, 1923-05-02
PREPARATIONS BOND ISSUE Asked
BY GERMANY |NLATE PROPOSAL

Of oal and coke arc specially I'm
portant.
With regard to. tho two proposed
loans of five billion marks each. the
note proposes that IN case these
amounts cannot DO raiped fully by
issues of bonds at normal rates be-
fore the dates fixed. an impartial In
ternational commission shall decide
whether. when and how the amount
not yet accounted for Ia to be raised.
The same commission would decide
In July. 1928, whether. when and how
after July 1. 1929. the interest not
provided for in the first instance Is
subsequently to be raised.
As to the makeup OF tho commits.
sion. Germany proposes that either
the syndicate which puts up the first
loan of twenty billion gold marks or
a committee of International b. ness
men be chosen according to tho sug-
gestions Of Secretary Hughes-a
committee on which Germany 10 to
pc presented with rights equal to
those Of other nations.
As tho third alternative thu note
proposes q court OF arbitration com.
VI the re-
parations commission and a reprcsen.
tative of the German
together with a chairman whom the
president of the United States would
DO requested to nominate in case the
other two members failed to agree
as to the nomination.
hi motto begins by emphasizing
the view that the question upon
which depends the reconstruction of
the devastated areas and the restora.
ton OF its sound economic life and
peace OF Europe can only be solved
by mutua, understanding.
Tho occupation of the Ruhr, the
note states. is dlametricaIly opposed
TO such aspirations. and 1t therefore
provoked the passive resistance of
the Ruhr population.
"The German government the
note continues. "tho sober. minded
desire of all people that the daily In.
cruising tension % relaxed and the
wanton destruction of economic
values cease. The German govern
ment, therefore has decided to make
another attempt to arrive at an un.
d~erstanding without, however, aban
donins its legal standpoint or de
sisting from the passive resistance.
which is to be continued until the
areas occupied in excess of the stipu-
lations OF the treaty of Versailles
have bee evacuated and the condi.
tons on the Rhine restored accord
Ing to the terms of tho Rhineland
agreement"
The note stresses the difficulty of
N r.-l.r4.,a~ ~ N t---fN- --
putting Germany's economic and H.
mancial capacity IN her present sltua-
ton and It declares every solution
must be sufficiently elastic to take
this condition into consideration.
II should. furthermore. be noted.
says the document, hat Germany,
owing to the lack of surplus profits
from her own products will IN the
near future be unable TO raise any
large amouts of capital from her own
resources, and that consequently she
needs foreign loans which, however,
can only be obtained when Cor
many's credit is restored.
The note contains recurring 'sug-
gestions that American recommends
Ions in respect to the adjustment of
~reparat!ons be adopted.
tteference also is made to the
Bryan agreement for tho Arbitration
Of international conflicts. This is In
connection with the so-called socurl-
ties demand by France.
The outstanding bid for American
participation in the solution of the
~reparations issue is contained IN tho
proposition that the president OF the
United States name the third member
OF h financial commission which
would decide tho manner in which
the sums lacking TO make up the full
mount of Germany's offer after the
first loan be raised.
After setting forth the details of
the proposed three loans by which
tho thirty billion marks would he
raised, the note says that in case the
three loans do not produce the re
Quircd total IAN impartial fptar,,-