The Washington herald., 1921-04-27
German Offer May Prove
Basis for New Confer
ence, Says Report.
CABINET WEIGHS
TERMS SERIOUSLY
Reparation Sum Is In
creased, But Still Be
low French Demand.
BY ROBERT ,. BENDER

BY ROBERT J. BENDER
Negotiations between Secretary Of
STATE Hughes and representatives Of
the allied powers are under way 20
determine whether the latest Ger
man reparations note constitutes a
basis for the new deal suggested by
this government on the problem
There was a semi-oficisI disposi-
tion TO regard the note-from the
; administration standpoint-as con-
stitUting such a basis II. after the
negotiations with the allies are con-
! cluded. such a view Ia maintained.
the machinery of procedure prob
sbly would include formal dispatch
OF the proposal 70 the allies with
the suggestion that another reps-
rations commission conference. IN
which the United States probably
would be represented, could iron out
Objectionable features
Note Il wIthkeId.
The greatest secrecy thus far has
been thrown around the proceedings
now going on. and. pending a deci-
sion, the full text Of the German
proposal is being withheld from pub
lication by the State Department.
lest its release be miseonstrued in
some quarters as a gesture friendly
TO the Germans.
The note. which arrived in sec
tions. was ready for discussion at
yesterdays Cabinet meeting and is
said to have DEVELOPED expression
Of some rather marked differences
4 gWaNW
long session. Developments after
the Cabinet meeting. however. in
dicsted that the terms Of the Ger
man proposals had been generally
regarded as afTording subject mat
ter for careful consideration be-
tween the United States and the
sulez before final DECISION was
reached az 70 its disposition
Begin Cenferesees.
Secretary Hughes during the
afternoon began a series OF con-
f.rences with the japanese, italian
Relgian. French and British Ambss-
Sadnrs. the latter. for some uneN-
plained reason. being the last
called in.
These conferences. il seems. were
devoted to a reading and discus
sion Of the terms ~ the note. with
the object Of exchanging views as
TO whether Il closed the door On
continuance of negotiations or lett
q loophole through which the allies
might proceed in an EFFORT 20 solve
the problem without increasing
their program Of coercion.
Change, Suggested.
The impression prevailed that,
while some Of the German pro-
posals could not be considered and
some. as they stood, were entirely
unsatistactory to individual powers.
particularly France. there appeared
. willingness. even an expectation
on the part of the Germans. 60
make suggested alterations For
this reason there was distinct
feeling in responsible quarters late
Yesterday that the door would not
be closed on the negotiations.
Here vas the situation after hrst
! consideration Of the German pro-
possls:
Exceeds Estinste.
1. Germany agrees to ray So
! 600. .ooo. 900 marks in gold Sle.ono--
$50. 900 .ooeD for reparations. which.
IL carried over a period Of some
! forty years as suggested. would
amount with interst TO about 200
I ooo. 900 900 marks while this total
( is q, 900. .OoO. 900 marks less than the
present allied demand. IL is some
I what greater than some leading
American economic experts figured
Germany could pay when the sub
ject was up at the peace conference.
2. Germany's proposal TO have an
international loan hoated. upon
which she would pay per cent In
terest, the proceeds to be applied -
! payments on reoarations. was held
10 be impossible. In the nrst place.
it was pointed out, the United States
would have TO carry the bulk Of the
loan load and per cent is only
J about one-half of the interest rates
in this country. assuming there
might be a market for the bonds.
Reject RebuiIdinE.
;. Germanys suggestion that she
turn over men. material. etc. TO re-
build the devastated regions Of
France as partial payment on her
debt. already has been nstly sco-ned
4 by the French as designed to open
up German industry, supply German
labor withvork at small pay and
thereby shut on similar Industries IN
France and render idle great num-
bers of French labor.
4. The proposal that Germany pay
1.0oo.ooo.ooO marks Immediately.
$50. 900 being in gold marks snd
the other SSO.oOO.OoO to be in ,he
form of treasury notes to be paid 81
not later than three months hence.
was held by allied representatives
here as palpsbly an effort to fur
ther postpone payment on their de-
mand that 1000. 100000 gold marks
be paid. under threat OF penalty. N
or before next Saturday.
| While this government has not
4 forwarded the note TO the allied pre-
miers, IL lie said the latter are fully
coEnizant OF all its proposals. This
fact should make for expedition IN
reaching a conclusion as to what