REVIEW OF SITUATION

New Zealand Times, Volume XLIV, Issue 10276, 10 May 1919, Page 7

REVIEW OF SITUATION

BY NEW ZEALAND PRIME MINISTER. LONDON, May . Official.—Mr Massey says: “It may be very easy to find flaws and imperfections in the Treaty, but these doubtless will bt? more evident later on with out emphasising them now. The Ooun eil of (treat Powers has had during the past few months a most difficult task, of which a great deal has been well

done, but it has to be admitted that there hove been many indications ol lack of that co-ordination which is essential to, success. “Now that the terms have been presented unity is more essential than ever to counteract tue weakness of the Treaty. Without such- inter-Allied unity tnere cannot bo the peace the world has hoped for. The greatest danger to a satisfactory outcome is the number of experiments embodied in the Treaty. The League of Nations, which is excellent in theory and aims, is still with.: out practical machinery. Moreover, it must have time before its power can bo relied upon even to make wars less frequent than in the past. Hi© Labour Convention is also well based on high principles, and I hope It may do all that is expected in bringing- up nations backward in labour cpnditiohs. The systems as regards mandates > and economic terras also are experiments on which much depends. Results from the mandat© system will be closely watched all over the world. Many proposals look simple, on paper, but when put into practice 1h conditions widely varied throughout the world may nut, achieve the results desired. “Probably the greatest weakness in the Treaty is the provision regal ding the guarantees lor its execution. The proposal that the Allies should occupy districts west ot the Rhino tor fifteen years does not give France the measure of permanent security desired. What wTif happen after fifteen years even if conditions have been complied with r* There is a very prevalent opinion in Franc© that Germany will come , again, enough not in the present generation, and . military experts urge that the only way to make France sate is to give her defensive control on the west bank of the Rhine. This in itself is a serious problem. ' “As regards the various adjustments of past grievances and, unjust condi- ; lions there seem to be too many com-:■ missions, making lor complexity of control of European frontiers, ports, ■ rivers and railways, and possibly causing the frequent conflict ot varied nationalities and jealousies. _ "Xfie dealing with reparation is good as far as it goes, though dangerously indefinite. It is generally understood that this part of the Treaty gave the Council and its advisers more trouble than anything else owing to wide diversity- of opinion. ' If the Germans accept the terms Britain and the Dominions will get something hack, out their proportion is verv hard to estimate. They will certainly not get more than 25 per cent., spread over about thirty ; years, and perhaps much less than that. It mVy be said now that respecting the finance tenderness to Germany, a very marked argument was that if . the Allies' demands were too'high they would probably get nothing, and that Germany would ‘Bdlsheviso’ rather than pay. The die is now cast, and if one should judge by tlje arrogant bearing of- the Hun delegates -to-day they will give trouble—plenty: of it, indeed, - before peace is finally declared. ‘ ‘The most vita* ariuTatisfying feature of the Treaty are the military, naval and aerial terms, which were fixed by practical experts who knew their enemy and what was required, and~hit directly .at Prussian militarism,: which for many years to come has been smashed. This in itself is a great result, and counterbalances many minor defects in other directions.

1 “These terms are in striking contrast to the reparation and restitution proposals, which give too much scope for evasion. No aggregate sum has (been .fixed, and Germany take ■ advantage of tho elasticity ol thedetails.

“The clauses dealing with enemy crimes and enforcement of penalties for atrocities and breaches of the laws of war and humanity are weak compared with the Commission’s recommendations, and afford the ex-Kaiser a wide loophole of escape - through technicalities - and the weakness of the Council’s clauses due to the conflict 0f,., legal opinion respecting the sacrosanct position of exalted heads of States.'

"In conclusion, it may- be. said the chief cause of flaw in the Treaty has been the effort to adjust all sorts of Allied difficulties and differences before securing without delay a definite and firm' peace with Germany and adequate reparation. The world' will welcome and endorse the genuine effort of the Allied Peace Conference to secure the restoration of Belgium, Northern France, arid the devastated regions' swept by Prussian warfare, and tho opportunity now give nto new States emancipated by Allied effort from tyranny.” Germany further binds herself to repay all sums borrowed by Belgium from the Allies as the result of Germany’s violation of the Treaty of 1839, up to November 11th. 1918, and for this purpose will issue at once and hand over to the Reparation Commission o per cent, gold bonds falling duo in 1926. The total obligation of Germany to pay, as defined in the category of damages, is to be determined and notified to her after a fair hearing not later than May Ist, 1921, by an Inter-Allied Reparation Commission. At the samo time a schedule of payments to discharge the obligation yithin thirty years shall be presented. These payments are subject to postponement in certain contingencies. Germany irrevocably recognises the full authority of this Commission, and agrees to supply It with all necessary information, and to pass legislation to give effect to its findings. She further agrees to restore to tho Allies cash and certain articles which can bo identified.

As nn immediate step restoration, Germany shall pay within two years' £1,000,000,000 in either gold, goods, ships, or other specific forms of' payment, this sum being included in and not additional to the first thousand million bond issue referred to below, with the understanding that certain expenses, such as those of the armies ot occupation, and payments for food and raw materials, may ho deducted at the discretion of the Allies. y ' In periodically estimating Germany’s capacity to pay, the Reparation Commission shall examine the German system of taxation, first to the end that sums' for reparation which, Germany is required to pay shall become a charge upon all her revenues prior to that for the service or discharge of any domestic loan; and secondly, so as to satisfy itself that in general the German scheme of taxation is fully as heavy proportionally as that of any of 'the Powers represented on the Commission. The measures which Allied and associated Powers shall have the right to take in case of voluntary default by Germany, and which Germany agrees not to regard as acts of war, may include economical and financial prohibitions and reprisals, and in' general snob other measures as the respective Governments may determine to he necessary in the circumstances. The Commission shall consist of one representative of each of the United States, Great Britain, Franca, Italy, and Belgium, a representative of Serbia or Japan taking the place of_ the Belgian representative when the interests of either country are particularly affected, with all the other Allied Powers entitled, when their claims are under consideration, to the right of' representation. without Totinxr-ruviw*,. It .shall.

-permit Germany to give evidence regarding her capacity to pay, and shall assure her of a 311st opportunity to' beheard. It shall’ make its 'lifeadqua'rters ’ in Paris, and shall establish its own procedure and peTsduhell 'lt kbill Mv« o-oneral control of ,Uic, whole, reparation problem, and shall .become . the executive agency of the Allies for receiving, holding, selling, and distributing reparation payments..., . A majority vote shall prevail, except that unanimity is required on questions involving the sovereignty of any of the Allies, the cancellation of all or. part of Germany's oblgations, the time and manner of soiling; 'ana* negotiating bonds issued by Germany, any postponement between 11121 1928 for a perio4 x .of tn,Of.q ‘.th'ag sJir(?e. years, the appjic.a.t.ipij ~o.f, .a, .diftetßltt.. method of mea?ariiig.,damage. than,, in a similar former case, and the jjitqipretation of the provisions. Withdrawal from representation on, the Commission is permitted upon twelve months’, potico. .The ..Commission may require Germany-to give fromtime to time, by. way of guarantee, issues of bonds or otlier obligations ■ -to cover such claims as are not otherwise satisfied. in this connection, and on account of the total amount <jf. yiq, clgipiJ, bond issues are.* presently to ie .required _ol. Germany .in acknowledgment, qf, , r its,, debt as follows: —One thousand million pounds sterling, payable, not,later . than May Ist, 1921, without interest; two thousand ,i£yiion„ ppiis(}E»-..bearing 2J per cent, interest, between 1921 and 1926, and thereafter o per cent, interest, with 1 per—cent.-sinking fund, • payment beginning in 1926; and an undertaking to , deliver - bonds to the additional amount of two thousand millions, bearing interest at 5 per cent., under terns -to*W fixed by' thtfCommissiou. The interest on Germany’s debt is to be 5 per cent 1/ imless otherwise determined .byatha :Commission in future, and payments that are not made in gold may bo accepted by the Commission in the'form'bf' p'fo-‘ parties, commodities, businesses, rights, concessions, etc. Certificates, of. jaarehuiaLintercstj—re—presenting either, -bonds ,or goods delivered by Germany, may be issued by the Commission to an interested Power.

; As the bonds are distributed and pass from the control of the Conunission an amount of Germany’s ■ debt> equivalent to their par value is-to -ber-considered as liquidated.

!'IL

The German Government recognises the right of the Allies to the replacement, ton for ton and class for class, of all merchant ships and lost, or damaged owing to . jUp. war, landagrees to cede to the Allies all. German merchant ships; of-n1600.->ton«( (grassland upwards, one-half of her- ships, between■ IKK) and 1000 tons gross, and one-quar-ter of her steam trawlers and 1 other ashing boats. These ships are to be' delivered’■within two months to the’Reparation Commission, together with documents of title, as evidence of the transfer of the, ships from encumbrance. t ■ As an additional jmit. the German Government further agrees to build merchant’slups for the account of the Allies to an amount not exceeding 200,000 tons gross per' annum during the next five years. All ships used for inland, navigation’ takefi 1 by Gelmany from the Allies are to be restored within two months/ tho' ambiiht ©{“loss' not covered by such restitution to be imade np by the cession of the German ’river fleet up to 20 per cent, thereof, DEVASTATED AREAS. Germany undertakes to devote her economic resources directly to the, physical restoration of the invaded areas. The Reparation Commission, ig authorised to require Gefidany to- replace .destroyed articles by the delivery of animals. machinery, etc., existing in Gerniany, and to manufacture materials retired for recoastrgcjbion with due consideration . for. Germany-s essential domestic, COAL? ETC. • Germany is to deliver annually for ten years to Franco coal equivalent to the difference bptw:qan -the annual-pre-war output of .tha.NortL and. Pax- do Calais mines and the annual production during about ten years.;-..Germany: is further to give options overmen y.eaPS for the delivery of seven million tons of coal per year to Franco in' additioK .to ' the above, of eight million to Belgium, and of an amount rising from 44 million tons in 1919 to 1920 to 81 million tons in 1923 to 1924, to Italy, at prices to be fixed fas. proscribed m the Treaty. Coke, may—be 'taken in' place of coal in the .ratio, pf three tons, to four. Provision is also' tb' be" made for the delivery_to France ovef -three years of benzoin, I ’coal-tar, and sulphite of ammonia. The Commission has powers to postpone or anriul tfrn.nhoTn-dftr. liveries should They interfere with tho industrial requirements of Germany. ..

DYESTUFFS AND OHEMCAL DRUGS.„

Germany accords' an option Commission on dyestuffs and chemical drugs, including tju&iine('up cent, of the total stock'in .Germany at the time the Treaty' ponies ,into force, and » similar 'option during each six months to the end of 1924 up to 25 per cent, of the previous six months’ output,

GABLES* » T nr* - !

Germany renounces all *tftlcC-ttf Specified cables, the value'pf 'Sfith; r hV■tfere ‘ privately owned being credited to her: against the reparations indebtedness. SPECIAL PROVISIONS. As reparation for the destruction of the library.of LouvainpdJepmany-is to" hand over manuscriptsr early ' printed'; books, prints, etc.,-to this equivalent of those destroyed.: ..theabove,* Germany .is. to--hand- over -- to : Belgium the longing to the .the-Adora-tion of the Lamb, by Hubert and’Jam Van Eyck, the centre of which is now in the Church Have,, at Ghent ; and the wings, now at Berlin and Munich, of the altar-piece of “The Last Supper,” by Birk Bouts.'the'centre of. which belongs to the. ChprqK of. St, Peter at Louvain, Germany has to restore within six months the Koran of Caliph Othman. formerly at Mpdina,, to the King of thg'Hedjaz, ¥nd "skull of the Sultan Mkwawa, formerly in Gcr-.. man East Africa, to His Majesty's Government; 'The*German’Government is also to. restore,, tptjio French Government certain papers, apd to restore the IJrepch fl&g\ r taken during the war of 18TO-71.