VON SIMONS AT THE CONFERENCE

Evening Post, Volume CI, Issue 52, 2 March 1921, Page 7

YON SIMONS AT THE CONFERENCE

thb Exports question

*A MENACE TO THE BEST OF THE r. WORLD. (iHirnv prhss association.— capiaiosTO (AWTBAUAX • N'BW lEAI/AND CAOL3 AHOCIATIONO (Received March 2, 10 a.m.) LONDON, Ist March. At the London Conference Mr. Lloyd George pressed and invited Dr. yon Simone to speak. The latter said he was ■unable to acoept the Paris proposals in their present form. This was due to the fundamental difficulty of raising industry ■effectively to ita maximum in order to . pay the amount, while on the other •hand preventing German competition being a danger to other nations. The German Government, taking the Paris proposals as a starting point, had arrived jit very different conclusions. The Paris | proposals proposed annuities of six mil- | iiards. This must be paid by surplus exports, and experts agreed that, in order . to pay the annuities, German exports would require to be four times greater than the annuities. This ratio was chiefly due to the necessity for importing raw material and food. Germany's burden would be increased through deprivation of territory from which previously she derived these commodities. Forcing the exports up fourfold would constitute a menace to the rest of the world. Referring to the export duty, Dr. yon Simons said that this must be either paid by the consumers, if they would accept such a price, or paid by German indus•try, which would 'thereby be weakened in' power to compete, resulting in a decline of exports. His Government considered the Paris proposals based on a too transient conception of German indiutry. Germany was now able to export owing tq a favourable exchange and lower cost of production. These conditions, however, were probably not lasting. Dr. yon Simons remarked that the present conditions really represented the state of sickness of German industry caused by the condition of the currency. It was 'difficult for Germany to make definite -proposals, but the German people were wiling to make great sacrifices, and were prenared to submit something definite in place of the indefinite propositions. The German Government thought ihe payments should not be too heavy or extended for too long a jperiod. The German people feared to see their children and grandchildren overburdened. | The Government thought it beat to fix the total capital gum payable; they thus would pay interest and sinking fund in the usual way. If the Paris proposals were discounted at 8 per cent., on the present value they would be fifty milliard gold marks. There was dispute between the German and Allied experts over the amount already paid in reparation. The Germans estimated that twenty milliards had been paid, thus reducing the amount to thirty milliards. This according to her experts, was the utmost permany could pay. They would agree to a joint commission to value the reparations already paid. He suggestod that in order to make the German obligations immediately effective, they' should issue an international loan as soon as possible, for which Germany would find the interest and sinking fund.

Mr. Lloyd George intimated that the Allies could not discuss»any alternative to the Paris decisions.