REPARATIONS

Hokitika Guardian, 10 June 1929, Page 5

REPARATIONS

, EXPERTS’ REPORT. A- OFFICIAL STATEMENT. (British Official Wireless.) (Received this day at 11.2.5 a.m.) RUGBY, .Tune 9. The full text is now available of the report of the Committee of Experts on Reparations. The main effect of the Coinnutitee’.N work whiieih has been achieved with unanimous agreement is to substitute a definite-fixed liability to cover Germany’s entire obligations of reparations for a determinate scheme launched by the Dawes Conference in 1924. Thereby it is expected that the financial economic and industrial interests throughout the world will benefit. At present, under the Dawes Plan, Germany pays the equivalent of £125,000,090 a year for an indefinite, period. It is important to note that /vliile no jurisdical connection exists between reparations and debts,'the experts have made del'acto relationship between them. They provide that if theuo is any relief in debts during the first 37 years, two thirds of this relief shall profit Germany and one third shall benefit the creditor concerned. During the last 22 years Germany would benefit by the whole relief of each of the first 37 annuities. A sum equal to £33,000,000 is payable wkliout any right of postponement. The Committee recognises this is a conservative amount hut they consider it wiser to underestimate than to run the risk of weakening German credit by fixing it too high. France’s share in this unconditional port ion is £>25,039,009. As (to. tii© major part of the annuity, Germany by giving 90 days’ notice, can in the event of grave economic difficulties suspend it for a period of two years.. The constant rise in annual payments is to reflect the anticipated increase in Germany’s prosperity. The sources of annuities are to be German railways and Budget of the Reich. Experts to maintain the deliveries in kind for a period of 10 years. During the first year their value will lie £27,500.000 but they will decrease progressively to j £15,000,000 in the 10th.. year, when deliveries in kind will cease altogether. Of these

leliveries Great Britain takes 22 per •cut. and France 54 per cent. As to treat Britain’s share in the whole

nnuity, the object of British experts as been first of all to provide year

by year, cover for cover for the American debt leaving over and above this, a constant sum to meet Dominion claims. In the first full year, beginning next - April, Great Britain receives £18,350,300 out of a total annuity of £85,400,000. The largest sum that comes to her is. £22,850,000 in 1940. In the last of 37 years she receives £20,500,000 out of a total of £121,450,000. The net result from. Great Britain’s point of view is that her share is somewhat lower than would come to her on the

existing basis. In regard to an international bank, which is to be established, th© report says: “The bank excludes from its procedure all political influences and business principles and practice intervene to facilitate a settlement of Germalny’s obligations, without in any way qualifying her independent and sole responsibility. The office for Reparation payments and its associated organisations in Berlin, will be retired and Reparation Commission relations with Germany will he terminated. Germany will assume responsibility for raising and transferring the annuities and the bank takes over the work of their receipt and disbursement.