The New York herald., 1921-03-04
GERMANS PREPARE
TO YIELD AT LAST
cont.nued from FIRST PAGE.

chequer receipts for the amount which
has been retained here.
Again. as at Spa. the final answer Of
the Germans depends upon the interior
political situaton Of Germany. and DR..
Simons since the conference adjourned is
keeping the wires to Berlin hot with
messages while preserving absolute ST.
lence regarding the next move. which as
the result OF to-dsy's Developments Is
clearly up TO the Germans.
Tai;in. the stua tion just as II was left
to-day following the memorable session
at ST. Jsmess Palace IL appears to be
closely analogous to the last days OF the
peace conference and to the crucial days
at Spa when each occasion was followed
by German submission
Stern and unbending as the Allies APP
peared to-day, menacing as Is their
mailed fist which on Monday may fall
with heavy weight upon the German ma
ton in the occupation OF their richest
coal district and the subsequent seizure
Of some of their customs, the outstanding
fact in the days developments Is that
the Allies stand ready to negotiate once
more with the Germans II only they viii
accept the Paris total
In the words OF one OF the principals
OF to-day's encounter: '.1f by Monday
the Germans bring in a new proposition
Allies stand ready to examine it care
fully. but il they refuse the sanctions
viii apply immediately
In other words the Germans need only
10 accept the total indemnity fixed al
Paris III order 10 discuss with the Allies
the means or pay Sment. the wisdom Of
the IL per cent. additional indemnity
measure and the cooperative attempt 10
finance the obligations with America
aid
II is apparent. however that first the
Germans must accept the allied figure
OF lepataton payments already made.
which is IL, 900. 900, 600 gold marks in
stead Of the 10000. 100000 az the Ger
mans insist Second. that they must
take the allied discount figures OF 3D.
900. 100000 marks for the present value
or the Paris agreement.
There remains a difference OF 11.000.-
100000 gold marks il the reparations
already paid by Germany are to be in
clnded in the Paris figure and $4,000
100000 gold marks il they are not to
be included under the French eonten-
tion. which seems 10 be supported by the
British.
Dr. Simons is believed to be stressing
this Tonight and urging the German
Government to yield az the Germans did
at versailles-contesting the possibility
or execution. but promising fulfilment
II possible.
The German position is being guarded
with the strictest secrecy tonight. 1t is
no secret, however. that their reticence
is largely the result of the delicate sit
uation Dr. Simons has to meet at home.
If Or. Sirnons appears in the guise OF
yielding entirely to the Paris decision
which seems tonight TO be the sine qua
noM to the Alllies's terms, 1t is said he
will either be ousted from the Berlin
Cabinet or will himself feel compelled
to resign. Nevertheless the entire Ger
man argument outside the conference
has been that DR.. Simons's offer was the
practical equivalent OF the Paris terms
and there are many voices whispering
about the Savoy Hotel-whispering Ger
nan---to the effect that DR.. Simons
made fatal tactical error in not con-
veying the impression at st. James's
Palace Tuesday that he had in effect
acce.red the Paris terms.
There is one hopeful clement III the
German situation. Denying themselves
TO all callers, DR.. Simons and his coll
leagues are crowdng the wires and
wireless between the Strand and Will
helrnstrasse. 1t is pointed out that the
one great advantage in DR.. Siuons's
position is that he is here as a delegate
with limited powers. Both the German
Cabinet and experts have remained In
Berlin and upon them rests the real
framing of the German reply as well
as the ultimate action upon any develop
ments here. They may yet pull DR..
Simons out of the hole.
One of the things frankly recognized
by the German delegation is that
Premier Lloyd Georges speech this af-
ternoon was an appeal over the heads
of the delegation and the Government
TO the German people. The greatest
fear is expressed as to what reaction
there will be when this indictment Is
read. as il is so contrary to the pleas
DR.. Simons put forward throughout his
preconfercnce campaign in the German
provinces.
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