REPARATIONS.

Press, Volume LVIII, Issue 17472, 5 June 1922, Page 7

REPARATIONS.

GERMANY'S ABILITY TO PAY.. A PESSIMISTIC MINISTER. (By Csh'.e— Pre* Assoc.Uti Co.-y:ig-ltt.) lAuatialian »od N.Z. C:ib> Association.) BERLIN, Juno 2. Heir Schmidt (Minister of National Economy) takes a gloomy view of the situation. Addressing Saxon journalists, he said Tie feared tiio economic situation would develop into a serious crisis. He was convinced that Germany would never be able to meet her obligations in accordance with tho Cannot) decisions. The mr.look for industry was distinctly unpromising. Tho miners were demanding an increase in wages and if this were conceded it would result in a big jump in coal prices. Already the importation of dear English coal was causing an alarming increase in the costs of production in German industries. He did not know when the printing of paper currency would cease, but, until it stopped, it was useless to expect an improvement in tho value of tho mark.

NEGOTIATIONS TOR A LOAN. (Received June 4th, 5.5 p.m.) PARIS, June 2. Tho Berlin correspondent of "Lei Journal" says a party of German bankers is in Paris conferring with Mr J. P. Morgan's committ-xs. Tho German Press asserts that a conflict iia.arisen between Mr Morgan's committee and M. Poincard on tho question of concessions to Germany, Mr Morgan taking the view that it is impossible to float an important loan until Franco has consented to a reduction or the German debt. It is stated that Germany hds altered her ideas and now favours a reduction of the reparations to forty-five milliards with capitalisation by means of a loan extending over' at least twenty to thirty years.