold marks falling due
January i and February 10 and has
so informed the Allied Reparations
Commission.
A moratorium is not asked for by
the German Government in its note,
which merely lays Germany's finan-
cial situation as existing at present
before the Reparations Commission az
evidence of Germany's inability to
meet the forthcoming instalments,
each of 500 900. 900 gold marks.
Neither is atty release from her obi
cations requested by Germany. which
apparently has left the matter en-
iirely in the hands of the Preparations
Commission.
The last para graph of the brief note,
however, gives strong intimation that
Germany sees no way out of the finan-
ciaI difficulties, except through the So
called Preparations holiday or a delay
of two or three years.
The announcement contains definite
warning to the Allies that similar diff
culties will arise in connection with
subsequent payments. This Is interpreted
in reparations circles as meaning that
Germany will seek further delays and
attempt to force the Powers to revise
the present reparations agreement.
The text of the note. which is signed
by DR.. Wirth, the German Chancellor,
and addressed to the chairman of the
Reparations Commission, follows:
AS I had the honor TO explain to
the Preparations Commission during
it's visit to Berlin, the German Cow
ernment has made every effort TO i'm
sure the payment OF the two install
ments shortly due under the terms
of the schedule of payments of May
5. 1921.
In view of the fact that the success
Of these efforts depended on for
cign loan. and that in transactions OF
this nature the active collaboration
of British nnanciers was absolutely
necessary, the German Government
opened negotiations in England with
regard to this loan.
From competent authority II has
received reply TO the effect that In
view OF the claims now advanced for
the coming year. that is, the financial
obligations Of the German Govern
ment to the Preparations Commission,
such a loan could not be obtained in
long dated loan or in the form OF
short dated bank credit.
Under these circumstances the
Government cannot anticipate the
possibility of procuring the sums
necessary for the total payment OF
the instalments ot January Is and
February Is. 1922.
Even by exerting every effort, and
without considering the require
ments OF her own budget the Cow
ernmcnt cannot procure for these In
stalments, apart from deliveries IN
kind and credit derived from recov-
ory acts sum more than l50.000,-
600 or coo, 900. 900 gold marks.
The Government therefore Is
obliged 20 request the commission
10 extend the time limit for payment
OF a portion OF tho instalments or
January Is and February IS, which
It cannot pay on those dates.
The Government confines itself to
this request, although Il realizes
that similar difficulties will arise In
connection with subsequent pay
nncnts.
President Millerand will preside to-
morrow at a council OF the Cabinet Min
listers at which the German note will he
discussed and the attitude of the French
Government probably determined,
The Preparations Commission also will
meet tomorrow morning, and In repsra-
tions circles tonight the belief was ex-
pressed that ~ would be decided by the
commission TO deefr discussion on the
note and refer Il to the Allied Govern
ments. The note also is expected TO form
the chief topic OF discussion at the APP
preaching conference between Premier
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