GERMAN ITEMS

Hokitika Guardian, 3 August 1923, Page 3

GERMAN ITEMS

AUSTRALIAN AND N.Z. CABLE ASSOCIATION. FRENCH 'ACTION. PARIS. Aug 2. In consequence of Lord C urzou s and Air Baldwin’s speeches, the Foreign Office has published the reply sent to Britain on Monday, insisting that Geimany must end passive resistance. THE BRITISH REPLY. (Received this day at 12.25 p.m.) _ LONDON. Aug. 2. Lord Gurzoii in the House of Lords, after recalling the steps taken on reV coipt of iho German note and Government's intention to assume responsibility for the draft reply for submission to tho Allies, said in this draft they expressed the opinion that while nothing inconsistent with the Treaty of Versailles should he done, advantage would be derivable from examination l>y impartial experts in co-operation with the Reparations Commission, into Germany's capacity of payment. As to tho question of German guarantees, the draft pointed out that their economic value must largely depend on factors which the German memorandum had not mentioned, such as Hie stabilisation of tho murk balancing of tho German budget. That no guarantees would be effective unless provision were made for some form of international control of German financial administration. The draft terminated by adcising Germain' if it desired a resumption of inquiry, to withdraw without delay the ordnances and decrees which have organised and fomented the policy ol passive resistance and unequivocally disavow acts of violence and sabotage which, in some eases, accompanied it. The draft also expressed the belief that such action on the pari of Germany, would involve recon.-ideral inn by the occupying powers of tho conditions ol their occupation and a gradual return /—to.normal features of industrial lile in Ruhr.

ill covering notes accompanying the draft sent to the Allies, the British Government gave fuller explanations ol its

views on these points. Lord Curzon said that Government and urgent Interallied discussions should he opened without delay, whether by conference or otherwise, tor tho purpose of elaborating a comprehensive general final financial settlement. Ihe replies from the Allied Governments had all been received, except. Irom Italy, who had not thus far sent a written answer hut expressed general

agreement with tho British Government’s views. The Government had dew voted most careful and anxious consideration to these replies. Many weeks might easily he consumed in a preliminary interchange of opinions on the lines now foreshadowed by the Allies. The British Government cannot too often repeat that they regard the interests of the Allies ns hound up with our own ami they should shrink throughout from any action that might he thought to be indicative of Allied disunion.