Evening star., 1921-03-01
Lloyd George Calls Prop
OSition Not Worth While
Discussing.
TEUTONS ARE DEPRESSED
BY STAND OF THE ALLIES
DR.. Simons at First Reparations
Parleys Tells Why Nation Can
not Meet Paris Stipulations.

| Lo-NDON, March l. - beIIhdHy
through her delegates to the confer
ence with the allies here today, made
reparation offers of approximately
thirty billion gold marks. or about
$500. 600, 900.
| The German financial proposals, il
was learned, were made subject tc
| two conditions:
| First-That the plebiscite in Upper
Silesia should result in favor of Ger.
many.
| Second-That Germany should have
restored to her free commercial priv.
| ileges throughout the world.
| After DR.. Simons, the German for
eign minister. had finished his state
ment on reparations to the conferees
Mr.. Lloyd George, the British prime
minister, replied in substance that un'
| less the Germans had something more
to offer than appeared in DR.. Simons
statement there was no need Of con
| tinuing the conference.
Mr.. Lloyd George told the German
foreign minister:
IF the written proposals are Of
the same general character as the ex'
PLANTATION OF them it isn't worth while
for US to read them. You have a com.
plete lack Of comprehension Of the
| position of the allies and of your owr
| position. We will discuss among our.
selves our reply and give it to yor
tomorrow at II o'clock"
Germans Leave Depressed.
When the Germans left the con-
ference they appeared to be greatly
depressed Premiers Lloyd George
| and BRAND were smiling as they
came from the conference chamber.
The British prime minister opened
the conference by saying the allied
ceive the German reply to the de-
cision Of the Paris conference. The
German foreign minister was then
given the floor.
prepared two written propositions
most carefully, and after profound
study Of Germany's resources and
possibilities. They had been engaged
in this work up to the moment OF
their departure from Berlin. the Ger
therefore had not been able to COM
municate their proposition in ad-
vance.
Terms Wound Up in Lsan.
DR.. Simons then. in effect. said
Germany would pay $4,000, ,oo0, 200
| marks, subject to the various dis
counts and reductions and the sums
already paid. hasty examination
by the French delegation of the writ
ten proposals of the Germans indi-
Gated that after the reductions Ger
many would pay about 10000. .000. 900
marks.
(Advices to official circles in
many had submitted to the allied
reparation payments made up to jan
uary 81. last, amounting to 21,o00,-
100000 gold marks. or approximately
$3.50. .000.0 .000.t
Premier BRAND said that the pro-
p0sas we're 50 1 drawn ,Sst Il fhat they
weuld advance Germany money on
favorable terms, then Germany would
pay them. The Germans apparently
figure that If the capital sum of about
30.00e. .000, 900 marks were taken now
1t would amount to about 100000
per cent. The difficulty, however
it is pointed out in allied quarters. is
for Germany to obtain these 30.000.-
900. 900 marks without the allies doing
it largely for them, which the allies
regard as wholly unacceptable.
BRAND Sketches HimseIf
While DR.. Simons was making his
sketching on a pad of paper before
him. He drew a caricature of him.
self, with long hair and baggy trous-
ers and wrote under it:
"The little Breton listening with
curiosity to what the bocbe have to
NJ. BRAND passed the drawing to
Mr.. Lloyd George. who smiled and
said:
"From the way things are going, in
another ten minutes we shall have to
pay
Among the most important points in
the proposals advanced by DR. Simons
were his insistence that the total
capital sum Of Germanv's obligations
be definitely fixed. and his representa-
tion that Germany was expected to
reach her maximum capacity to pay
in 1926. when the Germans propose
another arrangement shall be entered
into for payment of the remainder
within thirty years.
DR.. Simons said the difficulties
| which rendered the acceptance Of the
| Paris reparations proposals impos-
sibIe were due to the Fundamental
l. controversy involving, on the one
! side. the raising OF Germany's pro-
| ductive efforts to a maximum in or
| der to enable her to meet her. obli-
! vention of German competition be-
| coming a menace to other nations.
Expect to Use Exports.
| The Paris proposals, continued the
J German spokesman, contemplated the
| payment of annuities Of 5000, ,O0O, ,OOC
| ma rks, gold, and all were agreed tina,
| the only manner in which this
amount could be paid was by a sur.
| plus Of exports. The German experts
| had declared. however, that in order
| to meet these annuities the German
| exports would have to be four times
| as great as the annuities, and the
| forcing up Of the German export
| trade to this figure, he said, would
| constitute a serious menace to the
rest of the world.
| The foreign minister's reference te
the proposed export tax of 12A Del
! cent was that 1t must either be pait
| by the consumer. II the price coulc
| be forced up, or by German industry
| which would thereby be weakened II
its power to compete. The result,
would be that the exports would de.
| cline.
The German government, declared
DR.. Simons. believed the Paris pro.
| posals were based on a too hasty con.
ception of the condition of German
industry. Germany was now able te
export, he pointed out. because of the
favorable exchange rate and the low
cost of production. and these condi
tions probably would not be lasting
They really represented an unhealthy
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