REPARATIONS.

Press, Volume LVIII, Issue 17470, 2 June 1922, Page 7

REPARATIONS.

THE GERMAN PROPOSALS. STATEMENT BY MB LLOYD GEOBGE. (Bj C»M«—Praia Atspciition—Copyright.) CAu*tr*lj»n ud N.Z. Cable Aaaocifttion.) (Received Juno Ist, 7.5 p.m.l I/ONDON, May 31. In the House of Commons, Mr Lloyd George made n statement dealing with reparations. Ho said the Reparations Commission was not yet able to say what their definite answer lie t<) the German proposals, therefore it was difficult for him to enter upon a discussion of the subject. Anything ho might say could hardly be useful at tho present moment, and might easily lx> harmful, but it might Ivo assumed that the critical pha.se presented n few weeks ago had passed. There was one fact which had upset the balance of tho Reparations Commission, as it had also upset the League of Nations; that wm the nbsenco of America. Mr Lloyd George went on to say that the absence of America from the machinery of tho Versailles Treaty made it less effective and made it work with less precision. There was no cause for disagreement between France and Britain. He was glad Germany had made a real effort, to meet tho requirements of tho Reparations Commission. His conviction was that safety for Franco could be found only in the practice of what was provided for in the Leaguo of Nations Covenant. "Were wo committed in any way to join in nn iinvasion or any further occupation of Gorman territory? What ground of objection could there be to the suggestion of an international loan as a means of enabling Germany to pay a large portion of the reparation demands ? Ho believed Germany was honestly doing her best in tho face of very considerable political difficulties, consequently 6he was entitled to every consideration and respect. A policy of non-fulfilment by Germany would be a policy of disaster for her. It was not a question of France acting alone. If there was defiance of the Treaty of Versailles we wero .signatories of it and were committed to it. If a Government did come in Germany to resist the Treaty it was not France that would be left nlone to exact the conditions. We should act. W T e had stood for a policy of moderation and restraint, nAd thereby rendered ourselves liable to a good deal of misrepresentation in France. We should still stand for moderation as well as for a policy of fulfilment. Any isolated action by our nlly would bo disastrous to the Entente. A proposal had been made outside that Great Britain should remit the whole of tho three thousand million of debts owing to her by other countries without receiving the remission of a thousand millions which Great Britain owed. He declared that no Government could possibly contemplate such a thing, although we were perfectly willing to enter into an international discussion with a view to obliterating war debts owing to Great Britain provided we reI ceived some benefit in regard to tho debts which Great Britain owed.

MORATORIUM CONFIRMED. ' STBICT CONDITIONS IMPOSED. (Received June Ist, 9.55 p.m.) PARIS, June 1. The Reparations Commission, replying to Germany, while regretting that Germany did not begin such steps earlier, says that the action taken and promised constitutes a serious effort on Germany's part to meet the Commission's requirements, therefore they confirm the provisional moratorium granted on March 21et. The Commission, however, points out that this postponement is liable to cancellation at any time if the Commission is satisfied that Germany has failed to carry out the conditions laid down. The Commission reserves the right to cancel the postponement if, through failure to raise an international loan, Germany fails to carry through her promise of arrangements regarding the floating debt or failure to find other approved arrangements for dealing with her budget deficits and floating debts.

MTJTTEBINaS IN GERMANY. (Received June Ist. 9.55 p.m.) BERLIN, June 1. The Press generally adversely criticise the German Reparation Note, and it is already suggested a political crieia will arise in that connexion when Reichstag resumes after the Whitsuntide iecess. To-day the People's Party supported the Junkers in a • no-confi-dence motion, which the Reichstag nevertheless defeated by a substantial majority. The "Deutsche Allgemeine Zeitung," Herr Hugo Stinnes's organ, declares that the Note is the most perilous and dishonouring to Germany ever issued.