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At the close of Dr. Simons's speech, Mr. Lloyd George

said that the German Government completely misunderstood the realities of the position. The Allies, he said, had already agreed that Dr. Simons's proposal was one which they could not examine or discuss as an alternative to the Paris proposals. The German delegates professed to be disconcerted by a reply which they might have expected, and the Conference adjourned, The Allied Ministers on Wednesday consulted their financial and military advisers, including Marshal Foch, as to the formal answer which they intended to give to the German delegates on Thursday.

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