The Paris proposals already represented a considerable. abatement of the Allies' claims, advanced with a view to assuring a settlement. We were willing to discuss with Germany the length of the period of the annuities and also an alternative method to the 12 per cent. tax for adjusting the annuity to Germany's prosperity, but we demanded immediately: firstly, a settlement of the amount of payments or of the factors which should automatically determine those amounts in accordance with Germany's prosperity; secondly, an arrangement as regards the method of payment which would preclude the possibility of further discussions or quarrels.
Submit or Take Consequences.
Mr. Lloyd George asked Dr. von Simons' pardon for expressing the opinion that the latter was not a free agent, but was compelled to answer to a public opinion which was unready to pay the debt. He concluded by insisting on the necessity for an immediate definite settlement. In consequence of the fact that the German proposals were simply an evasive postponement, he said, the Allies had regretfully concluded that the penalties must be enforced immediately.
Text read from the printed page and cleaned; old type leaves the occasional error.