REPARATIONS

Hokitika Guardian, 4 July 1932, Page 5

REPARATIONS

CHANCES REMOTE

FOR GENERAL AGREEMENT.

(United Press Association—By Electric iemgraph—Copyright.)

LAUSANNE, July 1

Despite the optimism affected in French and English Conference circles the chances for a' genera] agreement appear to be very remote, i.- the information emanating from French

quarters should prove correct, namely that the scheme envisaged by the five creditor Powers, which is to be communicated to the German delegation on Saturday afternoon, provides lor annual payments by Germany—-after a certain period of respite—of various sufhs totalling from 709,000,000 to 800,000,000 gold marks. It is even proposed that Germany should pay the Yotuig Plan annuities payment of which was deferred Under the Hoover moratorium;

Political observers bei'e, ai‘e inclined to believe that Germany, in view cf her unsettled financial situatioh, is unable to assume such obligations, and that therefore thq German delegation is bound to reject the proposal, which may or may not mean the end of the Lausanne Conference.

THE POSITION OF GERMANY,

IN DISCHARGING LIABILITIES.

RUGBY, July 1.

Mr Neville Chamberlain returned to Lausanne to-day, to resume work or, the Executive Bureau -set up by tile Lausanne Conference, to draft the final • plans for the settlement of the reparations, 1

The Bureau, which has been almost constant session since Wednesday night, met again this morning. Following a visit to Mr MacDonald by the German delegates, Chancelloi Von Papen and Herr Von Kresigh, an agreement was reached that the Reparations payments shall come to an end, and the discussion. is now centering round the composition payment to be made by Germany in final discharge of her Reparation, liabilities. Differences are still outstanding regarding 1 the amount and the circumstances in which this payment will become payable. While a cc-mmittec of seven is endeavoring to settle these points, experts with-the various delegations are studying the methods of marketing bonds to cover the eventual payment. DISCUSSIONS FOR SETTLEMENT. MR-MACDONALD AND GERMANY. * LAUSANNE, July 2, Although the German delegation firmly adheres, to its standpoint that the latest proposals of the ex-AUied Powers (regarding the payment by Germany of several thousand million marks are wholly unacceptable in view of the Reich’s precarious financial position, discussions are nevertheless continued between the German statesmen and Mr Ramsay MacDonald, and it is considered possible that the creditor States may so far modify , the original proposals as to evolve a compromise formula capable of -serving as a basis for further negotiations. In the course of a conversation with Mr MacDonald this afternoon, the German Chancellor, Captain F. von Papen, stressed the numerous obscurities and uncertainties contained in the ex-Allies’ proposals, and pointed out the necessity for the conference to produce definite guarantees for the restoration of confidence.

The first commission sat this afternoon from 2 o’clock to 5, but the German delegation was absent from the meeting. Well-informed circles state that in the course of the meeting Mi MacDonald strongly appealed to the French delegates tovshow themselves as conciliatory as possible, and that as the .result the French .delegation manifested a much more accommodating disposition regarding the figures. It is further stated that the commission succeeded in discovering an alternative and considerably more elastic formula in the question of the so-called security clause respecting European indebtedness to the United States the clause, as originally formulated, threatened to become a stumblingblock. Further discussion of the question was adjourned till to-morrow morning, when the commission / will complete the drawing-up of its report, which will be handed in the afternoon to the German delegation in the form of proposals from the five Powers. At the close o? the commission’s sitting Mr MacDonald declared optimistically that he is hoping an agreement will soon be arrived at, and that it will be possible to bold a final meeting of the conference on Monday or Tuesday. GERMAN OBJECTION'S TO PLAN. REMOVAL OF WAR STIGMA. (Received this day at 9.25 a.ra', LAUSANNE, July 3. Disregarding Sfthbatft.via.il nrincp.es and his doctor’s advice, Mr MacDonald r.noilt Sunday in vigorous attempts tw secure ft settlement It is believed that the German objections to the five-power plan hate been narrowed down to three points. Firstly, the amount of pavrmvM ■ secondlv, the conditions concerning tlic issue of bonds; and thirdly, ft camouflaged safeguarding clause. Tbcv a.l-o | want cancellation of references to war guilt in the Versailles Treaty, arguing

that now that reparations are dead, it is unreasonable to maintain the ,tigma, the removal of which will make settlement almost palatable. The 'German .demands are expected to arouse opposition, but til's wili possibly be advanced for bargaining purposes. The powers! are now discussing Germany’s r.ply. ANGLO-FRENCH ’ AGREEMENT. ■GERMANY EXPECTED TO ACCEPT. LAUSANNE, July 3. Italy Belgium and Japan have accepted the Anglo-French agreement. The items arc to bo submitted to Germany for the find reparations .settlement. Von Papon’s reply is expected to-day. ,Tt is proposed that "he final payment of two hundred millions skill be earmarked not as but Ac ••i.ontribulior . ti> the common fund i’i v European reconstruction.” While Germany is expected to prates* it hat the fi lire is too high, it is be - lieved that she will ultimately accept, as the alternative would be the bred' down of the conference without an agreement, whereupon suspended reparations payments would become immediately due,