Hokitika Guardian & evening Star FRIDAY, JUNE 25th, 1920. ENFORCING THE TREATY,

Hokitika Guardian, 25 June 1920, Page 2

Hokitika Guardian & evening Star FRIDAY, JUNE 25th, 1920. ENFORCING THE TREATY,

!ms .enforcement of the penal clauses of the treaty of peace with Germany is now getting to closer grips. The Boulogne Conference now sittipg as a preliminary to flip Spa. Conference, is i reaching a definite decision regarding ! the indemnity question, Jn the Peace Treaty it was agreed that pending fill} [ determination of Allied claims, Germany was to pay the equivalent of twenty thousand million gold marks, out of which shall first- be met the expenses of the armies of occupation and such supplies of food and raw material as the Allies may judge essential to pnable Germany to meet her obligations, If was further set out that iu periodically estimating Germany’s capacity to pay, the Reparation Committee shall examine the German system of taxation first, to the end that the sums of reparation which Germany is required to pay shall become a charge upon all her revenues prior to that for the service or discharge of any domestic loan; and secondly, so as to satisfy itself that in general the German •scheme of taxation is fully as heavy proportionately as that of any of the Powers represented on the Commission. Naturally matters regarding such a huge monetary transaction move slowly; and with an unwilling creditor more so. As in war, so in peace, events do not fall out to the pleasure of wishes, nor with the swiftness that meets the approbation of the. man in the street. Just as the unattached onlooker viewing tbo war from afar with a fine, spirit of optimism borne of national pride, predicted the war would be over in a brief six months, so in regard to the settlement of peace, the same optimistic gentlemen expected lienee to lie signed, sealed and delivered and the world and business relations back to normal in as few brief weeks. Experience has demonstrated that much patience, and consideration lias to he shown before matters can swing into a real settlement gait. The Boulogne conference is a milestone on the way. It is an indication that tho Reparation Comtqission working away all the time lias reached its first conclusions

as to Germany's ability to pay. It is to be assumed that at Boulogne the representatives of Britain, Italy, Japan France and Belgium have been guided by the report of the Commission when they agreed uxion the principle that the annual payment by Germanw will bo three milliards of gold marks, or noniin. ally one hundred and fifty millions sterling anually. Looking to the figures involved in the war settlement, the demand is not exorbitant and Germany will be expected to pay promptly. According to a newspaper report from France, tile French Premier gained an essential point at the Boulogne Conference by securing a condition if Germany does not pay promptly the Allies will (not may) seize German towns and impound revenue, and further territorial occupation if necessary to exert pressure. • This condition is really part of the treaty provisions for the measures which tile Allies shall have the right to take in case of voluntary default by Germany, and which Germany agrees not to regard as acts of war, may include economic and financial prohibitions and reprisals and such other measures as may he determined upon. It is clear, then flic treaty in its financial clauses is about to be enforced.