ALLIES’ DECISION.

Hokitika Guardian, 2 September 1922, Page 3

ALLIES’ DECISION.

„ “ _ ON REPARATIONS. iWhUttUt A tit) *fc. **»•* A-MK4AWW* LONDON, August &[■ Before the Reparations Commission met, M. Dubois (the chairman) had a lengthy interview- with M. ro.nca.ro. The Commissioners then met mforma lv before the official meeting opened. It was expected that a moratorium would be refused, by three yotes to two, M. Dubois giving his casting vot . h The Commissioners unanimously agreed that the German proposals were not acceptable. _ Unanimity vanished on the question of a moratorium. The Commission again adjourned and M. Dubois again saw AI. poincaird. When the Commission resumed only Sir F. Bradbury supported the grant ing of a moratorium to the cud of the and Belgium voted against a moratorium. The Commission then adopted unanimously the resolution as cabled It is now generally recognised that Germany has a respite and that it is due to the generosity of Belgium. The plan adopted is one that submitted by Belgium and Italy jointly. It should be explained that theie ar monthly German Treasury Bonds, securing'fourteen millions sterling wo.tli of bills, which, when they mature wul he met with gold marks. The Belgian and the German delgates will now meet m Berlin, 01 Brussels to discuss the details. The only outstanding question now is the character of the securities for aceeptasco by Belgium. the “Daily Express” understands that Gtrmaiiy will offer three hanks; the Deutscher Bank, Dresdener Bank, and Disconte Bank, and that, tailing the Allies acceptance of either Germany will deposit money m Copenhagen or Berne.

COMMISSION’S REPORT. PARIS, August 31. The Reparations Commission to-night issued the following communiquei ‘•ln view of the fact that the Reparations Commission lias not seen fit to grant the moratorium requested by Germay, it Ims not thought it- proper for the time beiiig, to pronounce upon the proposals from Germany regarding coal and timber deliveries. ’’ ‘‘The Commission reserves the right to enforce measures similar to those offered by Germany, if the future coal and timber deliveries are not satisfactorily carried out.”

‘•The Commission has unanimously adopted a resolution as follows :—1 he Commission, replying to the demand for a moratorium, dated the 19th <>f July, and considering that the lleich has' lost alt its credit -at homo and abroad, and that the mark has falle-a to three-thousandths of its value, decides (1) to postpone its decision upon tlu> demand from the Reich until it has completed a scheme for the radical reform of the public finances of Germany, providing for: (a) the balancing of tiie budget; (b) in the event of tho Governments represented on the Commission assenting for an eventual reduction of the external charges of Germany to an extent regarded ns necessary for the reparation of the country; (c) for military reform; (d) for tho issue of international external loans with a. view to the consolidation of the financial situation.

(2) That in view of the time necessary for the preparation and execution of the measures mentioned above, the Commission will accept, in lieu of payment by cash, the payments due on' the loth of August and t*c loth of September ; and (unless other arrangements are subsequently made) also for the payments due on the loth, of October and the 31st of December. German six-months Treasury Dills, hacked by a. guarantee upon which the German Government, and the Belgian Government (to whom the payments have been assumed) must agree, and in default of such agreement hacked by guarantees, by means of deposit of gold in hank acceptable to Belgium.

BRITISH DELEGATE'S VIEW. LONDON, August 31. Sir F. Bradbury, in an interview, said the Commission’s decision gave Germany a respite from tlio cash payments dining 1922, provided that she found suitable guarantees for the treasury bills. An alternative arrangement, in default of the guarantees, was the ear-marking of about fourteen millions worth of the Reich Bank’s gold, which, in‘Sir F. Bradbury’s opinion, W ns undesirable, on the ground that it meant pledging a portion of the gold reserve in the Reich’s Bank, which was nu important factor in the interests of German credit. Sir F. Bradbury said he hoped an arrangement would he reached for guaranteeing the hills. He added: The entire question of future paymets especially those 'for 1923, remained to he considered. The London Dress comments approvingly upon the decision regarding the reparations, except tlie Lobon# “Daily Herald” and the “Daily News.” The latter doubts if the decision will steady the mark, or inspire Germany with hope saying n prolonged moratorium would he the only solution of the problem. The “Daily News” also declares that provocative threats are ever in the mouths of Frenchmen. Statesmen hjpst disclose that the British part in bringing France to a proper frame of mind is to forgive French debts.

The “Morning Post” says: “Tile existniieo of Europe, as the centre of civilisation, depends" upon Germany’s response to the Allies’ generosity. The reparation way is hard, but it is Germany’s only way to salvation, which cun only be won at this" price.”

The “Daily Chronicle’'" says:—“ln substance. Sir F. Bradbury’s policy has prevailed, thanks to the magnanimous and irresistible proposal by Belgium, and the judgment and forethought of the Belgian aniT Italian delegates Europe has secured another breathing space.” The “Daily Telegraph” says:—“lf the Allied Governments accept and endorse the Commission’s decision, they will he in ti very different postyiorv (ip

( which they can converse with Berlin), from that in which they would have been if Germany could see tho Entente Powers drifting apart, and their reservoir of goodwill rapidly emptying. The Commission did good work. It rests with their Governments to consolidate it, and to look ahead berimes tp the next and more difficult decision.” The “Daily Herald” declares: “AT. Poincare manoeuvred the Belgians’into such a position that if, as seems inevitable, the Germans again default in four months time, the Belgian Government will be compelled to consent to whatever penal measures the French Government may see fit to put into operation.” i The “Mol'ning Post’s” Berlin correspondent says: “The most thinking Germans are convinced that France wants coal ahd not reparations. If France ever occupies the Ruhr, The Get mains must work; .for France or starve. German industry, having lost the Lorraine iron and Ruhr coal, will . have only one asset, namely, labour. France could then safely allow that labour to build up Russia, which Would enable France to secure reparation payments from an earning people, and later indirectly recover from Russia compensation for the French investors. Tiiis view lias prompted many quarters to suggest a Franco-German rapprochement, which would allow German industry to grow sti'ong again, without France fearing retaliation from a • resurrected Germany.’