The. next subject for discussion at the Conference was repents.-
tion. On Monday the Conference was not far off s. break-up. The German proposala were vague, the most striking suggestions being that Germany should be allowed to make payment in kind (which should be valued at what may be called an, average universal .rate, and not in accordance with German prices): and that German labour should be employed in restoring the French devastated areas. If the Conference was in troubled waters on Monday it reached a .crisis on Tuesday. There was then an actual deadlock as no agreement could be reached on the coal question. It will be remembered -that the Peace Treaty pro- vides that Germany should supply coal et the rate- of 3,250,000 tons .a month, but .the Reparations Commission reduced this tale. to 2,400,000. The Allies on Monday went further:still and consented to accept 2,000,000. tons .a month. Germany, lictw- ever, insisted that she could provide no more than 1,409,000 tons per month after October and 1,700,000 tons after October, 1921. Even this would depend upon improved feeding and_housing_in _ Germany.
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