GERMANY AND THE REPARATIONS PROBLEM
I understand that in the neutral capitals in closest touch with the highest circles in Berlin an important public declaration by the German Government on the subject of Reparations is confidently expected in the course of the next few days. It is highly probable that while this declaration will be indicative of the Reich’s readiness to make a concrete offer for a settlement, the implied proposals will not be submitted forthwith, but that such proposals will be ready for submission as soon as the German Government is assured that the Allies would be willing to consider them.
The proposals, which have been already drawn up, involve a material guarantee by the German industrialists, the disclosure of which is conditional upon an assurance that the scheme shall not be brushed aside without serious examination by the Allies, as happened to those produced in London by Dr, Bergmann in December, and more particularly to those brought by him to Paris in January of this year. Unofficial or semi-official envoys from Berlin have recently caused inquiries to be made of members of the British Government, through other than the normal diplomatic channels, as to whether it would not give a lead by suggesting that the submission of a concrete offer by Germany would be welcomed in London. British statesmen, however, proved reluctant to commit themselves even to this extent in regard to Germany, on the apparent ground that such a gesture might be misconstrued by our Allies as one of intervention or mediation. This attitude of reserve on the part of British Ministers caused some disappointment not only to the German Government, but to other Governments
as well, which had been anxiously looking to this country for a lead in a matter of political and economic concern to the entire world.
I gather that the German Government is fully prepared to accept a far-reaching measure of international control over its finances, and to participate in some international guarantee to France relating to the latter’s Treaty frontiers.