The Guardian (And Evening Star, with which is incorporated the West Coast Times.) THURSDAY, JUNE 19th, 1924. THE REPARATIONS.

Hokitika Guardian, 19 June 1924, Page 2

The Guardian (And Evening Star, with which is incorporated the West Coast Times.) THURSDAY, JUNE 19th, 1924. THE REPARATIONS.

The recent change in the French trv anil Presidency, coupled with the fact that Colonel Dawes who was at the head of the .Reparations Committee dealing with the position of tiermany has been nominated by a sweeping majority of his political party for the Vice-Presidency of the United •States draws special attention to the ultimate settlement of the reparations issues. The settlement is overdue certainly, and it is to be hoped that events are converging to that point when a finality will bo possible. The reparations’ report gave much satisfaction in the United States as producing

a method whereby the much desired settlement might be reached. A New Vork iinancial journal has reviewed-the report at ionsidoiable length. going into details minutely, fn the eouise of its remarks tho paper says: The report of the Dawes Committee appointed by the Reparations ■Commission to give advice upon balancing the German budget, reoiganising the German currency system, and the ability of Germany In pay Reparations, lia.s met with an extraordinarily favorable reception. Upon the first two subjects no serious difficulty was apprehended, once the third was settled, but tunsidei ing the almost hopeless divergence of opinion- upon that, even Is'tweeii the Allied governments, the Report lias met with a success that conics up to all reasonable expectations. The government of Great Britain is unreservedly for jts acceptance without amendment and the Belgian and Italian governments are quoted as decidedly favorable. The French government is more reserved in its comments but seems to lie willing to accept tho terms, subject to conlinnation of tiie right. oT the Allies to enforce the penalties claimed by France and Belgium under the Versailles Treaty in the event of default. The Reparations Commission, which is composed of one member rcnresoiiliug each of the Allied governments, lias adopted the recommendations by unanimous action, ami finally, the German government. I Inis signified its readiness In accept ilie principal terms, subject to discussion over some ol the conditions not fully determined in the Report, hi all countries is manifested a large degree of confidence that the Report has done much to clarify the problem and advance it toward solution. The doubts most often expressed about the success of tins ell or t at ,-ct l lenient have related to acceptance by Germany. but to none ol tin* countries involved is a definite settlement more imfoi taut than to Germany. There is no lane for prnspeiity in Germany, or even lor escape from worse disorders than nine been experienced without a. .settlement of the Reparations question, and nowhere else* is this known so well as in Germany. There is no real basis lor doubt that tilt* German government desires to clear up the controversy. The strength of tm* Report is ill the fact that the ("o.U'mittcc evidently has made an honest effort to deal with the real difficulties. It lias discussed them so luridly maud convincingly that none of them can In* ignored in any future conferences that may l»> required. In adopting the recommendations the* Got * ernmeiits presumably i.immit themselves to the general policy which the Committee has clearly authorised, and may be deemed tairlv bound to have regard for it in dealing with the matters of detail that remain to he settled. There are many of these, some of them of great importance, and unless the negotiations over them are conducted on all sides with a sincere purpose to cany out the general scheme there will lie controversies without end. and the whole plan may become a failure. The truth is that there are too many elements of uncertainty in the conditions to allow ol definite determination in advance upon all the questions .involved. Tliere must be some allowance for adjustment and bn the exercise of judgment in the application of any plan dealing with such indeterminate Jailors over a long ] cried in the future. And yet since the plan involves a foreign loan, it is obviously necessary that the settlement shall lie so definite mil minding that there will be no danger of the agreement breaking down. anil the situation lapsing into a state of chaos. One of the most important of these ‘'details." if it may be called a detail, is (lie question, for how many years shall the payments continue ! J Tho Committee did not consider that it bail been asked to determine the sum total of the payments. It has dealt with the ability of Germany to make annual payments out of income, and tiie ability to make such payments over a peiioil of years, be it ten or thirty, for a country of growing industrial strength, implies ability to go on doing so indefinitely. TTow long the payments shall continue, therefore. depends upon other oonsidcrations than more ability to pay. and the Committee bad net been invited to deal with them. Its task was not that of general arbitration. Obviously the question how long the payments si.all continue, or what the total sum .shall bo. is one upon which an agreement should bo reached. Tliere are conditions in the plan and in the Ixmdon agreement which suggest a natural limit for the term of payments.