The German offer which was published just after we had
gone to press last week was in accordance with the forecasts. Germany expresses her belief that she has rightly estimated her capacity to pay, but repeats the promise to accept the decision of an impartial interna- tional body. In place of the loans previously proposed she suggests a scheme of annuities. The guarantees offered are t—(1) The German railways, which would be adminis- tered separately and which, it is stated, would produce an annual payment of £25,000,000. (2) A first mortgage on the entire industry of the country, which is estimated to produce £25,000,000 a year. (3) The Customs duties on certain imports. The Memorandum ends by suggest- ing that there should be a Conference, " since real progress cannot be made by the exchange of written documents."
