REPARATION.

Press, Volume LVII, Issue 17125, 21 April 1921, Page 7

REPARATION.

GERMANY'S DEFAULT.

ALLIES TO CONFER (By Cable—Press Association— Copyright.) (Australian and N.Z. Cab a Association' PARIS, April 19. ; M. Briand will spend t'ho week-end with Mr Lloyd George at Hythc prior to the inter-Allied Conference being held before the fateful May Ist. The Swiss President (M. Motta) has refused Germany's request to mediate with the Allies on her behalf. The Vatican denies having transmitted new German proposals to the United States. The Berlin correspondent of the "Petit Parision" says it is believed that the Reichsbank is no longer storing gold in Berlin, but in safety places in neighbouring neutral countries. The "Echo do Paris" states that the new occupation area is 47 miles by lt> miles in extent, wiHh a population oi 4,000,000. The military problem is simple. Seven divisions are believed to be adequate, but the economic measures entail complexities. ATTITUDE OF FRANCE. LONDON,, April 19. Although a full meeting of the Supreme Council is rendered imperative early in May, through Germany's default regarding reparations, certain lactors make it urgently necessary that M. Briand and Mr Lloyd George should confer beforehand. It is likely ih.it tho Belgian and' Italian representatives will attend at HytUie if time r.ermits. The first thing for the Conference to consider is France's attitude. Men like M. Poincare and M. Tardieu. now that efforts to get from Germany substantial proposals have failed, are insistent on carrying out the Versailles Treaty to the letter, and object to further parleying over tho terms. The French military authorities, under Marshal Foch, have been engaged in a secret conference during the last day or two on the military measures necessary to enforce German compliance with the Treaty.

AMERICA SUPPORTS FORCE. PARIS, April 19. The special correspondent of the "Matin" with M. Viviani in America states that, to M. Viviani's visit to Washington, M. Briand is assured that if he takes the recalcitrant debtor by the throat and goes through _ his pockets forcibly, he will have American support. M. Viviani has also settled the disquieting Yap problem, and end : ed American uneasiness relating to France's debt.

The correspondent adds: If America refuses permanently to join the League of Nations, the fault will lie with Mr Lloyd George and M. Clemenceau, who, in March, 1919, ignored the recommendation made by 30 American senators tihat. the League plan was unacceptable, and that peace ought first to be settled and the League discussed laier.

COMMISSION'S DEMANDS.

LONDON, April 19. Germany's suggestion that she take over the Allies' indebtedness to America is not received with any appreciable favour in Great Britain or France. These various mancsuvres are taken to mean that Germany is still playing for time. . ( The Reparations Commission has now definitely informed the German Commission tihat it has come to the conclusion that the German Government has made up its mind not to accede to the Reparation Commission's demand for tho enforcement of Article 235'0f the Peace Treaty....Further, in view of this uncompromising attitude of the German Government, the Commission feels bound to take more drastic steps to enforce the rights of Dhe Allies over the products and resources of the German Empire and States. \ There is no evidence that British militarists share the knowledge of what is done at these conferences, indicating France's determination to act alone if need be. M. Briand •is expected to lay Franco's plans before Mr Lloyd George at Hythe to secure his acquiescence and some measure of active assistance in bringing Germany to heel. The Commission, from whose decision there is no appeal, definitely estimates that' Germany has only made surrenders equivalent to eight milliard marks, and she is now faced, seemingly, with the impossible task of finding twelve milliards, in as many days. 'Germany has failed to induce Belgium and Switzerland to mediate with the Allies.

TH|! CUSTOMS SANCTION. (Received' April 20tlh, 5.5 p.m.) LONDO.V, April 19. The Reparations Commission give? Germany until the 22nd inst. to reply to its demands. There is considerable outcry in Germany over the Commission 1 !) instruction to the German authorities to transfer the Reichbank's gold reserve to the occupied territory before May Ist. Altnougli tli© sanction imposing Customs duties lhas not been long enough ih operation to enable definite opinions to be formed as to the possibility, there is already an indication, Both in Great Britain and France, of its boomeranglike character, and that even if Germany exports to the' Allied countries, the tax will bo handed on to the consumer, who thus will help to pay Germany's indemnity.

FRESH GERMAN OFFER. (Received April 20th, -5.5 p.m.) BERLIN, April 19. Germany is formulating a fresh offer to the Allies, by which sue carries out certain restoration work through a syndicate of German contractors, the material being supplied from Gorman supplies, payment for which is assured by bonds which the Gorman Government will hand to the French people involved. Germany also proposes to pay each year for ten years three milliards of gold marks, plus an annuity equal to twenty per cent, of the German exports to the Allied countries. Germany also suggests an international loan of ten milliards of marks, on which she will pay live per cent, interest, guaranteed" by the revenues of the German railways.