ECONOMIC MANIFESTO

Dominion, Volume 13, Issue 142, 11 March 1920, Page 5

ECONOMIC MANIFESTO

FORECAST OF COUNCIL'S

DECISIONS

PRINCIPAL NEEDS OF GERMANY

AND RUSSIA

REPARATION OBLIGATIONS

By Telegraph-Press Association-Copyright

London, March 5. The Supreme Council drafted its economic manifesto with great difficulty, and France is likely to insist upon further modifications. It is understood that the manifesto shows pro-German tnd soms pro-Bolshevik tendencies, bearing traces of British .inspiration in Paris. Anticipation of the contents of the manifesto is profoundly disturbing France, which rightly or wrongly, but with passionate sincerity, regards the Peace Treaty as less favourable to her than to the other allies. She now sees a general campaign of revision in favour of Germany, and also the possibility of a. loan to Germany, based on the very securities upon which France is lelying for part of the payment, of reparation.—"The Times." (Roc, March 10, 11.20 p.m.) London, March 8. The newspapers contain a forecast of the Supreme Council's economic memorandum. The main lines are in accord with the forecast cabled on March 3. The keynote of the manifesto ia said to he tne necessity of restoring German? and Russia economically. Until that is done, the effective recovery of Europe generally is impossible. Russia's firet requisite is peace. The second is the reorganisation of transport. The council urges that States bordering on Russia should ncccpt any reasonable terms. This would enable the resumption of trade and importation into Russia of the necessary railway material, to which the Soviet Government attaches the greatest importance. The council considers that Germany's principal need is a precise • statement of her obligations under tho Peace Treaty's reparation clauses. It is not proposed to revise the Treaty in this regard, as wide powers have already been vested in the Reparations Commission. _ The Council therefore urges the Commission to proceed without delay in fixing the amount Germany must pay. To enable this to be done, Germany will be requested to furnish her own estimate, as arranged before the Treaty was signed. The proposal for allowing Germany to raise ah external loan presents the greatest difficulties. It is believed that Germany's economic restoration dep\nds on a substantial foreign loan, which, however, is unlikely to be forthcoming if repayment must wait until the indemnity" is wiped off. On tho other hand, France urgently needs the payment of indemnity in order to restore the ravages to her industry. While, therefore, the Council suggests that repayment of the loan should take precedence of the indemnity payment, it would be subject to certain safeguards. It is likely that modifications will be made, 'based on the French representations, which have now been presented to the council. The memorandum also emphasises the necessity for strictly limiting expenditure on armies and navies, and for friendly international relations and Governmental economy.—Aus.-N.Z. Cable Assn.

[A cable message, dated Ixmdo'n, March' 3, stated that the Supreme Council's decisions regarding economic questions recommended that greatly-increased supplies of raw materials should be sent to Germany. The of German industries affected the' whole of Europe, and it was tho duly of the Allies to help therein. All the Allies should cooperate in restoring Belgium and Northern France. The economic equilibrium could not be re-established without putting Germany and France in something like their pre-war condition to pursue their industries. The council recommended the use of barter in countries whose currency was chaotic, also concerted action to stabilisa' exchanges through loans of deposits and paper currency.] FRENCFOBJECTIONS TREATY TERMS MUST BE PERFORMED. ■ (Rec. March 8, 11,20 p.m.) London, March 8. Messages from Paris state that the French Ambassador at London has been instructed to say that France is willing to sign the memorandum, with tho following reservations—First, France declines to press that border States shall make peace with Russia; second, reparations under the Peace Treaty must take precedence over loan payments. An official communique from Pans says that the French Government's objection to tho memorandum are mainly based en the view that the terms of The Peace Treaty must be rigidly performed. France refuses to aecopt a disguised revision of the Treaty or a diminution of tho powers of the Reparations Commission. ~ . , Negotiations on these points are in progress. The "Daily Telegraph s" Pans correspondent says that French feeling is deeply stirred by reports regarding the Council's memorandum. The French people cannot forget, even if they wished, what damage the invaded areas have suffered, and cannot tolerate the proposition that Germany's economic straits should bo placed on the same footing rs France's, which are so largely the result of Germany's invasion. The "Daily Telegraph" says thero is extreme nervousness in Franco lest France may after all bo cheated out of her duo, and it is considered that tho other Allies have realised their aims, including Britain, which sees tho German Navy, maritime commerce, and colonies destroyed. Franco alone is in danger of getting littlo .savo burden?. Even Alsace-Lorraine is not an acquisition, but merely, a restoration of stolen property—Aus.-N.Z. Cable Assn. "EQUIVALENT TO REJECTION OP TREATY." (Rec. March 10, 7.35 p.m.) Paris, March 8. ' M. Tardieu, in an article in the "Petit Parisien," declares that tho London economic memorandum is equivalent to a rejection of the Versailles Treaty, to Franco's detriment.—Aus.-N.Z. Cablo Assn. MKHORANDAIiiOM GERMAN GOVERNMENT THREAT OF BANKRUPTCY. (Rec. March 10, 7.35 p.m.) Paris, March 8. The "Journal's" Berlin correspondent 6tates that the German Government ban drawn up economic memoranda for submission to the Peace Conference, showing that in order to obtain food supplies Germany needs a lnnn of fortytwo milliards of marks in gold. The Government also nsks for a modification of the Rhino occupancy, and finally declares that if the terms arc not accepted Germany will declare itself bankrupt next autumn—Aus.-N.Z. Cable Assn.