Settlement of Reparations

Hokitika Guardian, 11 July 1932, Page 5

Settlement of Reparations

AGREEMENT REACHED AT LAUSANNE

GERMANY TO PAY 146 MILLIONS

( WIDESPREAD SATISFACTION EXPRESSED

• ■ :)' . io’ng <• (United Pre§s Association —By Electric Jp', eg;;apii—Copyright.}

RUGBY, July 8. ' A settlement of the Reparations problem, .the existence of wnicli has been one of the chief disturbing factors in the political and economic recovery of Europe since the war, was reached, at Lausanne to-day. News was , received here with in*tense satisfaction,' particularly in view of. the .prominent part taken by the British Prime Minister in the prolonged negotiations of /the past few days. : '

Belgium, Britain,, Germany, France and Italy will prepare a 'scheme to heip Austria as a step towai ds the reconstruction of eastern and southeastern Europe, #

The execution of payments on account of the Bulgarian and Hungarian reparations will be reserved until December loth.

A committee will report Gn grain prices and transfer difficulties, whicfl are cognate problems to the organising of a committee for European Union. 1 The League of Nations convenes a World Economic and Financial Conference at a> place to be fixed.

The terms of the final settlement are not yet officially disclosed, but according to the Press ''reports, the agreement provides for a definite moratorium for threp years, and the suppression of all reparation payments by Germany, ' Their place wi.l bo taken by a final restoration payment by Germany when prosperity returns,.of three thousand million, marks, plus charges, to be guaranteed by 5 per ; cent bonds to be issued .at, 90. It is stated that the redemption period of the bonds and other-sinqidehtal matters will be the subject'' of discussion this evening, when the plenary session of the Reparations Con' erenbe will ho held, and that at • .the final plenary session to-morrow the signatures to the agreement will be affixed. ; , Athough the issue wa s in doubt until the end, a more favourable atmosphere was detected when. the chief French and German delegates met at Mr MacDonald’s 'hotel, this morning, to resume the negotiations which had continued far into ; the night. Chancellor Von Papen was in communication with liis Cabinet • colleagues at Berlin, while the conversations were in progress, during the forenoon, and thereafter rapid progress, was made. Shortly after luncheon, M. Herriot was able to inform the waiting journalists that an agreement had been reached.

A commission of experts, to which American representatives will be invited, will study the Conference's financial and economic problems.

PROVISIONS OF THE TREATY.

END OF REPARATIONS.

LAUSANNE, July 8

The Treaty of .Lausanne, which will be signed and formally made known on- Saturday forenoon at the conference’s closing session, opens with a preamble recalling the decision of January 13th, to convene the conference with’ a view to settling reparations as well as other economic problems. ;

The preamble is followed by five annexes : ’ «

The first contains the text of the, new reparations settlement, superseding the Young Plan. The second deals with certain financial details, such as release of the so-called securities provided for by the Young Plan. The third consists of a preliminary agreement on Eastern European reparations, providing for a moratorium till December 15th, and for the appointment of'a committee, whose task will be to draw up a final'settlement in line with the Lausanne reparations accord.

SIGNING OF CbNVENTION. A NEW PAGE IN HISTORY,

The fourth annex defines the principles of economic co-dperation in' Central and Eastern Europe, with special reference to preferential tariffs to be granted -to the Danubian States.

A LATJSANNE, July 9. ' To the accompaniment of whirring film cameras, the’Sfelbgates sighed the ’ Convention. ’ Mr MacDonald, ns President, was the first to advance to the horseshoe table. He was followed by the representatives of the other countries in alphabetical order. Therecame the Dominions’ delegates, 'vicluding Sir G. Ryrie ’and* Sir T. AVilf ord., . - _ ' ' Captan Von Payen. and Herr Neuyath were the last to sign, \ Sir J. Simon read a statement extending the Moratorium until the Treaty has, been ratified; Mr MacDonald, addressing the assembly; said: “We have writteni « new page in history. Lausanne is noc the last chapter of an old hook, but it is the first chapter of a new one. The world’s wealth lies in the free interchange of trade, and anything interfering therewith should be removed.” He said Germany would henceforth not be required to pay and to receive nothing in return, but would join with the other Powers in the task.of bringing back prosperity to the world.:" Europe could not exist alone. The agreements signed at Lausanne must have a response elsewhere. , .

The fifth outlines a programme for the forthcoming World Economic Conference.

The political declaration, which forms the appendix of the .treaty, confines itself to some rather hassy generalities, stating essentially that the signatory 'Powers hold the work of tsa Lausanne Conference to be insufficient 'in itself to bring about lasting peace, although this work undoubtedly is of the utmost significance, and commands great sacrifices form all parties.

In order to consolidate the work it will be necessary to extend the peace to the political as well as the economic spheres, sc that . all nations sohuld henceforth abstain from having-, recourse to arms or force in any form. The technical deliberations of the conference were brought to a close .on Friday night, when, at 10.30,-the delegations of the eighteen Powers represented at Lausanne assembled at the Hotel Beau Ravage' for the plenary meeting, in the course of which the text of the Lausanne Treaty was submitted and endorsed without debate.

In regard to the first annex, dealing with reparation, Chancellor Von Papen requested the Chairman (Mr MacDonald) to be, inTormal concerning t-*« time limit to be set for. ratification and the putting of the agreement into force. Mr MacDonald stated that a new conference would have to be convened in the near future, in order to clear up all technicalfmatters left in. doubt. • •

TRIBUTE TO MR MACDONALD

SATISFACTION OF FRENCH PRESS

LAUSANNE, July 8

M. Herriot attributed the success ot the conference to Mr sMacDonlad’s influence. He said that there was a new t spirit in the world to-day. It would, replace violence with reason. This; Conference had prepared a basis for 1 - European reconstruction., ■ ; : i ; ‘j Mr N. Chamberlain said he agreed j

PAYMENT BY GERMANY

£146,000,000 IN 37 YEARS

the world was on the threshold of happier times. The Italian and Belgian delegates expressed satisfaction. j J The Frenbh Press, as a whole, expresses lively satisfaction at the agree- j ment. I

LAUSANNE, July 10. The final payment by Germany is to he 146 millions (3000 million marks). It is to be paid by instalments over 87 years. Payment will be made in the form of a bonds issue to he deposited with the Bank for International Settlements ft Basle, the bonds to bo placed on the market after the lapse of three years at 90 per cent, of .their face value, thus making the total net amount payable bv, y> Germany 2,700,000,000 marks (or £1.32,000,000). This amount includes the Yoipjg Plan annuity, payment of which wnsyds,erred by the Hoover Moratorium, hut excludes .mixed claims —about 40,000,000 marks yearly—as well as the sum duo under the special agreement ton marie revaluat’on to Belgium—about 22,000,000 marks.

All newspapers of the Centre and the Left are showering laurels on M. Herriot,

The newspapers of the Right; are somewhat bitter, "... "if The “Echo dcrTaris » says’:— r f 'Tt is illogical that Britain should have obtained an'" reparations, and that France’s debts' to Britain ’should not have received' the same treatment as the Reparations'.”

GERMAN- BONDS ISSUE

LAUSANNE, July 8. The resolutions cover Germany’s provision for bonds to a total of 150 noilioii sterling, to he issuable not helrrtj three years, when markets permit, at ninety, bearing five ner cent interest, with one per/cent sinking fend. The bonds will be cancelled if they cannot he issued fifteen years from the dates of ratification. The. Bank of International. Settlements will hold and devote them to a fund for the reconstruction of Europe.

VON PAiPEN’S SPEECH

GERMANY'S HAPPY RELEASE

LAUSANNE, Jn’v 8. 'Captain Franz Von Papen (German. Chancellor) emphasised t.h« importance’ of the conference proceedings to r manv. and consequently to Europe. He added that a durable success depended on the abolition of the tariff barriers

and on a favourable outcome to the coming Economic Conference Germany had made, the greatest sacrifice. Captain Von Papen, in a broadcast speech from Lausanne to the German nation on Friday evening, was able .to announce the glad tidings that reparation payments amounting to more than 33,000,000,000 marks under the Young Plan, were now definitely wiped out, and that as from July 1, Germany would no longer be paying tribute in any >shnp e -or form. This meant, so -’he Chancellor stressed, the most decisive step yet taken towards the liquidation of the past ano the restoration of world confidence. It also meant the possibility of -lie reestablishment of German credit abroad, and the restoration of Germany’s full economic and financial sovereignty, including the return to the Keich of unimpaired control of German railways as well as ahe Reiehsbank.

For her release from the reparations burden Germany had agreed, said the . Chancellor, to pay, under 'certain conditions expressly .safeguarding German ■economic interests, a total sum of 3,000,0(10,000 marks, representing the amount respited under the Hoover Moratorium, as well as a contribution to European reconstruction. Captain Von Papen concluded by saying that the questions of war-guilt and equal treatment had been thoroughly discussed, point by point, by the statement at Lausanne, and had been brought nearer solution. Even if eome nations still hesitated to recognise Germany’s just claims, the German standpoint in these matters W been definitely made cßar, and the question had' been raised before the whole woyld) The Reich Government would good car 6 to make u r o of. the liberty of foreign political action acquired by the Lausanne' Treaty .in order, energetically to propogate a solution of these problems in the near future.

“The‘complete removal of the reparations restores Germany’s independence in ,the economic and financial sphere. The agreement abolishes all the engagements' outstanding from the Young Plan, and gives German credit a new foundation, enabling a reconstruction of her economic' .structure. Germany is now in a position' to struggle for political freedom.”

WHAT ENGLISH PRESS SAYS

“BEST NEWS SINCE ARMISTICE.”

LONDON, July 9

“The Times” says “Th e first part of the war debts question is solved. A poison has been .extracted from the economic system of Europe. Germany has been relieved of the dead weight of her Annuities, ’ which were payable for another half century, while the Allies must earn, by increased tradethe .sums that they formerly received £rom hier. There are many obstacles to the flow of commodities that have still to be removed, but a beginning has been made. It is possible to hope that, in later years, the movement, when the process of economic deterioration ended and rehabilitation .began, will be counted from the ten day period beginning with the British loan conversion; scheme, and ended with the abolition of the European Wtfr debt payments. “The Daily Herald” (Labour) says:— “The Agreement is the best news since the armistice, thanks largely to the bankers, who were / realists, and who recognised that a failure would further slow down the feeble pulse of . world trade.

The “Daily Express” says :—Since the Balfour Note, Britain has paid one hundred and thirty-four millions •to America more than she has received from Germany. This should be remembered. It iis our part of to-day's agreement. It now depends on America to lift the Lausanne Agreement ■from being a scrap paper' 'to a reality.” \ The “News Chronicle” says: “The agreement is the turning point of the long and dismal post-war years, and a .good omen for the international conferences to follow.” The “Morning Post” says: “Germany may well congratulate herself on the settlement, but her creditors may be pardoned if they view it in a different light. They henceforth will receive lathing, hut are .left with their American liabilities I intact, amounting in the case of Britain to thirty-eight millions sterling annually, and to France to twenty-five millions sterling annually.” The “Daiiy News-Mail . and “Chronicle” laid the Lausanne Pact as a great achievement of great hope. The latter compliments M, Herriot and Captain Von Papen rising to the height of the occasion, a.s patriots and citizens of the world. The heartening news was immediately communicated to the Commons by Mr Thomas, who interrupted the Irish debate, to make the announcement that had first been conveyed to the Government in a telephone message from the Prime Minister at Lausanne.' Intense enthusiasm -prevailed. Mr Neville Chamberlain is leaving Lausanne to-night, and will arrive at London to-morrow afternoon. The il>rime Minister is expected to reach London on .Sunday alTcrnoon.

U.S. ATTITUDE UNCHANGED,

WASHINGTON, July 9

The U.S. State Dencrtment announced to-day t’ -t there was no 'V’.nge in the attitude of the United .States on the question of the war rlcht-s from the views outlined by President Hoover last .Tune, when lie su'd that lie did not approve of cancellation, hut that further temporary adjustments would be necessary

A resolution to request Mr Hoover to inform the U.S. Senate- whether there is any foundation for reports

that the United States lias expressed to foreign nations a willingness to reduce their debts, and, if authority, was introduced‘ ‘‘in ' the Senate to-day by Senator K. Df'-'Mc-Kellar • the Democrat, of Tennessee. The U-.S.A. Senate session was'marked to-day by a debate generally criticising the European nations for their failure to accept, the Hoover-arm amen t proposal. There was also- the cabling -of Senator Mc-Kellar’s resolution asking if the Government had inti mat. d to European ’.Powers any willingness to reduce the war debts to U.S.A. A resolution was offered by Senator Gore authorising the State Department to determine whether the Powe. s wliib have r.ceiyed the former German Gel on hi .possessions, or who own “Islands in American waters,” would be prepared' to transfer these islands to the United States in, lieu .of the payment of tlieif debts. >

N.Z. CONGRATULATORY CABLE

AUCKLAND, July The Governor-General has sent the following cable to Mr Ramsay MacDonald : The Government and people, of New Zealand join with me in heartiest ■congratulations on Lausanne settlement and in consummate admiral” tion of your own unflagging perseverance ” • ...... _____ i: '* ■ ‘t"

SOME POWERS NOT SIGNING

LAUSANNE, July 8.

The Roumanian, Jugoslavian -and; Polish; representatives, cannot initial" the documents, however, because their Governments havo not yet seen them.

The delegates of Jugoslavia ' Greece, Jtoumania and ..Portugal announced that they were unable to sign, the treaty without having first consulted their* respective Governments.

MUSSOLINI’*} JUSTIFICATION

ROME, July 8., n

Widespread satisfaction is felt ip Italy concerning the Lausanne Agreement, which is considered to be a justification of Signor Mussolini’s ten year 'campaign for the obliterating of the war’s tragic accountancy. , ;.

RATIFICATION QUESTION,; ~•

LAUSANNE, July, 8.

All the members at. to-night's.;plen-ary session attended in the evening,., Th'e invitipg Powers unanimously adopted the agreement. ♦ .. Mr R. MacDonald/informed Captain Von Papen that‘if the Parliaments of the Powers concerned did not ,Ratify the Agreement' a fresh conference would proceed to .further action.; ; .....

ORIGINAL DEBT REDUCED;

L&USANNE,' July "

If Germany had m# the oration* ; bill was ,|pmuj|itqd.. J .rip 1921 * she would Jiaye paid 12,500 millions sterling. Thy present final liquidation. means that she will pay 2,845 millions, according to German calculations ; but the Reparations Commission says that the actual amount is only 1,160. millions'. Tills discrepancy,is due to varying values being placed on German payments in kip-d. -

A BASIS FOR PEACE.

LAUSANNE, July 8,

The agreement declares that the signatories do not claim, that the cessation of the reparations will alone ensure peace, but they hope that all of these significant aims, so arduously attained, will be understood and appreciated by all of the pacific elements of the world. It will be the prelude to fresh achievements, whcli will be the more readily won if the nations rally to this new effort in the cause of real peace, which can only be complete if applied economically and politically, rejecting all resort to arms and violence.

AVAR GUILT ISSUE REMAINS

BERLIN, July 8

The Nationalists resent the abandonment of Germany’s demands for the formal elimination of the war guilt charge. Thev claim this has implications concerning colonial misgovern-, ment and the 'acknowledgment of Germany’s right to equality-, in armaments.

SETTLEMENT; ENTHUSIASM

(Received this day at 8 a.ra.)

LONDON, July 10.

Enthusiasm over the Lausanne settlement is sobered by the uncertainty of America’s attitude and also the disappointing German reaction. Britain is due to, pay America twenty-five m'llions on December 15th. In this con-, neetion, the “'Sunday Express” declared that Republicans and Democrats are both afraid of war, and denies it is. becoming an election is ue. If says that British opinion demands satisfaction regarding her att.tuelo before the presidential election. Sir Austen Chamberlain has returned. He stated that failing complete cancellation, no better settlement'could have been devised. He honed America would share the Experts Committee work arising from Lausanne, which may have no direct hearing on Ottawa, but must have a general encouraging effect. “At nnv rate, I go there in full confidence.” A front -velcomn nwn : ts Mr MacDonald when arriving in London today.

FEARS HELD IN GERMANY

BERLIN, July 10. The .settl / "vinrt is already' menaced by German Nationalist elements. 1 Unexpectedly, virulent opposition- was

displayed by Hitler’s, Nazis and Hugemberg’s Nationalists, which has strong Catholic parties. More moderate criticism raise doubts nr, to ratification- of the treaty. The official' organ of the Hitlerites declares the spirit of Versailles triumphed. It is generally IVIt that the (settlement has reduced Von Papen’s chances of election. There is, however, a brighter side to the picture, as (Liberals and Socialists approve' of the settlement as involving a reduction of political obligations to under one tenth of the Young Plan. President Hindenburg is reportedly satisfied.