GERMANY CANNO PAY

Otaki Mail, 18 August 1922, Page 4

GERMANY CANNO PAY

NOTICE TO ALLIED POWERS. Berlin, Augusi, 16. The Government has addressed Notes 10 the British, French, Italian and Belgian Governments die at rig that, owing -to foreign currency' requirements for the urgently-needed necessaries of iiie and the fall ul lhe mark it is unable to meet, its clearing house payment oi two millions sterling due today. FRANCE SUMMONS SOLDIERS. CABINET CONSIDERS COERCION. Paris, Augusi 16. Ii is staled that .Marshal Foch and General Oegoiute have been summoned to Itamljouill'et in connection with lhe French Cabinet meeting'there. FRENCH PREMIER RETURNS. j ENTHUSIASTIC WELCOME IN PARIS. I Paris, August 16. When M. Poincaire, the French. Pre- i uiier, arrived in Paris un lus return i from ihe Allied Conference, lie receiv- ' eel an uuprecedeatedly enthusiastic; welcome, ihe crowds shouting 'Down ' with tiie Roches," "Make them pay," and "Thanhs lor France." ] FRANCE WILL BREAK TREATY. IF SHE ACTS ALONE, (Received This Day, 11,35 a.m.) London. August 16. British official opinion does not, believe that France will lake independetii actioti precipitately. There are legal difficulties under the Versailles Treaty, and M. Poincaire is a. stickler lor the letter of the law, ; l dull!! the Treaty the matter reverts', io the Reparations Commission, which has already indicated the trend of . their opinion by publishing iiie text ul the proposed resolution.

As in the Allied Conference when M. Poincaire was in a minority ol one, so in the Reparations Commission, France i.- in a minority. According to lhe I fealy the Commission is eiiLiiled to 1 granl a moratorium on a bare majo- ■ rity, and only**\vtiei] it decides that it 01 many wilfully failed to meet, her obligations can France recover complete freedom ol action. Otherwise she would be violating the Versailles li is considered most unlikely the Reparations Commission would declare Germany to be in default. Fur France 10 mi without reference to the 1 '.iimiiiission would he indefensible. 11 i- not thought, therefore, that she would do so, despite M. Poincaire's reported statement that the Government won hi retain their liberty or action whatever' the Reparations Commission or Treaty procedure should be. Another element ui hope lies in Uie op jmism oi M. Theunis, who declares bis conviction that the Allies will meei again soon and the problem he settled satisfactorily.

The Reparations Commission by a majority oi 3 to I, recommended the Allies not to demand any reparation payment from Germany until the end o| Uie year.