REPARATIONS.

Taranaki Daily News, 12 June 1922, Page 5

REPARATIONS.

r A SERIOUS DEADLOCK, BANKERS’ PROPOSALS. REDUCING INDEMNITY, By Telegraph.—Press Assn.—Copyright. Received June 11, 5.5 p.m.. London, June 10. The Paris correspondent of the Daily Express states that the banking committee on reparations has adjourned for three months. The committee suggests as essential to a German loan: (1) A reduction of the indemnity by half. (2) The lenders to have prior rights over all claimants to collect customs and other German securities. (3) Germany to receive half the amount of the loan. (4) Germany- should not be obliged to pay any part of the indemnity for three years, and should have the power of control over her own finances, including taxation. France puts forward impossible terms, namely, the cancellation of all war debts due to America and Britain and the cancellation of the British share of the indemnity. France argues that Britain had a fair share in the seizure of the German Navy and the destruction of her mercantile marine and in the transfer of her colonies. The failure of the Allied Governments to reach a unanimous agreement on the scope of their authority is the main cause of the adjournment of the bankers’ committee. Mr. Pierpont Morgan furnished another reason, namely, that no great international loan would be very successful in America until next spring.—Aus.-N.Z. Cable Assn. THE INTERNATIONAL LOAN. DEPENDS ON FRENCH POLICY. Paris, June 3. It is reported that Mr. Pierpont Morgan opposes proceeding further with the German international loan. If France holds the London schedule of German payment inviolable, Mr. Morgan regards it as futile to study the reparations problems for Britain, Belgium and Italy, who, in the aggregate. are only entitled to 40 per cent, of the reparations. Most newspapers strenuously oppose the reduction of the German debt, except the Gaulois, which declares that France ?s moving in a vicious circle. The point is whether it would be more advantageous for France to reduce the debt or to await further opportunities for settlement. L’Action Francaise believes a reduction is inevitable and that it is uselt o grumble.