LATEST CABLE NEWS GERMAN ITEMS

Hokitika Guardian, 15 May 1923, Page 2

LATEST CABLE NEWS

GERMAN ITEMS

AUSTRALIAN AND N.Z. CABLE ASSOCIATION. BRITISH REPLY. TO THE GERMAN NOTE. "LONDON, May 13 The text has been issued of the British reply to the German Note, which was handed to the German Ambassador to-day for transmission to Berlin. Tho reply states that Germany’s proposals came as a great disappointment, and the unfavourable impression they created in the British and Allied Governments should have been foreseen and guarded against, The German proposals far from corresponded, either in form or in substance, with what Britain might reasonably have expected, for the following reasons: First, Germany offered a sum far below the moderate amount forming the basis of tho , scheme Britain submitted to the Conference in January, and the total of which Germany must have known i n advance would be unacceptable. Even this inadequate sum was made dependent upon the issue of a series of international loans, the success or which in tho circumstances predicated that it must he largely speculative. Moreover, Germany proposed arrangements in connection therewith which involved less burdensome conditions to Germany, if the loans were unsuccessful than if they were successful. Therefore, they did not contain an incentive to Germany to attempt to raise loans. Secondly, Germany’s failure indicates more precisely the nature of the guarantees she is disposed to offer which was particularly regrettable. Britain was persuaded that Germany in her own interests would . see the advantage of displaying a greater readiness to grapple with the realities of the case, and would proceed to reconsider and expand her proposals, converting them into a feasible basis for discussion. In such discussion Britain, at the suitable moment, would bo ready to participate liy the side of her allies, with whom she shares a practical interest in the question, and which she has no intention of abandoning. But the first step towards terminating tlio present situation of international peril must he a more serious and precise contribution from Germany than hitherto has been forthcoming. ROME, May 13 Mussolini’s note reiterates that tho reparations and, inter-Allied debts are inseparable. He expresses willingness to support Italy’s share of the sacrificcs in order to ensure ail economic settlement, hut declares that Germany’s offer does not afford a basis for inter-Allied discussion. PARIS. -May 13. Official circles welcome the British . and Italian denunciation of tho German offer as unacceptable and unworthv of discussion.