6 JANUARY 1923, Page 10

After making some arrangements in regard to the pay- ments

in kind to France and Italy, which, however, are to be kept as low as possible, the plan goes on to define the conditions to which Germany must agree if she is to be allowed the great reduction in the reparation claims set forth above. In the first place, she must stabilize the mark in accordance with the recommendations made by the foreign experts in November last, and must restore also her budget equilibrium within a prescribed time. It is suggested that six months should be allowed for the stabilization of the mark and two years for the budget reform. Next, Germany must accept such financial supervision as may be deemed by the Powers to be necessary. (That may seem harsh, but in reality it would probably be a very great help to the German Government to be able to say to their grumbling taxpayers that they had no option but to ask for the necessary sacrifices.) Finally Germany must agree, in the event of her failing to satisfy the supervising authority that she is carrying out the first obligation, to allow the application of any measures which the Allied Powers may unanimously decide to be necessary. These include forcible seizure of German. revenues and assets, and military occupation of German territories.