REPARATION CONFERENCE

Hokitika Guardian, 8 January 1930, Page 3

REPARATION CONFERENCE

G ERMA NY’S PAYMENTS. [United Press Association—By Electric Telegraph.—Copyright.] THE HAGUE, Jan. 7. Apart from Austria’s dramatic pronouncement that she cannot pay one penny of Reparations, the principal interest at the Reparations Conference to-day centred on a secret meeting, at Binnenhof between the chief German delegates and the representatives of the principal creditors. No secretaries or experts were present, and no communique was issued, hut it is understood that a frank discussion on half a dozen of the remaining points in connection with the German Reparations occurred. An important question was that of hard cash, as it concerns the date upon which the transfers are to he made by Germany to the International Bank. As her monthly payments will average eight and a half million pounds each, tile loss or gain of interest according to whether the payments are to he made on the first or the 31st. of the month may amount to four millions to five millions annually. Until a compromise is reached this matter is certain to give rise to a most ingenuous controversy.

The other points remaining include the gold value of Germany’s currency, and assurances regarding the security of certain German revenues now mortgaged for reparation purposes.

The problems are so complex that Herr Curtins has specially summoned Dr Sell adit to The Hague. The most difficult question remaining, however, relates to the measure to he taken, in the event of Germany’s future default, and the precise powers of the International Bank. The Germans want an assurance that the Voung Plan implies the moral end of the regime of the sanctions, anu particularly the military sanctions. While ,\l. Briand and M. Tardieu are privately convinced that the sanctions are things of the past, they are unwilling publicly to give any assurance "that might be construed as a renunciation of the Peace Treaty. Since the matter has been raised by the French and German delegates, the Conference will lmve to find a formula. The conversations between M. Tardieu and iierif Curtins have been almost continuous. Herr Curtins is insisting .that the international hankers are strongly opposed to the idea of military sanctions, arguing that the American Bank firms which are undertaking to market German bonds in the United States in conjunction with the Allies’ hanks of - issiiq, will not guarantee the-'suc-cessful sale of the bonds if a military controversy is raised.

The general belief is that the Gerpians will not succeed in having the provisions of the Treaty of Versailles annulled, hut that they may keep the sanctions out of the Protocol.

It was reported that during a lunch with Mr Snowden, M Tardieu (French Premier) suggested that in the event of Germany exercising her rights under the Young Plan to suspend payment, all the machinery provided in the Plan shall he put into operation, and that, in the ’end the Arbitration Committee decides against Germany, the latter shall have the right to bring the matter to the World Court at Hie Hague, but that only after the World Court has decided against Germany, would tTie right imposed by the Sanctions exist. The time occupied in this procedure is estimated at one year.