Evening star., 1923-02-03
CapituIation Seen in Protest
to, Reparations Commission
on Moratorium Refusal.
NOTE FIRST ATTEMPT
TO RESUME EXCHANGES
Ex-chancellor Wirth Reported
Chosen to Negotiate-Stinnes
Mission Linked With Proposal.
By the Associated Press.

By the Associated Press.
BERLIN, February 3.-A SEMI
ofhctnl cOmmuniQue ISSUED today,
after referring to rumOrs that
Germany is preparing to yield to
the French pressure I'm the Ruhr,
declares that the governments
resistance, ON the contrary, In in
creaSing and will continue until
the futflity of the Franco-BeIgian
action In as clear to its authors
as its fIlegality. which is recox-
mixed on all sides"
By the Associated Press.
PARIS. February 3.-The German
governments note to the reparation
commission protesting against the re-
cent refusal of moratorium is regard
ed by a part Of the French press as
forerunner of German capitulation and
as direct result OF French action in
the Ruhr.
Publication of the note today causes
commentators to remark that it repre-
sents Germany's first attempt toward
resumption of exchanges with the al
lies.
- AS shown in its note of January
Is, the communication says, the Ger
man government suspended payments
in kind to France and Belgium solely
because of the invasion-which was
contrary TO the treaty-of the Ruhr
by these two powers and solely for the
duration of this state of affairs and tits
consequences.
Exercised It's Right.
In thus acting. the German gov
ernment exercised its unquestionable
right. There cannot be a question OF
default in the sense of paragraph IT,
annex 2, part s, of the treaty Of Yer
sailles. Consequently the German gov
ernment protests against such a de-
fault being recorded"
The note then contests the conclu-
sion that the German request for a
moratorium had become null and void
IL cites the reparation commissions
decision of March 81, 1922, recognizing
that the financial situation Of Germany
fic payments for 1922 laid down by the
schedule of May 5, 1921. 1t cites alro
the commissions decision of August 81 ,
lS22, expressly recognizing the fact
that Germany had lost all her credit,
internal and external, in which the
commission considered the question Of
reducing the external charges to be
imposed on Germany
Incapacfty Recognized.
Furthermore" continues the note,
each of the principal allied powers,
in plans submitted to the Paris con-
ference Of January 2. recognized the
present incapacity of Germany re-
garding payment in kind and consid-
cred the question of the immediate
grant of a moratorium of several
years in addition to a reduction OF the
total obligations under the schedule
of payments of bay 5, 1921.
Meanwhile the financial and eco
nomic situation in Germany has
grown still worse, owing to tho oc-
cupation Of the Ruhr. The mark has
fallen to one-thousandths of its pre-
war value"
In Conflict With Attitude.
The note declares Germany consid-
ers that the reparation commission in
returning to the schedule of payments
adopted in London in 1921 is in con-
flict with the former attitude of both
the commission and the principal al
lied powers. The action of the COM
mission, Germany contends, contra
venes the provisions of the Versailles
treaty, which document makes Ger
many's obligations depend upon her
capacity for payment and sets forth