PEACE NEGOTIATIONS.

Otaki Mail, Volume 26, 18 June 1919, Page 4

PEACE NEGOTIATIONS.

COUNTER-PROPOSALS BY GERMANY. London, June 15. The German counter-proposals, agree to the reduction of armaments, and asks for a period for transitions and delay, and that only the iWgue of Nations should supervise disarmament.

The Saar Valley question must be settled exclusively on an economic basis. A plebiscite in Alsace-Lorraine is demanded, and if it favours France the. latter should assume a proportion of. the German debt. Germany declines to yield Danzig, and asks for a special committee to decide on the colonies, which Germany is prepared to administer under the League if she is made an immediate member on an equality with others. She also demands most-favoured-nation'treatment for a term of years, and freedom tariffs for all nations. The reparations annuity for the first decade is not to exceed a billion marks, taxed on revenues, and the total is not to exceed one hundred billion (not one million as cabled earlier) marks. THE ALLIES' REPLY. Paris, June 15. The Allies will publish the German counter-proposals this evening, and the Allies' reply to-morrow. The reply stales that directly the economic restrictions end Germany will enjoy the same advantages as other members' of the League. The Allies' amendments io the Treat v include the following:—

Germany must, submit within four months proposals regarding the amount of reparation, and the methods of payment. ■ A plebiscite will be taken in Upper Hilosh] within eighteen mouths. Germany to be admitted to the liCague of Nations in the near future. Negotiations to be opened immediately wilh the view to a general reduction ill armaments. Kffcctives in the German army to be limited to 200,000 for three years. DEADLOCK OVER THE REPLY. THE AIM OP THE ENEMY. Paris, June 10. Something approaching a deadlock has asrisou over tin* Allies; reply to the Orman counter-proposals. M. Clemeneeau is reported to be (irmly adhering to the terms of the Treaty, for the reason that French public opinion is strongly averse to a change. The Council of Four has considered the reports of the various commissions on the counter-proposals. It is believed the reply will lix .Tunc 10th as the date on which Germany must say whether she will sign or decline to do so. There is good reason to believe that when the Germans receive the ultimatum they will declare they must refer the matter to the National Assembly for decision, and it is expected the latter will reject the Treaty. The Germans- hope this may cause a panic among the Allies, forcing them to enter into verbal negotiations.