_Analysis of the German Project._ If we compare the English and Italian projects with the German, the inacceptability of the latter appears evident. As is known, one of the fundamental points of the last German project concerns the consolidation of the actual debt of Germany, especially in kind, at the figure of twenty milliard gold marks, with an additional ten milliards, the payment of which depends upon the decision of an International Commission. Deducting the interest, these twenty milliards are reduced to fifteen, and the sums necessary must be found by international loans; and in the very probable eventuality that by 1927 the twenty milliards have not been subscribed, an annuity will be paid which represents five per cent. interest plus one per cent. for the redemption of the loan. Finally, in the German project any provision or regulation for the guarantees demanded is lacking. The total German debt, which in the English and the Italian projects is fixed at the figure of fifty milliards, in the German project is reduced to less than a third, and it is difficult, if not impossible, to determine in it the Italian quota and the sacrifice demanded from Italy. In view of the representations, especially of England and Italy, Germany has recognised her proposals as insufficient, and yesterday the German Ambassador, Neurath, presented to me the new German Note, on the contents and nature of which I cannot pronounce an opinion for evident reasons, as in consequence of this Note diplomatic action with all the Allies must be taken up. I will only say that the German Note no longer demands the preliminary evacuation of the Ruhr as a condition for negotiation. This might make us believe in a renunciation on the part of Germany of that passive resistance, the utility of which—even for German aims—appears ever more doubtful, and whose cessation would help towards a more rapid attainment of a solution. _Italy and Hungary._ But the problem of reparations is not only Franco-German, it is also Hungarian, Bulgarian and Austrian. It is useful to define the stage which has been reached with regard to these ex-enemy countries. The total of the Hungarian reparations, which is fixed by the Treaty of Trianon, has not yet been determined by the Reparations Commission, and Hungary up to to-day has only furnished limited supplies in kind. The Hungarian Government, alleging the disturbed economic and financial conditions of the country caused by the serious depression of the krone, has recently put forward the necessity to contract a foreign loan, which, if it is to succeed, should be guaranteed by the custom duties, by the tobacco monopoly, and, if needs be, by other resources. Hence arises the necessity for such resources to be freed for an adequate period from the claims of reparations. A Memorandum precisely to this effect has been recently presented by the Hungarian Minister in Paris to the Reparations Commission.