The Supreme Council of the Allies met at Downing Street
last Saturday to determine what steps should be taken in view of Germany's failure to fulfil her Treaty obligations, in regard to disarmament, the punishment of war criminals, and repara- tion. M. Briand said on Sunday that he insisted on the accept- ance of the demand for a total sum of £6,600,000,000 made by the Reparation Commission last week, apart from the balance of £600,000,000 which Germany had to pay by May 1st. At Paris in February the Allies offered to accept £5,000,000,000, but Germany refused to offer more thin a third of that sum. It is stated that the Council on Tuesday agreed to present an ultimatum, expiring on May 12th. Germany must agree to pay £100,000,000 a year, together with a tax of 25 per cent. on German exports, and gradually to issue bonds for the full amount redeemable within thirty-seven years. If she refuses, the Allies, it is said, intend to occupy the Ruhr Valley and per- haps also the custom-houses at Hamburg, Liibeck, and Stettin. President Harding on Tuesday informed the German Govern- ment that their last offer was obviously unacceptable. He urged them, at once, to make " clear, definite, andndequato proposals" to the Allies for meeting Germany's " just obli- gations." The President's rejection of their offer caused the German Ministry to resign on Wednesday night.
