The New York herald., 1921-12-17

held here to justify the setting up Of
a separate autonomous state. .ou. the
left bank Of the Rhine. which the
Allies might exploit for the benefit OF
reparations.
This. * IL nointed out, probably would
be decided upon only as a last resort
the officials declaring that France de-
sired particularly TO avoid any action
that might be used as a basis of COM
laints of Imperialism, and that for this
reason the Ruhr occupati tion was not
considered among the measures In view
IL is pointed out further IN official
circles that had the Wiesbaden agree
nent been upheld by the Preparations
Commission, az least half the sum due
from Germany on January Is would
have oeen paid in kind. enabling her to
meet the instalment fully.
Not an Ultimatum.
Although the note OF the Repara tions
Commission will not be published until
noon tomorrow the Associated Press
was informed Tonight from a most re-
liable source that Il is brief and in no
sense could be construed as an ulti-
matum TO the German Government In
some quarters IL was said the note
deeply criticised Germany for having
failed TO take adequate measures to
balance the budget and bring about
financial reforms which might have
made possible strict observance of the
London agreement, so far as the next
year is concerned. This, however. could
not be confirmed
II was learned tonight that when Nj
BRAND and Mr.. Lloyd George meet they
,s,.,. -. - &l.
facts which the commission has gathered
in relation to the actual situation in
Germany. together with the only method
now open TO Germany for the next two
or three years for meeting her indemnity
obligations.
suggestion has been made that the
commission take the money Germany
has accumulated for reparations payment
and allot II to France. The commission
believes this amount to be nearly 200.-
600, 600 gold marks.
There apparently is no official inten-
tion 70 declare Germany in default OF
her Obligations in advance of the
Briand-Lloyd George conference, the ex-
perts declaring that the effect of such
action would only make matters worse.
Plan Not Vet Formed.
No definite plan has yet been devised
by the Allies for solution of the in
demnity tangle. but information OBJ
tained in authoritative quarters indi-
Gates that the suggestion receiving the
most consideration for the moment Is
one involving the giving up by Great
Britain, in whole or In part, OF her
share of the indemnity. the cancellation
by Great Britain of Frances debt
through the issuance of German in
demnity bonds, Series c, and exclusion
from the total of indemnity Of items
for French and British PENSIONS these
being assumed by the respective gov
ernrnents.
Also it is suggested that the Weis-
baden agreement be ratified and new
division made of the first billion marks
of the indemnity paid by Germany in
August, and relief be given Germany
for from two TO four years so far as
cash payments are concerned.
In return for these concessions the
Allies would exercise strict supervision
over German finances through q COM
mission in Berlin and Germany would
agree in writing TO balance her budget
end normalize exchange and effect other
financial reforms which would place
her in position to pay q reasonable
indemnity at the conclusion OF the
''reparation holiday" s
DaT 1e lAconnjotnJ l1.saunl