WAR DEBTS.

Hokitika Guardian, 17 August 1922, Page 3

WAR DEBTS.

OABLE NEWS.

AUSTRALIAN AND N.Z. CABLE ASSOCIATION. BRITISH OPINION. (Received this day at 11.30 a.m.) LONDON, Aug. 16. British official opinion, does not l>elieve France will take independent ac, tion precipitately. There are legal difficulties under the Versailles Treaty and M. Poincairo is a stickler to the letter of the law. Under the Treaty, the matter reverts to the Reparations Commission, which, has already indicated the trend of their opinion by publishing the text of the proposed resolution cabled on the 6th. As on the Allied Conference, where M,. Poincaire was in the minority one, so in the Reparations Commission France is in a minority. According to the Treaty, the Commission is entitled to grant a moratorium on a bare majority and only when it has decided that Germany has wilfully failed to meet her obligations can France recover complete freedom of action, otherwise she would be violating the Versailles Treaty. It is considered most unlikely that the Reparations Commission' would declare Germany in default. For France to act without reference to the Commission would be indefensible. It is not thought therefore, that she would do so, despite M. Poincaire’s reported statement that Government would retain their liberty of action whatever ' the Reparations Commission oi Treaty procedure. Another element ol hope lies in the optimism of M. Theunis who declares his conviction that tho Allies will meet again soon and the problem wlil be settled satisfactorily.

CALLED TO CABINET. MEETING. (Received this day at 9.50 a.m.) PARIS, August 16. It is stated General Foch and General De Goutte have been summoned to Rambouillet in connection with a Cab net meeting there.

POINCAIRE welcomed. (Received this day at 9.50 a.m.) PARIS, August 16. When M. Poincaire arrived in Paris, he received an unprecedentedly enthusiastic welcome, crowds shouting “Thanks for France; Down with Boches Make them payl”

HERR WIRTH’S POLICY. (Received this day at 9.50 a.m.) LONDON. Aug 16. The “Daily Chronicle’s’’ Berlin correspondent intervewed Herr Wirth, who stated:—“Our policy must ‘ be first, bread for the people, then reparations. We can and will observe our obligations only so far as assuring a bread supply for the people’s physical existence permits. We have goodwill and patience in a. large degree, but our strength is ended. For mere humanity’s sake we must assure the people bread to prevent them sinking into misery, despite that the difficulties in securing bread has been increased'by French action in Alsace Ixirraine. Only a moratorium extending for many months will lie of any value. Six months would have been quite sufficient if granted a while ago but as the mark depreciated the morn-

torium becomes less and less effective. The pyschological effect of a morn- ' torium would have been of great value. That value is now absent. A I feeling of danger and uncertainty is one of tbe worst features of the situation.” Herr W’irth discussed the flight of capital, declaring the best preventive is to make it worth while to keep capital at home. That could best be achieved by stabilising the mark, which could only be done bv halving the reparations We need confidence for the mark. The catastrophe is due to the dwindling confidence caused by the fear that Kranee wants Germany’s life. That is the great question. The sword is over outhead The collapse of Germany would IK.1 K . an unparalleled thing. If goodwill were introduced into Europe, Germany may even yet he saved.

FRENCH VIEWS. UNITED SERVICE TELEGRAMS. (Received this day at 11.30 a.m.) LONDON, August 16. The “Daily Mail’s” Paris correspondent says France’s next move will be the summoning of the Council of Ministers on Wednesday when M. - Roincaire will unfold his plans. It is reliably stated these will insist on the use of all the rights given to Franoe by the Versailles' 5 Treaty. . A feeling exists that there should be an ea»ly summoning of 'pnjrliament to ratify the decisions. While no attempt is made to minimise the seriousness of tho situation, it is thought a breakdown may bring the Allies together for a. general discussion of debts and indemnities. France is ready to restart negotiations at the points where they stood before the issue ol Sir A. Balfour’s note.

Questioned on arrival M. Poincaire emphatically affirmed the desire to maintain the Entente. He said we have disagreed; to-morrow we can act separately, but there will be no breach ol the Entente. The friendship of the countries is far above tho present difficulties however serious they may appear.

POINCARE’S ATTITUDE APPROVED. (Receivod this day at 12.25 p.m.) PARIS, Aug IC. The Cabinet meeting approved of Poincare’s attitude at the London Conference and declares itself at one with him in his stand.