The New York herald., 1921-04-20
New German Proposals.


News reports from London and
Paris, as well as from Berlin and our
own Washington, point clearly to a
reopening of negotiations between
Germany and the Allied Council over
the reparations payment. From the
Berlin Bureau Of THE NEW York
HERALD in particular come specific
details of the new proposals which
Germany will offer.
OF prime Importance, Of course, Is
the information that Germany will
agree to pay a vastly bigger indem-
nifty than was offered at London. 1t
is said to be within 10 to 15 per cent.
of the 226,OOO,O0O,000 marks de-
manded by the Allies at their Paris
conference, and on the face Of 1t this
looks distinctly favorable to a set
tiement. 1t is always to be remem-
bered. however, that much must de-
pend upon the methods suggested for
working out the payments.
There being no possible way for
GernSDny to step straight up and lay
down the indemnity on the interallied
counter In hard cash, there being no
way, in fact, for Germany to hand
over goods to any considerable ex-
tent, even at leisurely pace, without
getting raw material and other sup
plies from the Allies and the rest Of
the world on credit, every single
item that will be accepted by the
Allies on account goes into the reck-
oning of the possibilities as assets
and resources of the debtor.
Germany's probable offer, however,
to put labor, construction equipment,
materials and other supplies into the
devastated regions of France and to
rebuild them as part payment is not
what the French want. THE New
YORK HERALD, indeed, understands
from high and responsible source In
France that her Government would
not entertain such proposition in
Its entirety, although beyond question
materials. machinery and other con-
struction equipment for the rebuild
ing would be accepted as part pay
ment. The actual work to be done,
the French have been insistent, shall
be by French hands, the costs of that
labor being met now or later out of
German reparation payments.
Again, the Germans are eager to
assume as part payment Of their In
demnity debt to the Allies the war
debt of the Allies to the American
Government But 1t takes the United
States to make a bargain like that,
and whether the proposal should
come from the Germans or the Allies
or both, the American people never
would permit a shifting from the
Allies to the Germans Of the greater
part or any part Of that ten billions
of dollars OF war debt now owed us
by the Allies. 1t Is Of no use for
anybody TO give a single thought to
any such international plan that SIM
ply would make us the Allies bill
collector.
This whole question, then, comes
right down to the exact spot where
II was before. This Is how much can
Germany pay as the limit OF her
economic capacity, what trade and
credit accommodation will be given
her to pay II, and what time will It
take to clean up the score?
AS to Germany's economic capacity
to pay, clearly, under favoring cir
cumstances, II Is huge II she Is willing
TO agree to come anywhere near the
Paris conference demands.
AS to the time limit Germany, no
less than everybody else. viii want TO
have the vast debt burden over with
In the least time II is financially,
physically and morally possible to
clear IL up.
A for the credits, without which
she can pay relatively little, not only
every Allied nation that Is going to
get direct reparatlon returns, but
every country that expects to gain
benefits from the economic restora-
tion Of Europe. including the Central
Powers. must come In with Its par
ticipatIon In the extension Of cred
It's Especially must tho r.ited
States come In, and come In freely,
literally and resolutely. not as mere
bill collector for the Allies, but as a
plain business proposition to look
after our trade interests to-day and
our economic position In the world,
now and hereafter.