London, March 6.
Germany continues to maintain a show of defiance toward the Allied reparation proposals, Reuter's Berlin correspondent states that the Reichstag met at its own desire yesterday to hear the German Chancellor's report on the situation as regards the negotiations at London. Herr Fehrenbach, in a guarded statement, reiterated his previous assertion that Dr. yon Simons had been instructed not to sign an engagement which it would be impossible to fulfill.
No New Proposals, Interviewed by the "Sunday Times," the German Foreign Minister, Dr. von Simons has outlined the reply he will make to the Allies to-morrow.
While insisting that Germany is prepared to pay as much as she can, he will state that she objects to the proposed term of 42 years and regards the figures fixed by the Paris agreement as unacceptable. If the Allies are immovable, he asserted, Germany will submit to execution of the sanctions.
Dr. von Simons, while hoping that a compromise might be reached, made it clear that he would not make any new financial proposal.
expected that the Allies will reject the German plea.
The political correspondent of the "Sunday Times," in referring, to the difficulty experienced by ttle Allies in discovering a method of collecting the German war indemnity without injury to themselves, says he understands that Mr. Lloyd George will offer a suggestion to-morrow whereunder the 50 per cent. payment in respect of German exports to the Allied countries would be impounded by the Allied exchequers and pooled for the common benefit of the Allies. The German Government, by means of increased taxation, would reimburse the German exporters thus mulcted.
It is pointed out that the sums with which they were thus reim-pursed would remain in Germany.—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.