The Guardian AND EVENING STAR, With which is incorporated “ The West Coast Times.” TUESDAY, MAY 10, 1921.

Hokitika Guardian, 10 May 1921, Page 2

The Guardian AND EVENING STAR, With which is incorporated “ The West Coast Times.” TUESDAY, MAY 10, 1921.

G ERMAN REPA R ATIONS. The German Reparation (Recovery) Bill was introduced in the Commons in March. The measure was designed to provide for the application Of part of the purchase price of imported German goods towards the discharge o obligations of Germany under the Treaty of Versailles.” This Bill, which was read a second time on March 14, provides for the payment to the Customs by the importer of German goods of a proportion not exceeding 50 per cent, of the value of such goods, all such payments being applied to the discharge of Germany’s obligations under the treaty. The German goods to which the Bill applies are goods im ported from Germany for consumption in the United Kingdom, but not transit or transhipment goods. Goods will he classed as of German origin if (5 pel cent of their value is attributable to manufacture or production in German; The value of such goods is defined as the amount which an importer would give for them when delivered at the place of importation, freight and insurance being payable by him; but in the case of goods returned to the ITiited Kingdom after having . been exported for the purpose of undergoing any process in Germany, such an amount may be deducted as constitutes the difference between their total value and their value free on hoard at the time of exportation and the sum contracted to be paid for the execution of the process will be taken as the purchase price. Importers may be required to furnish particulars as to the country of manufacture or production, and in default the goods will be neld to be wholly German. If by reason ot any payment or advance made, consideration given, or an obligation undertaken before March Bth., 1921, the sum payable to the Commissioners exceeds the amount due from the importer for the goods imported a reduction shall be made by the amount of the excess. The High Court is empowered to vary contracts if it is shown that serious hardship would be suffered by their enforcement, and the Board of Trade may grant relaxations on the recoin mendation of a duly constituted committee. Power is,also given to Parliament to suspend the Act by Order in Council. The Bill provides that the British purchaser of German goods .s required to pay part of the purchase price to the British Government, instead of to the vendor, be lie German, Allied or neutral. It is assumed that the German Government will reimburse the vendor the sums so paid to the British Government. But what, asks a London c ritio, will happen if the necessary legislation for that purpose fails to pass the Reichstag, and what is to prevnt the German vendor from refusing to trade with England at all, or from increasing the price of his goods so that, to all intents and purposes we ourselves should be paying the indemnity? Assuming, however, that German goods continue to lie shipped here in quantity and payments of 50 per cent of their value are made in cash to the Reparation Fund, this will mean that British goods will probably cease to be exported to the approximate value of such payments since, after all commerce is merely exchange. To that extent it would seem that not only will the scheme operate to the detriment alike of our industries and shipping, hut will tend still further to expand the growing and unrestricted trade between Germany and the United States and various neutral countries. Already it is reported that the mere announcement of this scheme has resulted in the withdrawal of credits and the stoppage of German trade with the Allies in several directions; while the difficulties that are likely to arise with neutral countries may he found to be well-nigh insuperable; and the trouble and expense involved in Customs formalities, such as certificates of origin, will he enormous. It is understood that similar legislation is to be adopted in all the Allied countries in Europe and t-hfl Deminipne are also to be invitecj to fall Into line. It would spent to bo (Jeslrnblf that such legislation should

become operative simultaneously. Altogether the scheme is not so beautifully simple as at first sight may appear.