New-York tribune., 1921-01-29
British and French View
points Reconciled Over
Proposalto Levy Export
Tax on Nation Products
France May Receive
Inter1lationalLoan
Creditors To Be Paid Ac.
cording to Berlin's Pros
perity Need Ratification
By Ralph Courtney
specsa, Gable to The Tribu,,e

BY Ralph Courtney
Special Gable to The 7riba,tc
Copyright, 1921, New York Tribune Inc.
PARIS, Jan. 2S.-The Supreme
Council to-day reached an agreement
on German reparations, the key of
the proposals consisting of a tax On
German prosperity which will yield
results according to the slow or
speedy revival Of industry in that
country. This solution was well
coined by all the Allies because it
will amount to an export tax on
German products. Germany's pay
ments, under this plan, would extend
over period Of forty-two years,
and would be adjusted from year to
year according to her ability to pay.
Any agreement on reparations ap-
peared impossible yesterday through
out the long session and numerous
minor conferences, but the ingenuity
of the Allied diplomats and their
experts has apparently solved the
problem.
Terms of Agreement
Details of the new scheme are yet
to be finally adjusted, but the fol-
lowing are the general lines:
Germany will pay, roughly, the
same annuities as were discussed at
the Boulogne Supreme Council meet
ings, but added to this will be a
sliding scale tax on Germany's eco-
nomic revival.
The number Of years during which
Germany is to pay annuities will be
fixed, but the total will still remain
indefinite because of the inability to
calculate at this time how much the
proposed tax on German prosperity
will yield.
According to the Boulogne agree.
ment, Germany was to pay 900 ,000,-
100000 gold marks in forty-two an
nual payments. In each Of the first
five years it was to pay 100000
gold marks, during the next five
years 6,000,000,00O, and then 7,000,-
100000 for each of the remaining
thirty-two years.
This new plan will enable Premier
BRAND to go before Parliament and
declare that the minimum amount
which the Allies will receive viii be
increased if German trade becomes
sufficiently prosperous to warrant
greater payments.
Under the new agreement the an
nuities will remain approximately the
same, although the length of time for
the total payments may be extended
or contracted. 1t is probable the first
payments may be diminished, owing to
the German claim that it will be very
difficult to make immediate payments.
Under the proposed system of pay
melts it is believed possible to please
all parties. France, however, is badly in
need of funds at once and it is possible
that in the general relief at getting the
reparations problem settled some kind
of an international loan may be made
TO supply the sums she needs. Another
difficulty which had to be overcome was
Be,gium's priority rights TO the first
two and half billions of German in
demnity payments.
France Forced to Concessions
Roughly speaking, the effects OF the
present agreement will be Identical
with the Boulogne scheme, but it has
the merit of looking better to the gem
eral public. In truth, France has been.
compelled to bow to the figures which
the experts tell her are the most that
Germany can pay.
The present scheme, of course. is
subject to German agreement. but in
view of the fact that it may be possi-
BILE to make concessions to Germany, its
consent is regarded as probable. A
conference with the German repre-
sentatives will be called at an early
date, that the entire matter may be de-
cided finally
Germans increase in yearly pay
ments will be calculated on its trade,
probably on the amount of exports.
The plan is for a tax of from 10 to
Is per cent on the export values.
VIII Help Allied Trade
It is considered that this system
will work out usefully for the Allies
and America in their competition in
the would markets against Germany's
low-priced goods. If the Allies take
fixed percentage Of Germany's export
this will increase the price of German
products, which otherwise, on account
of the low German exchange, might
monopolize world markets.
1t is not certain whether the German
exporters will pay this tax direct to the
Allies or how the German exports can
be controlled, but If America and neu-
trails act unanimously with the Allies
each country could note the German
goods entering its ports. There would
remain one hole in the East for trade
through Russia, but it is thought this
situation could be met by cooperation
with the Russian border states and
Finland. Nothing. however. is certain
regarding this until the final discus-
sions.
The Allies also will enforce adequate
German taxation, and possibly demand
taxes for their benefit on such articles