LONDON CONFERENCE

Hokitika Guardian, 2 March 1921, Page 3

LONDON CONFERENCE

AUSTRALIAN AND N.Z. CABLE ABSOCIATIO (Received This Day at 9.45 a.in./ LONDON, March 1 Von Simons proceeded that Ge many’s burden had increased throne J the deprivation of territory from whit she previously had derived these con modifies Forcing them fourfold wottl constitute a menace to the rest of tli world. Referring to th 0 export duty this must either be paid by the cor sinner if they accept such a price, o He paid by German industry, whic would thereby lie weakened of it power to compete, resulting in a de cline in exports of many articles whirl they were now able to export owing li .the favourable exchange and lower cos of production. These conditions, however, woidd probably not be fasting.'' .. ■ LONDON, March 1. Simons remarked that the prosen conditions really represented a state o sickness of German industry, causes by the condition of the currency. I was difficult for Germany to make de finite proposals, but the German peoph were willing to make sacrifices ant were prepared to submit definite in stead of indefinite propositions. Th< German Government thought that pay ments should not he too heavy, or extended over too long a-period, the German people fearing to see their children and grand-children overburdened. Government thought it best to fix the total capital sum payable. They could thus pay interest and sinking fund in the usual way. Simons said if the Paris proposals were discounted at ’ eight per cent, the value would he fifty milliard gold marks. There was a dis- ’■ pute between German and Allied experts over the amount already paid in reparation. Germans estimated it at twenty milliards, thus reducing the amount to thirty milliards. This, according to her experts, was the utmost Germany could pay. They will agree to a joint commission to value reparations paid, and suggested in order to make German obligations immediately affective, they should issue an international loan as soon as possih#j, on which Germany would find interest sinking fund. .VON SIMONS’ CONCLUSION. LLOYD GEORGE’S STRAIGHT ANSWER. (Received .this dav at 1.30 p.m.) LONDON, March 1. Von Simons stated the experts, however, thought it impossible at the present time to raise more than eight milliards, and then only by special terms, such as freedom from income tax, to which some of the nations might object The remaining twenty two milliards to remain unissued, whereon Germany would pay interest and sinking fund. The term for the indemnity shoul I be fixed at thirty years. During the next „ five years repayments would have to be in labour and kind. 1926 would be the year of Germany’s capacity to pay. She would he able then to mobilise German industries and arrange a plan of payments. Hon Lloyd George at the conclusion of the statement said: thought it worth while, lie could put in any documents, but from what he . had said he thought the German Goveminent completely misunderstood the realities of the position. The Allies had already agreed that the proposals made could not either he discussed or considered as an alternative to the Paris proposals. The Allies would discuss the situation in the afternoon and meet the Germans to-morrow morning.