Reparations.

Hokitika Guardian, 4 January 1923, Page 2

Reparations.

AUSTRALIAN AND N.Z. CABLE ASSOCIATION. A BRITISH PROPOSAL. LONDON, January 2. m Mr Bon nr Law proposes that if the British plan is accepted the inter-Al-licd debts he written off, except n small percentage, which France and Italy are to pay Britain in German bonds. The British scheme caused a sensation at the conference. It is understood the French regard it as totally unacceptable. on the ground that it jettisons the Versailles Treaty. ' AT THE CONFERENCE. PARIS. January 2. At the Allied Premiers' Conference M. Poincare after detailing the French pin, said that Cuno, Chancellor of Germany, had requested that the con- . lereneo should hear Herr Bergmann enunciate the new German proposals. M. Poincare said France objected to this, suggesting that the Berlin Government's scheme should he submitted in writing. The Allies unanimously agreed with this. Air Bonar Law then submitted the following British scheme, covering both the reparation's and the inter-Allied debts. He proposed that Germany j should pay nothing for four years, and then should pay 100 millions sterling yearly for the next four years; then 12A millions yearly for the next two years; and after ten years 16G millions a vear. or. such smaller sum. but not less than T 25 millions per annum; as an impartial tribunal may fix: the Gormans to pay in five per cent bonds redeemable at Germany’s call. Mi Bonar Law proposes that, if the Biitish plan is accepted, the intercept for a small percentage. which France and Italy would have to pay to Britain in German bonds. .TARTS. January 2. At the Conference. AD- Bonar Law detailed his proposals. At the outset the German bonds would lie redeemable on easy terms, gradually rising to par at. the end of 32 years. The bonds would he divided into two series, the first representing the fixed payments, rising to 125 millions annually; and the second representing the additional payments from tile eleventh year onwards. There would be no sinking fund hut the redemption of the bonds would he permitted on such liberal terms that if the German credit were restored, the saving on interest would cover the interest and sinking fund on any German loans raised for redemption purposes. This would allow Germany to change her permanent debt into n terminable debt, without expense. In ordei to give Germany a real chance there should he complete freedom as to payments in foreign eurren-eii-r durinrr the initial period, and minimum deliveries in kind. The supplies of coke to France, and of coal to Italy, and possibly of dyestuffs may be eon--tinned on a reduced scale. The plan is offered on condition (1) that Germany stabilises the mark and restores her budget: f2) accepts Allied financial supervision; and (3) submit to a seizure of revenues and assets, and to a further military occupation of German territories On the understanding that her reparations plan would he accepted, and ■ill the sanctions dropped, Britain in 1 the matter of inter-Allied debts proposes (1) That the gold deposits held !iv Britain as security for the Inter-Al-lied debts shall he applied towards Hie reduction of the debts. (2) That the first series of German hands which will lie received by France hi respect of the Belgian war debt, and •ho £75.000,000 in bonds which are to he received by Italy for reparations, are to ho tiansl'ered to Britain. (3> That the balance of the net war debts as between the European Allies are to he completely written off, on the condition that the debtors transfer their interests in the second series of bonds to pool for distl'ibuion to those that are indebted to America, in proportion to their American debts. The governing principle of the plan ire: G> In fix Germany’ minimum liability. mid to fix ail additional liability d Germany prospers, winch shall not he too burdensome, and can he adjusted t<> circumstances; (2) to substitute for the present tile fixed debt which 1,1(1 Allies owe Britain an almost total remission, while Germany's excess puy- • nents shall go to America. Germany’s primary obligation would be put into the form of 50 milliards ot gold marks worth ot 32 vear bonds, these hearing no interest for fontyears; then hearing four per cent, for the next four, and live per cent, thereafter. The first series of 50 milliards, of gold marks would ho issued forthwith .and h« repayable hv, or before 1951. The second series of 17.31 milliards of gold marks (being the deferred interests on the< first series up to 1933) would he repayable in 1905. Eighty per cent, of the first series ol bonds would ho distributed among tho Powers on the Spa Conference schedule. The reparations commission would) keep the other 20 per cent, for expenses'. Belgium would waive her priority rights, ft is proposed that a Foreign Finance Council shall control Germany’s tinanco This Council would consist of represeni. 'ivis of Britain. France. Belgium, Italy, America, and one neutral country. The Gcirman Finance Minister would ex-officio he chairman. Interference with German democratic independence is inevitable, but the council will have wide powers, which shall expire at the end of 1928. Air Bonar Law, at the conclusion of the conference, made a statement to Allied journalist's. He emphasised the fact that Britain had made her hudget position strong by impoverishing her taxpayers. The result of this was unemployment, which in Britain, was as great a scourge as in other countries. and might cause serious risk, unless trade developed. If Britain were financially strong, he said, she would willingly have cancelled the German and the Allied debts while still paying tho British debts, The present British proposals were entirely independent of America. . IT Britain received all her dues from the Allies and Germany, these would notequal the British indebtedness to America. At the moment it was impossible for Germany to make adequate payments, because the amount of money' necessary for this purpose would be so great as to destroy the possibijity of a re-establishment of German credit. It was possible- to get a certain amount from Germany to-day. but not sufficient to satisfy current demand'. ami at the same time enable

Germany to reestablish licr credit. These two objects at present were incompatible. ALLIED PROPOSALS. [Received this day at 8.30 a.m.) PARTS. Jau on ry 3. M. Poincare inlorined Cabinet that the French plan represents the minimum acceptable and unless it is used ns a basis, France will be compelled lo declare her disagreement, and pinto take pledges alone. Cabinet expressed the opinion that the British note represented a considerable reduction ol French credit, new delays without pledges, and a. definite abandonment if the essential clauses of Versailles licaty Cabinet rejected the British proposals as absolutely imadmissnble. M. Poincare intimated he would inform the conference that France could not, admit any discussion nt the British proposals. £ Official circles believe Mr Runar Law w will not adopt a hostile attitude, if France acts alone, but will in that event endeavour to ensure that the French do not encounter hindrances from British influence in Berlin.