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Hokitika Guardian, 25 January 1923, Page 2

The cable messages have recently referred to the fact that the British reparation proposals ar* now being looked at more favourably by France. The governing principles of the British olaji were: (1) To fix Germany’s minimum liability, and to fix an additional liability, if Germany prosper- !, which should not lie too burdensome, and could lie adjusted to her circumstances. (2) To substitute for the present fixed debt which the Allies owe Britain an almost total remission while Germany’s excess payments Mould go to pay America. Germany’s primary obligation urns to lie put-into the form of fifty milliards of gold marks (about ■£2.500,600.000) worth of thirty-tuo-vear bonds bearing no interest fur the first four years, 4 per cent, interest for the next four years and 5 per cent, thereafter'. The fi>-si scries of Imihl -

for fifty milliards of gold marks u-a.s to be issued forthwith, repayable by or before 1954. A second series of 17.31 milliards ol gold marks, being the deferred interest of the first series of bonds to 1933, would ho repayable in 1965. Eighty per cent, of the fust series of bonds were to bo distributed among the Powers on the Spa schedule of July 15th., 1920. (Franee 52 per cent.. Britain 22 per cent., Italy 10 per cent., Belgium 8 per cent., mid the balance to other Allies entitled to share.) At the outset the bonds were to bo redeemable on easy terms, gradually rising to part at the end of 32 years. The bonds were to he divided into two series the first representing fixed payments rising to £125,000.000 a year, mill the second representing additional payments from the eleventh year onyards. There would he lio sinking fund, hut redemption would be permitted on such liberal terms that, if Germany’s credit Mas restored, the saving in interest Mould cover interest anil sinking fund on Gemini I'"’ 1 )' raised for redemption purposes. Tinplan was offered on the following conditions : --(It That Germany stabilised the mark, and restored her Budget : (2) Accepted Allied financial supervision; (3) Submitted on failure of the first condition, to seizure of her revenues anil assets and to further military occupation of German territories.