Evening star., 1923-05-02
OFFERING "LIMlT,"
BERLIN PUTS HOPE
IN PLAN OF HUGHES

Continued from First Page.)
ton with the regulation of the repa-
rations problem, to bring about
nethodic and permanent stabilization.
in order to remove the apprehensions
of other countries with respect to
ruinous German competition. Strength
Snfng of her currency VIII also en-
able Germany to restore her internal
finances. the note says.
In order to realize this program and
also to safeguard the interests Of
those who finance the loans, the Ger
man government says 1t is essential
that there be no more forcible seiz-
ureS of securities: that no further
sanctions he imposed: that Germany
be freed from the unproductive eX-
penSeS with which she now is bur-
dened. and that che also be liberated
forthwith from all political and eco
nomic restrictions.
Provides for FaiIure.
The proposals also suggest that in
behalf of the economic rehabilitation
Of Europe the countries concerned
rive at an understanding with regard
TO dealings in important commodities.
The note expresses the opinion that in
this connection lons-term private con-
tracts for deliveries OF coal and coke
are especially important.
With regard to two proposed loans
Of 5,0Oh.000.000 marks each, the note
proposes that in case these amounts
cannot be raised fully by issues OF
bonds at normal rates before the dates
fixed. an impartial interuationa COM
mission shall decide whether. when
and how the amount not yet accounted
for is to be raised.
The same commission would decide
In July. 1881. whether, when and how
after July I, 1929. the interest not pro-
vlded for in the first instance is sub
Sequently to be raised.
Fnvors Hughes Plan.
AS TO the makeup Of this commits
sion. Germany proposes that either the
syndicate which puts up the first loan
of 10000, 100000 gold marks or q COM
mittee OF international business men
be chosen. according to the suggestions
OF Secretary of State Hughes-a COM
mittee on which Germany is to be rep
resented with rights equal to those of
other nations.
AS the third alternative. the note
proposes court of arbitration com
posed of representative of the
reparationS commission and rep
ment, together with Il chairman
whom the President of the United
States would he requested to nomi-
nate in case the other two members
IalIed 10 agree as to the nomination
The note empha sizes the view that the
questions upon which depend the re-
construction of the devastated areas
ana the restoration of the sound eco
nomic life and peace of Europe can
only be solved by mutual under
standing.
Ruhr Occupation Hampers.
The occupation of the Ruhr. the
official declaration states. is dia-
netrically opposed to such aspirations
and it therefore provoked the passive
resistance of the Euhr population.
The German government" the note
continues, shares the sober minded
desire OF all people that the daily
increasing tension be relaxed and the
Nanton obstruction of economic val
ucs cease. The German government
therefore has decided to make an
other attempt to arrive at an under
standing without. however. abandon
ing It's legal standpoint or desistiup
from the passive resistance, which is
To be continued until the areas oc
cupicd in excess of the stipuIat tions
OF the treaty of Versailles have been
evacuated and the conditions on rho
khlhe restored, according to the
terms of the Rhneland agreement"
Inc note stresses the difficulty Of
arriving At a tangible basis for com
pttlnS Gernlany'S economic and finan-
''ai capacity in her present situation,
ana II declares every solution must
De sufficiently elastic to take this
condition into consideration.
Foreign Loans Vital.
IL should furthermore be noted,
says the document. that Germany,
owing to the lack of surplus profits
from her own products will in the
near future be unable to raise any
large amounts of capital from her
own resources. and that consequent
" she needs foreign loans. which
however, can only be obtained when
German credit is restored
The note contains recurring sug-
sessions that American recommends
tons in respect to the adjustment Of
reparations he adopted.
The outstanding bid for American
participa ton in the solution of the
reparationS issue is contained in the
proposition that the President of the
! nited States name the third member
OF the financial commission which
would decide the manner in which the
sums lacking to make up the full