GERMAN REPARATION

Sun (Auckland), Volume III, Issue 721, 22 July 1929, Page 9

GERMAN REPARATION

GERMAN FINANCE SOUND, SAYS GILBERT WARNING OF EXPENDITURE British Official Wireless Reed. 11 a.m. RUGBY, Sunday. Conversations are continuing between the interested Governments as to the place where the conference to discuss the Young reparation plan and Rhineland evacuation is to be held. There seems now to be every hope of an early agreement. The British Ambassador to France, Lord Tyrrel. has informed the French Roreign Minister, M. Aristide Briancl. that Britain agrees to the holding of the reparations conference in a net: tral country. The Agent-General for Reparation Payments, Mr. Parker Gilbert, has issued his interim report for the first nine months of the fifth annuity year ended May 1. It is distinctly optimistic in tone regarding Germany’s position and future economic and financial development. Germauv has made, as previously, punctual payments without interfering with the stability of the German currency. Mr. Gilbert, however, again warns Germany to keep down her expenditure. and to pay from existing revenue. There has been great productivity in the revenues, but a constantly increasing level of expenditure, going even beyond the rising revenues, which has necessitated extensive borrowing, and this has created much tension in Germany’s finances. Mr. Gilbert says he considers that the Owen-Young repayment plan provides an opportunity for the development of a sound financial programme, not merely because of the reduction in annuities, hut because finality would remove the uncertainty as to the extent of Germany’s repatration obligations. Mr. Gilbert is convinced that the budgetary difficulties have thrown no doubt on the essential soundness of the Reichs’ finances. Germany’s exports continue to rise, while the im ports continue to remain below the high level of last year.