Hello,
My provider has complained about the same problem too. My sysctl entry is below.
> sysctl -a | grep proxy_arp
net.ipv4.conf.all.proxy_arp = 0
net.ipv4.conf.all.proxy_arp_pvlan = 0
net.ipv4.conf.default.proxy_arp = 0
net.ipv4.conf.default.proxy_arp_pvlan = 0
net.ipv4.conf.lo.proxy_arp = 0
net.ipv4.conf.lo.proxy_arp_pvlan = 0
net.ipv4.conf.eth0.proxy_arp = 1
net.ipv4.conf.eth0.proxy_arp_pvlan = 0
net.ipv4.conf.venet0.proxy_arp = 1
net.ipv4.conf.venet0.proxy_arp_pvlan = 0
net.ipv4.conf.veth104/0.proxy_arp = 1
net.ipv4.conf.veth104/0.proxy_arp_pvlan = 0
In my case I need the proxy_arp setting to allow the containers access the internet. As shown in the config, I use veth for the containers with a private IP range. Any pointers?