The Hope pioneer., 1921-05-26
Crisis Reached in Reparations
Matter, With the Germans
Still Evasive.
SIM0AS MAKES new Offer
Total War Damage Bill Formally Pre-.
sented by the AIlies-knox Peace
Resolution on Way to Passage
Naval Holiday Move Checked.
BY EDWARD W. PlckARD.

1t would be foolish to attempt to
predict what will be happening in and
to Germany in connection with the
reparations dispute by the time this
reaches the reader. 1t all depends on
developments during the weekend, so
the most that can be done is to tell
what has taken place up to the time
Of writing.
Early in the week the German gov
ernment, really alarmed by the prepa-
rations Of the allies to enforce penal
ties, transmitted to Washington re-
vised offer which it was hoped would
be submitted to the allied govern
ments as basis for further negotia-
tions. In this Doctor Simons proposed
Germany should engage to pay approxi-
mately $12,500,O00,000 principal which
with interest would total about $780,
OOOOOO,OOO. The allies have fixed the
principal at $21 1,O00OOO,OOO and the to-
tai with interest at $56, 6,00O,OOO,OOO. The
suggested methods of carrying out the
engagement are too complicated for
discussion here, and indeed the allies
found them so vague that further ex-
PLANTATION was demanded. What France,
at least, considered "joker'' in the
offer appeared in the conditions ap-
pended, reading:
Germany only considers these pro-
posals as capable Of acceptance if the
regime Of sanctions stops Immediately;
If the actual basis Of German produc-
tion is not further restricted and If
Germany is admitted to world traffic
and is relieved from unproductive ex-
penses."
This Of course meant there should be
no further occupation of German terri
tory and. presumably, that Germany
should be left in possession Of all of
upper Silesia.
Berlin also suggested that "in case
the United States and the allies should
wish it, Germany will be disposed to
take over to the limit of her capacity
payment Of allied obligations to the
United States with regard to their
debts TO the latter" This plan has
been broached before but met with lit
tie favor either in the allied countries
or in the United States.
Secretary Hughes conferred with the
ambassadors Of the allied governments
concerning the new propositions. and
they were discussed in the capitals of
Europe; and up to date the belief was
general that they were not good enough
to warrant the American government
In formally presenting them to the al
lies. At the same time it was felt that
the offer was worth further considera-
tion, especially in view of a persistent
report that Doctor Simons had assured
Secretary Hughes of his willingness for
reasonable amelioration Of his pro.
posals. Many of the diplomats in Paris
were said to believe a conference, with
the United States participating, at
which Germany would be permitted to
discuss, instead of merely being die
tated to, would result in important
progress being made toward solution
of the reparations question. Lloyd
George told the house Of commons the
new offer was thoroughly unsatisfac-
tory.
The allied reparations commission.
which by the treaty of Versailles was
bound to fix before May the sum Ger
many must pay, concluded it's labors
on Wednesday. The head of the Ger
man commission was summoned and
the bin formally presented to him. The
total sum demanded is principal OF
1872 coo, 100000 gold marks, normally
34,O00, 100000, which with interest
over AZ years amounts to 226,OOO,OOO,.