The New York herald., 1922-04-11
ARAT|ONS issue
NEARING A CRISIS
Berlin Says No to Allies De-
mand to Control Her
Finances.
NO 60 BILLION TAX NOW
Final Default May Involve
Stern Measures Under the
Versailles Treaty.
NO 60 BILLION TAX NOW

PARIS, April 10 tAssociated Press) -
What is viewed in official circles as a
grave crisis in the relations between
France and Germany was reached to-
day just as TIE Genoa conference was
assembling, with the possibility of the
military occupation of further Ger
man territory presenting itself This
came as result of a negative reply
from the Berlin Government to the
note of the Preparations Commission
on the German reparations mora
torium In which certain fiscal reforms
were demanded of Germany.
IA dispatch from Berlin says the Ger
man reply to the Allied Reparatons
Commission says Germany cannot con-
sent to the guarantees demanded by the
commission where they exceed the offer
made In the German note of January %,
or consent to proposed allied control Of
its revenues and expenditures The note
requests the commission to revise it's de-
c,sjon of March 21 involving the demand
tfat Germany increase her taxation by
60.000. 100000 paper marks.l
Mine Explosion Kills Score.
The explosion of a hidden mine at
killing Of more than score of French
soldiers. Is considered as likely to
complicate tie situation. provoking as
1t will energetic diplomatic action on
the part Of France at Berlin.
High French officials now express
their conviction that the present Ger
man Government will be unable to curb
the reactionary agitation and that the
time Is near when the Allies will lie
ol liged either to renounce the execution
OF the treaty OF Versailles or bring
strong pressure to bear on Germany.
The Reparations Commission ma !
now adopt one OF three different methods
in meeting the situation. II may insist
upon its conditions. In another COM
munication to the German Government.
It may announce to Berlin that .hc
conditions having been refused the
moratorium Is Cancelled and demand
payments under the allied schedule or 1t
may refer the German refusal to The
Allied Governments as a final default
in the execution of the treaty of Ver-
sailles.
steps to Enforcement.
In case a fnal default Is reported TO
the Governments each ally may under
the treaty of Versailles take separately
such measures to protect It's Interests
as 1t deems proper, 1t is held by high
French authorities. This would permi,
military occupation of the Ruhr VAL
Icy or other additional German terri
tory BY one OF the Allies. France fvr
instance. without an accord with the
other Allies.
The French Governments attitude in
the past year has been against further
occupations. but the present admins
tration Is known to be much concerned
over the situation ana the feeling is
growing also tnat the reactionary ele-
ment In Germany Is stronger than the
Government and that no Improvement in
the situation Is to be hoped for.
The German note OF January 2S,
which was In response to the Repara-
tions Commissions demand for explain
ations OF Germanys alleged inability to
meet her obligations for January and
February, requested that Germany be
relieved of all cash payments in 1922.
1t also asked for a general reduction In
cash payments and an increase in pay
rnents In kind.
The refusal BY Germany OF the allied
conditions attached to partial mora
torium on reparations was forecast In a
speech bS Chancellor Wirth in the
Reichstag March %. The Reichstag
shortly afterward passed a resolution
declaring the demands of the commits
sion were intolerable and indorsing the
Chancellor's statement with regard to
them.