The Birmingham age-herald., 1923-09-21
EDITH FRANCE AND. BELGIUM SAID TO
 DIST FAVOR OFFE R.
Open, Frank Cancellation Of Passive Resistance Said
 To Be Only Solution
BY FERDINAND JAIN.

BY FERDINAND JAIN.
 (Leased Wire to The Age-Herald)
 BERLIN, Sept. 20.-Both France and Belgium apparently have given Chancellor Stresemann to understand that peace negotiations are impos- sibIe on the basis of full return of expelled Germans to the occupied zone and the release of Germans ar rested there. But according to sources usually reliable, the allies are still considering the proposals which Germany submitted to the Belgian minister.
 These proposals, exclusively an nounced by this leased wire Wednes- day, became generally known here Thursday. They include: CD aban- donment of passive resistance on the condition that expelled Germans be allowed to return and imprison ed Germans be freed, CD the discussion of an indemnity figure of more than 30 billion marks, and (S) broad guar antees for separations payment.
 Belgium and France, however, still insist on complete surrender of pas sive resistance as the preliminary to any negotiations.
 In an exclusive interview granted this leased wire, Count de la Faille, Belgian minister, made 1t evident that the allies are not willing to ac- cept the conditions Germany attach
  as some of the imprisoned Germans are charged with murders.
 o o O
 Realizes His Position.
 The minister explained that he real ized Stresemann was going farther than Cuno ever did to reach an agreement, and that he appreciated the difficulties which confront the chancellor. but emphasized that an open, frank cancellation of passive ( N.1 requisite to negotiations.
 The Belgian minister, however, hinted that Belgium and France might not insist on formal "capit- ulation"- term the German gov ernment does not desire to use for internal reasons.
 He further indicated that a distinc- tion might possibly be made between Germans expelled from the occupied area for political offenses and those expelled or arrestd for criminal of lenses. He did not expect, however, that there would be speedy settle ment of the Ruhr situation.
 Behind the scenes, events have moved rapidly since the offer was made, but the general public Is not yet fully informed of the situation as many of the important phases have not become known to the German press.
 The government is eagerly await ing the next move, which is up to France and Belgium, and still hope that the end of passive resistance may be announced when the reichstag opens next Wednesday.
 Faer Negative Reaction.
 A negative reaction is feared The strange mixture of divergent poli- tical elements that is the Germany of today is full of danger. Capitu- Iation-for such is the German of fer despite government attempts to gloss it over by the term 'regula- tion," has been caused by the further increasing internal unrest, following the mark crash which was accelerat- ed by the use of vast funds by pas sive resistance.
 Communist disorders are growing. 1ected red" coup abound. Simul- taneously the project of surrendering resistance is objectionable to the reactionary elements. The father landish organizations continued dis cussion of a dictatorship Thursday, leaders emphasizing that a military man shoud be head of the govern ment The strong monarchist ele- ments in Bavaria make Munish an other danger spot, and it is feared that they may attempt coup in volving seperation from Berlin when the collapse of passive resistance is openly announced.
 The Baden situation, momentarily quiet. continues to cause anxiety. Berlin police arrested 70 members of the Bismajk kbund, a reactionary or ganization, Thursday.