The Daily News. TUESDAY, OCTOBER 7, 1919. THE WAR INDEMNITY.

Taranaki Daily News, 7 October 1919, Page 4

The Daily News. TUESDAY, OCTOBER 7, 1919. THE WAR INDEMNITY.

There may Ije some citieens of the Dominion who have wondered why there has been such an ominous silence regarding the indemnity which, under the Peace Treaty, Germany has to pay to New Zealand. Beyond holding out a prospect of the Dominion obtaining—at some unknown date—ten or twelve millions from Germany by way of payment for pensions and separation allowances, the Premier has thrown no light on this somewhat obscure subject, although he should have been fully acquainted with the full text of the treaty and of the various protocols, agreements and explanations by which it is supplemented. Prom the official papers issued by the Imperial Government quite a new light is cast on this reparation question as it affects New Zealand. According to the summary of the treaty as cabled to the Dominion, Germany was to pay the cost of pensions and separation allowances under the clause relating to damage done to civilians and to their property. The papers issued by the British Government show that it is laid down, among other provisions that Germany shall pay pensions and seperation allowances, but it appears that a claim will not rest for actual disbursements under these heads, but only for a sum which would provide pensions and separation allowances on the French scale, which is infinitely below that adopted in New Zealand. The treaty is quite definite in its phraseology. It throws upon Germany the capitalised cost of pensions "at the date of the coming into force of the present treaty on the basis of the scales in force in Prance at such date," and it lays down that separation allowances shall be calculated year by year "on the basis of the average scale for such payments in force in France during that year." The capitalised value of the New Zealand pensions has been estimated at £12,000,000, but on the French scale it would be very much lower. It would seem, therefore, that, at the best, the Dominion will only receive ten or twelve millions as her share of the indemnity, and that the separation allowances must lie counted out. Probably New Zealand is not building upon the receipt, of German money, and this is distinctly a wise course to take. "Why the cost of pensions to the Dominion should have been calculated on the basis of the scales in force in Prance is a. matter which Mr. Massey might well be asked to ex-1 plain, and it may cause some surprise that he has been silent on a, ! AoM that is o£ suck importance

.to the country. Tlie question of how much Germany can pay in the aggregate has been left for the Reparation Commission to fix before May 1, 1921, unless Germany offers a lump sum that is accepted within four months of the signing of the treaty—a step the wily Teuton is not likely to take—so that the Dominion's prospect of receiving anything at all from Germany is dependent on her capacity to pay. The only specific sums mentioned in the treaty as recoverable from Germany are £.1,000,000,000 before May, 1921, £2,000,000,000 six or seven years hence, and £2,000,000,000 at a later date. They are apparently set out as an earnest, of the Allies' intention of recovering all that Germany can be made to pay, and the first instalment is intended to facilitate the immediate restoration of Belgium and France. Prior claims on it will be the expenses of the armies of occupation, and the cost of food and raw material supplied to Germany. The whole of Germany's liability is to be discharged within 30 years, and as Belgium and France have an indisputable right to the earlier pay- | ments it must be assumed that until they are satisfied New Zealand will receive nothing except the small amount due for the maintenance of her troops in Germany. Under the circumstances it would be the height of folly to count on German money affording any relief to our Avar debt or taxation for some years to come—if at. all. Hence the imperative necessity for a vigorous policy of greater production and thorough development of resources, and for this a comprehensive programme of public works is essential. If any portion lof the indemnity does come to hand by a stroke of fortune it can he put to good use, but the prospect is so uncertain that we must act as if it, did not exist. The Government is fully aware of the country's needs to enable it to meet the heavy financial liabilities, and the people look to the Government to act in the Ml light of that knowledge and thereby stimulate that greater production by which alone the requirements of the future can be met.