20O

A REVISION OF THE TREATY

(b) These duties to continue to be levied in accord-ance with the German tariff.

(c) A line of Customs houses to be temporarilyestablished on the Rhine and at the boundary of thetetes des fonts occupied by the Allied troops ; the tariffto be levied on this line, both on the entry and exportof goods, to be determined by the Allied High Com-mission of the Rhine territory in conformity with theinstructions of the Allied Governments."

V. The German Counter-proposal, as transmitted to theUnited States Government, April 24, 1921

The United States Government have, by their Note of April22, opened the possibility, in a way which is thankfully acknow-ledged, of solving the reparations problem once more by negotia-tions ere a solution is effected by coercive measures. TheGerman Government appreciates this step in its full importance.They have in the following proposals endeavoured to offer thatwhich according to their convictions represents the utmost limitwhich Germany 's economic resources can bear, even with themost favourable developments :

1. Germany expresses her readiness to acknowledge forreparation purposes a total liability of 50 milliard gold marks(present value). Germany is also prepared to pay the equivalentof this sum in annuities, adapted to her economic capacity upto an aggregate of 200 milliard gold marks. Germany proposesto mobilise her liability in the following way :

2. Germany to raise at once an international loan, of whichamount, rate of interest, and amortisation quota are to be agreedon. Germany will participate in this loan, and its terms, inorder to secure the greatest possible success, will contain specialconcessions, and generally be made as favourable as possible.Proceeds of this loan to be placed at the disposal of the Allies.

3. On the amount of her liability not covered by the inter-national loan Germany is prepared to pay interest and amortisa-