GERMAN ITEMS

Hokitika Guardian, 24 August 1923, Page 2

GERMAN ITEMS

AUSTRALIAN AND N.Z. CABLE ASSOCIATION. FRENCH NOTE. REPLY TO BRITAIN. PARIS, Aug. 22. An annex to the French Note states: Out of deference and in courtesy to the British Government we deemed it our duty to reply in the accompanying annex, point by point, to the British Note. This reply which is given in parallel columns says that Franco hitherto had not perceived the British Government’s efforts to approach the ideals of France in tho execution of the treaty. but France is convinced that mutual goodwill will lead to an agreement. The annex cites the French determination. a hundred times stated, not to abandon a centime of the Reparations, or the pledge she fluids, till the reparations have been completely [laid. Britain’s draft in reply to Germany completely ignored France because it did not mention an essential condition. namely, the cessation of passive resistance. The British Note is courteous, but not conciliatory. France would have prefered a continuance of diplomatic exchange instead of publicity. Germany’s capacity to pay is zero by the wish of the German Government. Thus the valuation hv experts is useless. But this is no reason for wiping out the debt. The German debt has been fixed by the Reparations Commission, but Frame, while maintaining her claims, is ready to abandon a sum equivalent to a remission ol her own war debts. France never said sin- would lie content to receive thirtyfour milliards of gold marks. Her claims are, theoretically, sixty-eight milliards and her debts twenty-seven. These are the figures that should lie balanced. The British merchant marine has been reconstituted as a result ol sales to Germany by England. To substitute experts for the Reparations Commission would be contrary to the Treaty.

Franco denies that the Commission is the reverse of impartial and declares that France did not go to the Ruhr to find money for the Reparations, but to seize pledges and clear the German will to pav. France never suggested she would abandon the Ruhr immediately resistance ceased, and before payment was completed. France refuses to accept the threat of the appeal to the League of Nations and says that the British view of Hie Inter-Allied debts does not accord with French interests, because thereunder the Allied debtors of Britain would make good what Germany failed to pay of Britain's debt to the 1 nited States and which Franco contends is practically identical with Britain’s -hare of A. and B. bunds. If the British Cabinet is unable to accord priority in respect to reparations. France will be forced to rigorously adhere u> the Treaty figures. France ardently desired peace, nut tho restoration of Europe is impossible, except by the observance of the Treaties. France is conscious of the lov_ altv of her engagements to the Allies, and is resolved never to disown them. ALL EUROPE CONCERNED. PAR IS. Aug. 22. The French reply to the British Note begins with a statement of branee ? position. This position, France claimn contains the elements of a practical solution of the pi “Mom. The French Government lias never dreamed ot pursuing a selfish policy regarding the reparations, which would be insoluble wiilimit due regard lu the whole of the European interests that aie in voiced.

The French Government have alwavs taken into account, the difficulties of some of their Allies, and particularly the lamentable and persistent unemployment in England. Rasing itself on the A ersaillos Treaty—any infringement whereof would create a dangerous precedent France's statement details the long series of concessions made to Germany, both before and after the asscsment of her indebtedness by the Allied Reparations Commission, which concessions were never required. but which merely respired in further defaults by Germany. To the end of 1922, Germany steadily made worse her position, and she never attempted to put her budgetary or financial house in order. She kept her transport charges to the lowest level in any country. She increased the number of her salaried officials. She did not tax her industrialists oilier ship-owners, to whom she granted all manner of privileges and immunities. ami sin- built up a new mercantile marine, which is to-day competing with the British and French shipping in American waters. Germany, says the Note, has also dug canals, and has multiplied her telephones and other undertakings, regardless of tho cost of all Midi manner of works, works which France has been compelled to post [nine.

Such were the condition - - when France, in pursuance of her previouslyaiinouneed intention of seizing pledges, decided to occupy the Ruhr.

The French Note then upholds the legality of tho Ruhr occupation. It lays down France’s conditions, as already cabled.

The Note goes on:—"Germany's capacity in resources should he estimated periodically, the payments falling due being modifiable, according to circumstances being decided hy a majority vole, of the Reparations Conunis-

The reply declares that there ran ho no doubt that damages to persons and property should he granted priority over war costs. Consequently it is unthinkable that such war costs should lie claimed by the Allies from each other before Germany has begun to pay.

The reply points out that France has advanced huge sums on Germany's account, and cannot suspend the work ot reconstruction, nor can she continue it indefinitely, at her own expanse. Franee lias never repudiated her war debts to America or to England. She is herself the creditor of other Allies to the extent of five or six milliards of gold marks.

The reply claims that any estimate of Germany's future capacity to pay at the very trine when she lias succeeded in momentarily bankrupting herself, would he equivalent to rewarding fraud, and would enable her to make a fresh start, and soon flaunt her triumphant prosperity in the face ot her noedv creditors.

France and Belgium hold sixty per cent of the Allies’ claims on Genua;:-. | Therefore, if the question is to he reI garded as merely a business matter, j what would he said of a company i wherein the holders of sixty per cent of the “hares might he put in a minority by the holders of twenty [ler cent, so as to l.e in a position to meet German in England's interest that Germany should recover. It certainly cannot he in England's interests that France should be debased. THE COMMISSION’S DECISIONS. PARIS. Aug. 22. The French note (inter alia), claims that all decisions of the Reparations Commission were taken with a majority of three votes, France, Belgium and Ttaly. The French Government considered, and still considers, any one ot' the Commission’s decisions sufficient to enable it to act. It quotes various paragraphs of the treaty in support of the legality of its action, and to prove France was perfectly authorised to act alone.

The reply adds: “Rut tho British Government to-day maintains that tho words quoted do not refer to territorial occupation.” The reply goes on to point out that the British Government had already abandoned this contention leaving to each of the respective Governments tho task of determining any action which might seem to me. necessary. Consequently no doubt was possible as to the French interpretation. In supporting the French action, tho reply says: “It is clear that, if Franco had had, ns has sometimes been insinuated, political or military aims sho would not have occupied tho Ruhr, but would have entered the Valley of tho .Main. because this valley, separating as it does Bavaria from Prussia cuts Germany in two. France did not do this, because she desired to occupy tho territories without an “arriero pen--ee." but only for the purposes of being able to receive a pledge, and to exert pressure upon recalcitrant Germany. THE GERMAN RESISTANCE.

LONDON, Aug. 22 The Krone?! reply states that in entering the Ruhr, the French very sincerely offered a friendly arrangement to Germany, but tho Reich regarded it ns an act of hostility, and seized npon it as a pretext for tlie negation of the treaty, and for a withdrawal from nil its well-established obligations, treating the French and the Belgians as veritable enemies, and offering a resistance which it qualified as passive, but which, in reality, was active and violent. This resistance did not come from the population of the Ruhr or Rhineland, but from certain industrialists and from tho Berlin Government. This passive resistance was costing Germany iar more than the free carrying out of her engagements would have done, and the French Government desired it to come to an end. -

The Note says: The French know perfectly well that Germany could pay them wliat she owes fairly rapidly. Consequently. Germany has it in her power to procure progressive evacuation.

The Note reiterates that France will not change her position on this point. Certainly. France does not contemplate tlm ruin of Germany. On the contrary, it is to her interest that the debtor should recover prosperity, but it is not necessary to arrange for her, at the expense of France and tho other Allies, a restoration that is too easy, and too sudden, a result of which would be an industrial and commercial hegemony, which Germany lias sought in vain on the field of battle. Franco is ready to study the question of the reconciling and revival of Germany. and the payments of reparations on the day that the resistance ceases; but France must not sacrifice the reparations to the re-establish-ment of an economic wealth which has onlv momentarily fallen in a low level." The Note declares: “If a settlement of the question of a reduction of the debt is regarded as indispensable, it can be undertaken to-morrow, in proportion to the reduction of the interAllicd debt.- : and, if a settlement of the whole question is undertaken, France is entirely disposed to assist hv j, corrclai ive abandonment of her own claims on certain allies. There is no need to upset the schedule of payments. What Frame cannot accept is that a reduction of the German debt should he made to the detriment of the reparations.”

After arguing that there is no motive for confining this settlement to any other organisation than the Reparations Commission, tlie Note concludes : “Oil these various questions, and on all others, we remain disposed to talk in a friendly way with Britain ami our Allies, and if we give these notes publicity, it is because we have been compelled to do so by the publication of the English Notes ; but we believe that, in the interests of the negotiations, they should be pursued with mure tliserciiou. Although wo ® had nothing to leaf from revelations, oven if premature, it is not our fault that they have been made. We desire to pay our debts to the United States and to Britain. Wo cannot, however, accord privileges to one at tho expense of tlm other. We cannot, therefore, make ourselves conjointly responsible, with Germany, vis a vis with England, in order to nay England’s debt to the United States. We could not abandon tin* whole of our share of the bonds in partial settlement of the inter-Allied debts. We should be, in any case, obliged to come to an understanding with the United States, which is interested in not seeing our financial position weakened. It is no doubt to the interests of England that Germanv should recover, but it certainly is not to her interest that France should be humbled."

GERMANY’S DANGER. LONDON. Aug 22. I he "Daily Telegraph’s” Paris correspondent says; “The thought uppermost in the Frenchman's mind is: What will linnpen if Britain refuses to change her viewpoint? If Britain and France decide to go separateAvavs. the former seeking arrangements with Germany whereby she can recover th n amount oi her debt to America and France devising means to recover 20 milliards of gold marks, it v.ill mean the snapping of the last threads r.f the Entente. If M. Poincare took the sense of the Chamber and the Senate, there would he little doubt ihev would support him. It i.s lielieved that now means of restraint would he imposed on Germany. The occupation of the Ruhr till the end of the year is always envisaged. If no fuel can then he obtained, it is suggested France will extend her occupation, possibly to Frankfort. The pussibilitv of a revolution in Germany is not losi sight of. Here Frenchmen feel that, if the fear of a complete destruction ol the edifice built up by William I, Bismarck, and Mol the, does not induce Germany to accede to the French demand, the inevitable result will he the smash-up of the German Empire. It is taken for granted that the Rhineland and Independent Prussia will he left alone. Thus, the question of France’s future security would lie settled without any ally’s help. 'I hoy argue that if they cannot obtain reparations through Britain’s mistaken policy, they can af any rate cripple Germany economically, and make impossible that revenge which they believe exists in German hearts. A new republic would l>e horn. ( oitceivubK . Bavaria. Saxony, and Vurtemberg would become one.”

BRITISH PREMIER’S MOVEMENTS. LONDON. Aug. 22. Mr Baldwin, the Premier, returned to London from the country last night, and immediately began an examination of the French Reply. He wid consulthis colleagues before going on a holidav at Aaix-les-Bnins. and it is almost certain that he will meet Lord Cttrr.on. who is at Badnollcs. A "FRUITFUL CONFERENCE.'’ LONDON, Aug. 22. The fact that M. Poincare has entered amicably into a discussion oi var_ ions important points in 1-onl Curzon’s Note, is regarded in the highest circles as a distinct advance, nnd one affording an opening for a fruitful conference.