Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-01-03
British PROPOSAL

The British plan would provide that
the existing series of Glass A, b and
G bonds be cancelled, Germany to is .
sue to the reparations commission two
series of new bonds. The first series
would amount to 50,000,0OO,0OO gold
marks. Ito be issued forthwith, pay
able at par on December 81, 1854, it
bearing interest at the rate of per
cent. per annum. payable half yearly;
the interest to be suspended in it's en-
tirely for the first four years and to
increase to the extent of l per cent.
per annum for the next four years I'M
til January /, 1881.
1.-THE second series of bonds, to
amount to 17.310,O0O,0 900 gold marks.
are the amount of the preferred inter-
est on the bonds of the first series
compounded at per cent. to April /,
1888, or such lesser amount. if any.
as the arbitral tribunal provided for
may determine"
The plan provides various contin-
gencies. as, for instance, sliding
scale at which the bonds may be re-
deemed. beginning at so on December
IL, 1928, and rising thereafter to 6S
ON December 81, 1926, then increasing
by one-half per cent. semi-annually to
par. Thus Germany would be given
inducement to take up the bonds before
maturity
The proposal would be offered to
Germany upon the condition that she
! stabilize the mark in accordance with
the recommendation contained in the
majority report of the foreign experts
consulted by the German government
IN November last and restore budget
equilibrium within limits of time to be
prescribed (say six months for stabil-
| ization and two years for budget re-
| form)."
Germany would be required to ac-
| cept financial supervision under a "for-
| eign finance council sitting in Berlin,
this body to consist of members ap-
pointed by Great Britain. France. Bel
GUM, Italy, and two other members
! OF American and neutral European ma
tionality, respectively.
The German finance minister would
be chairman of the council without the
right of vote except in the case of q
tie. and would be required by law to
act upon the councils advice in "alI
matters affecting. first, currency leg
islation; second. the budget, fiscal leg
islation and ptblic expenditures; third,
| the general treasury administrations
and, fourth, financial prohibitions and
the control of foreign remittances"
If Germany fails to satisfy the "su-
pervising authority" the Allied pow
ers may unanimously decide upon
such measures as may be necessary, in
| GLIDING forcible seizure of the German
revenues and assets and military oc-
cupation of German territory outside
the existing zone of occupation"
All other proposals for the taking of
| pledges and "the application of sane
! tions otherwise than as provided for
| above" are to be abandoned by the AL
lies upon Germany's acceptance of the
plan.
| An integral part of the program are
| the proposals for dealing with the in
| ter-Allied debts.
''The deposits of gold which are
now held by Great Britain as
security for loans made to France
| and Italy for the purpose of carrying
| on the war are to be applied forth
with to the repayment of these
loans," reads the plan; 1.-THE French
| share of the German bonds appli-
| cable to repayment of the Belgian
war debts to be transferred to Great
Britain and accepted by her as sat
isfaction of an equal amount of the
French debt to Great Britain"
Bonds of the first series to the
value of 1,5OO,OO0,OOO gold marks are
| to be transferred by Italy to Great
Britain and accepted in payment of
an equal amount of the Italian debt
to Great Britain; the balance of the
French and Italian war debts to
Great Britain to be written off, and
all counter claims by France and
Italy to be abandoned. The Italian
| debt to France would also be written
off.
Great Britain and France would
transfer to the reparations commits
sion, acting as trustee, the net war
debts owing them by Serbia, Ru-
mania. Greece and Portugal. 1t is
provided that 'the debtors transfer
their interest in the second series
(contingent) bonds to pool for dis
J tribution to those powers which are
indebted to the United States in
proportion to the respective Ameri-
can debts"