But these incidents cannot be said to mark any change
from the position of sullen deadlock which has continued for nearly three months. The real event has been the ievelopment of the positive side of the policy of the German Government. The negative side is 'represented by sustained passive resistance in the occupied area. The positive side is now being disclosed. It consists in gradually laying down constructive proposals of what Germany is willing to do to reach a practicable repara- tions settlement. The first step in this policy was taken by the German Foreign Minister, Dr. Rosenberg, speaking before the Foreign Relations Committee of the Reichstag. In effect what he said was that Germany was prepared to accept the verdict of an American Commission of Bankers as to what she could pay and would float a loan to begin these payments at once. French evacuation of German territory would be carried out by definite stages (like German evacuation in 1870) as the payments were made. , . The importance of this announcement can hardly be overestimated.
