THE ALLIES.

Taranaki Daily News, 29 January 1921, Page 5

THE ALLIES.

MAKING GERMANY PAY. BRITAIN’S POLICY DECLARED. FRANCE NOT SATISFIED. Bj Telegraph.—Press Assn.—Copyright. Received Jan. 28, 8.5 p.m. Paris, Jan. 28. The morning sitting of the Allies’ Conference was devoted to attempts to smooth out the divergent points revealed in consequence of the speech on Wednesday of M. Doumer (French Minister of Finance), which came a> a surprise, particularly when he advocated the immediate fixing of the indemnity at about a hundred milliards of gold marks, which is about double the amount proposed at the Boulogne Conference. At the meeting this afternoon Mr. Lloyd George defined Britain’s reparation policy. He said it was useless for the Allies to try to extract more than Germany could pay. Nevertheless it was to the interest of Britain, Belgium and France alike to extract the utmost farthing. Though France suffered most in human loss and suffering, Britain carried the largest financial burden, her war costs aggregating £10,000,000.000. The real difficulty arose in determining how to compel Germany to pay. She can easily pay in marks, but the paper money was of little value outside Germany

‘ The only way she can pay the in'demnity is by exports; yet some of her best customers are unable to buy,” added Mr. Lloyd George. “It is also true' that if Germany exported too much to the Allies it would ruin Allied induslj tries. Nevertheless, there is a real margin witlun which Germany can pay. Experts have studied the problem for months, and I am willing that their proposals be criticised and approved, but mere adjournment wou’d only mean a set-back. I hope the French Government will accept the- Boulogne agreement as the basis of settlement.”

Continuing, Mr. Lloyd George said M. Doumer’s figures were morally justifiable but he did not find them practicable. The Allies must use all their authority under the Treaty to make Germany put herself in a position to pay. She was not doing this at present. Her financial affairs were chaotic, her revenues did not approach her expenditure. apd her citizens were not even taxed on the same amount as those of the Allied countries. No doubt this was done to improve her bargaining position, The Allies must see that Germany imposed on her people burdens at least as heavy as those of the .Allies. The German people must make some economies. The Belgian and Italian lelegates supported Mr. Lloyd George in that the Allies must not depart from the Boulogne and Brussels agreements. After Mr. Llojd George had spoken, M. Briand (Premier of France) said that according to the Boulogne agreement France should receive 65,000.000,000 gold marks. France’s external debts were 25,000,000.000 marks. The difference would not enable France to repair the devastated areas, and he could not agree to make such a sacrifice. He asked the Conference to fix the annuities now, and later examine Germany’s total liabilities. —Aus. and N.Z. Cable Assn. London, Jan. 27. The Central News Paris correspondent states that the Allies are unanimous on the principle of making Germany pay to the uttengost farthing, but there is a divergence of opinion as to the method of payment. France expected sixteen and a half milliards of francs from Germany to assist her to meet her heavy deficit. Cabinet does not di/e to increase taxation, while Germany is escaping with T3‘a head. Mr Lloyd George and the Belgians are willing to take half cash and half raw materials, but the French miners do not favor importing coal, in view of short time being worked in the french mines.—Aus.-N.Z. Cable Assn. RECOGNITION OF NEW STATES. OBJECTION BY AMERICA. Received Jan. 28, 8.5 p.m. Washington, Jan. 27. The State Department has declared that the Allied Supreme Council’s action in recognising Latvia and Esthonia is against the United States policy. Officials believe the Allies’ action may lead to the recognition of the Siberian Government, with the loss of that territory <o Russia.—Aus. and N.Z. Cable Assn. ATTEMPTED ASSASSINATION. Paris, Jan. 27. A young Armenian, after fruitlessly demanding money to enable him to return to his country, attempted to shoot Aharaonian, chief Armenian delegate at the Allied Conference, the bullet grazing his chest. The youth pleaded that he desired to lay the blame on the Arjnenian president for his country’s hunger.—Aus.-N.Z. Cable Assn. AN UNOFFICIAL MEETING. Paris, Jan. 27. An unofficial conversation took place to-day between Mr. Lloyd George and French Ministers. It is understood that if an agreement on She reparation question is not reached by the weekend a further conference of Premiers will be_ called after the experts have reached their conclusions.