GERMANY CAN PAY

Sun (Auckland), Volume 1, Issue 186, 27 October 1927, Page 1

GERMANY CAN PAY

MINISTER ridicules BRITISH FEARS reparations money gf Cable —Press Association. — Copyright. g*cd. 9.5 8 in - BERLIN, Wednesday. IN the Budget Committee of the Reichstag, the Finance Minister, Dr. Kohler, ridiculed the tears that the Government’s financial policy l including the raising of the salaries of officials, jeoparded the payments under the Dawes scheme. He said that the Government, now •s ever, stands by the Dawes scheme, ind was determined to carry it out. London papers «ay it is notable that Dr. Kohler now admits what he had hitherto denied, namely, that Mr . Parker Gilbert, Agent-General for Reparation Payments, had submitted a memorandum to him. However, he jays memoranda are constantly passing and there was no need to publish ihis one. Berlin newspapers, however, continue to insist upon the publication of the teat of the memorandum, though it is known to contain a strong warning against legislation and a loan policy which might interfere with the Dawes payments. In the coming year Germany must pay an indemnity of £125,000,000, of which Britain is entitled to about £27,500,000. This is equal to 5Jd in the pound off the income tax and 4d if all deductions are made, such as the Dominions’ percentage. Britain, therefore, has a direct interest in insisting that the Dawes payments are now jeopardised by large icale borrowing by Germany in conjunction with rising public expenditure. Yet Germany is immediately to increase the salaries of members of her Civil Service by a total of £15,000,000 a year. She also proposes to Increase the education vote by £20,000,000 and a sum of £30,000,000 Is to be used in compensating German colonial residents.—A. and N.Z.