REPARATIONS.

Taranaki Daily News, 2 June 1922, Page 5

REPARATIONS.

POLICY OF BRITAIN. LOYALTY TO FRANCE. DEMANDS MUST BE MET. By Telegraph.—Press Assn.—Copyright Received June 1, 5.5. p.m. London, May 31. Tn the House of Commons Mr. Lloyd George made a statement dealing with reparations. He said the Reparations Commission was not yet able to say what their definite answer would be lo the German proposals, and therefore it was difficult for him to enter-upon a discussion on the subject. Anything he might say could hardly be useful at the present moment and might easily be harmful, but it might be assumed that the critical phase presented a few weeks ago had passed. There was one fact which had upset the balance of the Reparations Commission, as it has also upset the League of Nations, and that was the absence of America. The absence of America from the' machinery of the Versailles Treaty made it less effective, and made it work with less precision. There was no cause for disagreement between France and ourselves. He was glad Germany had made real efforts to meet the require* ments of the Reparations Commission. His conviction was that safety for France could be found only in the practice of what was provided for in the League of Nations’ covenant. Were we, he asked, committed in any way to join in an invasion or any further occupation of German territory? Mr. Lloyd George asked what ground of objection could there be to the suggestion of an international loan as a moans of enabling Germany to pay a large portion of her reparation demands. He believed Germany was honestly doing her best in the face of very considerable political difficulties, and consequently she was entitled to every consideration and respect. A policy of non-fulfilment by Germany would be a policy of disaster for her. It was not a question of France acting alone if there was defiance of the Treaty of Versailles; we were signatories of it, and were committed to it. If a Government did come in Germany to resist the treaty it was not France that Would be left alone to exact the conditions; we should act. We had stood for a policy of moderation and restraint and thereby had rendered ourselves liable to a good deal of misrepresentation in France, but we should still stand for moderation, as well as for a policy of fulfilment. Any isolated action by our Ally would be disastrous to the Entente. A proposal had been made outside that Britain should remit the whole of the £3,ooo,Uuv,vuO of debts owing her by other countries without receiving a remission of the £ 1,■000,000,000 which Britain owed. He declared that no Government could possibly contemplate such a thing, although we were perfectly willing to enter into an international discussion with a view to obliterating the war debts owing to Britain, provided we received some benefit in regard to the debts which Britain owed.—Aus.N.Z. Cable Assn. GERMANY’S PROMISES. SERIOUS EFFORT TO PAY. Received June 1, 9.55 p.m. Paris, June 1. The Reparation Commission, replying to Germany, while regretting Germany did not begin such steps earlier, says that the action taken and promised constitutes a serious effort on Germany’s part to meet the Commission’s requirements; therefore they confirm the provisional moratorium granted on March 21. The Commission, however, points out that this postponement is liable to cancellation at any time if the Commission is satisfied Germany has failed to carry out the condition laid down. The Commission reserves the right to cancel postponement if, through failure to raise an international loan, Germany fails to carry through her promised arrangements regarding the floating debt or fails to find other approved arrangements' for dealing with her Budget deficits and floating debts. FEELING IN GERMANY. POLITICAL CRISIS LIKELY. Received June 1. 9.55 p.m. Berlin, June 1. The Press generally adversely criticise tlie German reparation Note, and it is already suggested that a political crisis will arise in that connection when the Reichstag resumes after the Whitsun recess. To-day the People’s Party supported the Junkers in a “no confidence ’ motion, which the Reichstag nevertheless defeated by a substantial majority. The Deutsche Allgemeine Zeitung, Herr Stinnes’s organ, declares the Note is the most perilous and dishonouring to Germany ever issued.