FRANCE ANGRY.

Taranaki Daily News, 9 June 1922, Page 5

FRANCE ANGRY.

PAYMENT FROM GERMANY, FEAR OF REDUCTION. SACRIFICES TO STOP, By Telegraph.—Press Assn.—Copyright. Received June 8, 8.30 p.m. London, June 8. The Morning Post’s Paris correspondent states the Reparations Commission’s decision struck Paris like a I thunderbolt. Parliamentary circles consider it another step in the direction | of reducing credits due to France from ■ Germany. It is felt that France, which has already made many sacrifices regarding i the debt, is being manoeuvred into a position where the pressure applied will make her accept still further reductions. The bankers’ committee will I probably formulate conclusions tending 1 i to such a reduction. M. Poincare, in a statement to a i ■ Senatorial Commission on foreign af- I fairs/ declared that every preparation | had been made for recourse to sanctions if the Reparations Commission reported that Germany was not show- ■ ing good faith in attempting to meet , her obligations. Exact instructions had been given to France’s financial representatives in Germany for the strict- I est possible control of Germany’s finan- , cial affairs. The French Government ! insisted that there should be no reduction in the amount to be paid by i i Germany. Paris, June 7. I It is reported that M. Poincare has I flatly refused to consent to a reduction ! in the German Reparations Bill. This decision dooms to failure the proposal of the bankers’ committee to issue international loans for payment of the German debt. The Reparations Commission has officially declared in favour of granting an extension of powers to the committee of bankers, France alone opposing. ATTITUDE OF GERMANY. SMALL LOAN NOT ACCEPTABLE. ONLY TEMPORARY HELP. Received June 8, 8.30 p.m. Berlin, June 8. Herr Stinnes, addressing Westphalian manufacturers and business men in reference to the reparations loan, said a small loan which would give a moment’s breathing space would not help Germany to meet her obligations. If reparations were to be paid and the j interest and sinking fund on the loan were to be found, there must be a considerable increase in the rate of production, but if the German population were asked to work harder they must be given conditions which would convince them that their labor had some aim. A small loan would he harmful, because it would cause an artificial improvement in the value of the mark. This would be intolerable for France, because Germany would become independent of French supplies of raw materials from the annexed territories. He considered the occupation of further German territory preferable to a small loan. —Aus.-N.Z. Cable Assn.