The German Government on Tuesday sent their new offer of
reparation to President Harding. Germany would admit a total liability of £2,600,000,000, payable in annuities amounting in all to £10,000,000,000. Payment would be made mainly through an international loan. Germany would pay the balance " according to her capacity," working out part of it by recon- structing the ruined towns of Northern France. She would pay within three months £50,000,000 In cash and securities. She would take over the Allied debts to America " to the extent of her capacity," should America wish it. This offer, however, was subject to the condition that all other German obligations for reparation would be cancelled and that all German private property abroad would be released, contrary to the Treaty. Further, " the proposals are only possible if the system of sanctions ceases "—in other words, the Allies are not to enforce their rightful claims—" if the present basis of production is not decreased," which means that Germany wants to keep the Polish districts of Upper Silesia, and, further, " if German trade is set free and released from unproductive demands "- by the abandonment of the new tax on German exports. The proposal is, in fact, so vaguely worded and so carefully limited that it might mean anything or nothing. The Washington correspondent of the Times reported on Wednesday that President Harding would decline to transmit to the Allies an offer which was so obviously unacceptable.
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