20 DECEMBER 1919, Page 2

Germany replied this week to the Allied Note requiring her

to give compensation for the ships of war scuttled at Scapa Flow. While maintaining her obviously mendacious contention that Admiral von Reuter did not act under orders from Berlin, Germany agreed to make reparation. She professed herself unable, however, to surrender the floating docks, tugs, and dredgers for which the Allies asked. It is said that the Germans offer to give about half the amount at once, and to construct new floating docks for the Allies. The German Government doubtless hope by their interminable delays to secure conces- sions from the wearied Allies, but we should imagine that Germany needs peace even more than the Allies do.