The Washington herald., 1922-12-11

nc COIllu4EQs -
These proposals are less than
The Allies are entitled to under
the treaty Of Versailles II
made effective by acceptance
they would mean further revi-
sion Of the treaty Of Versailles.
MATTER FOR EXPERTS.
The conference win meet again
tomorrow. II an agreement In
reached on general principles It
may make the Brussels meeting
unnecessary. If there In Q gem
eral agreement the rest would be
only q matter for the experts.
i proposed to the premiers on
Saturday an elaborate scheme
covering reparations and inter
Allied debts. proposed the tp-
demnity be based on productive
ana economic guarantees, Ny
proposals win again be before
the conference Monday.
The question of inter-Allied
debts owing to the United States
was not raised. It probably VIII
not be raised for the time be-
ing. II is Irrelevant"
GERMAN PROPOSALS.
The German proposals included
the following:
1-Germany will raise an in
ternal loan of no specified sum.
but suggests 5000. .000. 900 gold
marks tnearly $3.50, 0,000, ,000);
2-If permitted to raise such q
sum Germany wants q two-year
moratorium. promising to turn
over half of the proceeds OF the
loan to the Allies. The remainder
would be used for stabilization of
the mark and the exchange rates.
3-For every loco. .000, 600 marks
above 5000. 900 900 Germany sug-
gests an additional year be added
to the indemnity moratorium.
thus hoping to extend the mora
torium into several years dura-
tion.
WANTED LOAN FREE.
Chancellor Cuno. who signed the
proposals, suggested that such con
ditions would attract German capi'
tai that 10 now leaving the coun'
try. He proposed that the loan be
free Of taxation.
The only satisfaction the French
got out CT the German proposals
was that they specified no definite
amount by which reparations would
he redu ed
II the Brussels conference Is held
at all the French and Italians want
II to open next Saturday. The Bel.
gians want 1t postponed until early
in the new year.
MAY INVITE UNITED STATES.
The suggestion has been made
that the United States be invited
to participate in all the negotiations
at Brussels, but particularly those
relating to Allied debts
The results of the premiers' meet
ing here will be communicated 10
the State Department at Washing
ton so that the Americans may
know the details of any general
program that may be drawn up.
Unless the French upset all the
by rejecting all the
Germans proposed, II had been ex-
pected that an attempt would be
made to solve the indemnity issue
along the following lines:
PROBABLE SOLUTION.
l. Germany would obtain an in
demnity moratorium running from
eighteen to twenty-four months.
2. Total German indemnity to
be reduced to approximately S12,-
900 900 900. of which the Germans
already have paid aDout $1,000
OO0, zoo.
;. BY a German internal gold
loan and foreign credits a sum
In excess Of 81 200. .00O. 900 would
be raised with which to stabilize
the German mark; balance the
German budget. relieve distress,
foster commerce and industry and
to apply upon the financial obliga-
tions owed by Germany to other
countries. chiefly France.
Great Britain would reduce
and in some instances virtually
cancel debts owing to her by Eu-
pean Allied powers
GUARANTEES ASKED.
5. New guarantees would be
provided to compel German pay
ments, but France would promise
not to undertake any independent
military action against Germany.
6. The Germans would demand
written pledges that all the Ger
man territory now occupied or oc-
cupied in the future by Allied
troops shall be returned to abso-
lutte German sovereignty as soon
as the German government gives
sufficient evidence that all debts
will be met in full. Assurances
on this issue were to be given by
the Allies.
Before the premiers met today
for their third session. although
there were still wide Emergencies in
views, the program had been so sat
isfactOry that belief prevailed that
the meeting would end tomorrow.
CAME FROM CUNO.
Premier Poincare first replied to
the proposals made on Saturday by
Premier Bonar Law, Of England.
and the latter in an address to his
outlined suggestions that
had been brought to London by
DR.. Bergmann.
The German embassy claimed
that DR.. Bergmann was in London
on personal business, but subse-
auently it was revealed that he
had brought proposals from
Chancellor Wilhelm Cuno. setting
forth the economic policy of the
new German government.
The chief conflict in views among
the premiers up to this afternoon
had been over German guarantees
and the question Of debt reduc-
ton.