New Reparation Plan

Sun (Auckland), Volume III, Issue 677, 31 May 1929, Page 9

New Reparation Plan

ANNUITIES AGREED ON AT LAST FINAL SETTLEMENT LIKELY (United I*.A.—By Telegraph — Copyright) (Australian and A’.Z. Press Association) (United Service) Reed. 11.34 a.m. PARIS, Thursday. The chief German delegate to the Reparation Conference, Dr. Schacht, is reported to be in need of rest. He left Paris for Versailles on Tuesday. Since then Dr; Kastl, director of the reparation department of the Ministry of Finance, has continued the negotiations with the Allies’ experts. He confirmed an agreement reached last evening on the subject of annuities at a figure round about one which will permit the creditor nations to recover the minimum of their requirements. Dr. Kastl dined with Dr. Schacht and secured his assent to the arrangement. It is expected that other matters at issue will now be speedily settled and an agreement attained. Germany, according to last night’s agreement, pays the balance of the Dawes plan annuity, 1,200,000,000 marks, between April 1 and September 1, and thereafter 742,000,000 marks between September 1, 1929, and April 1, 1930, when the first complete ‘‘Young Year” begins. The scale of annuities will increase progressively from 1,707,000,000 marks in the first year, namely, 1930, to 2,100,000,000 in 1940, after which it rises steadily to 2,400,000,000 in the 37th year, the average for all annuities being 2,050,000,000. There are roughly 20 marks to the £l.

TERMS OF COMPROMISE

BRITISH TROOPS TO LEAVE RHINELAND (Australian and N.Z. Press Association) PARIS, Thursday. The compromise on reparation is still based on an annuity of £102,500,000, but the time clauses have been reshuffled to prevent overlapping with the Dawes and Young Plans. The latter payments would not begin until September 1 and would continue for 36 \ years. This would give Germany a small gain, namely, the difference between the half year’s Dawes and Young liabilities. It is understood that Britain intimated that if a settlement be reached her troops will quit the Rhineland on September 1. It remains to be seen whether France will agree to do the same. However, it is significant that there is well-informed talk to the effect that there are to be no German payments for the expenses of the armies of occupation after January 1, 1930. A message from Berlin says some of the newspapers there complain that Germany has conceded everything and the Allies nothing. However, the tendency is to welcome the solution, even though it has been dictated by political pressure.