REPARATIONS.

Taranaki Daily News, 13 June 1922, Page 5

REPARATIONS.

NO CHANCE OF LOAN, BANKERS OPPOSED, THE FRENCH ATTITUDE. By Telegraph.—Press Asan.—Copyright. Paris, June 10. The official report of the Bankers’ Committee says that as soon as they met they were unanimous in the opinion that they could not, within the limits : of the terms of reference understood in the most restricted sense, offer any prospects of an international loan. They decided that, for the time being, they could not usefully continue their deliberations in response to the invitation j from the majority of the Reparation I Commission, because, firstly, France is j Germany’s chief creditor, and the banki ers are all extremely anxious that no action of theirs should injure France’s interest. Secondly, the committee consider the favourable atmosphere essential to the successful flotation of a loan and the known differences amongst members of the Reparations Commission as to the limits of the committee’s ’mandate have created for the time being an unfavourable atinosphere for the issue of such a loan. The committee, although obliged to express an unfavourable opinion regarding the possibilities of a loan in Germany’s present situation, declared its conviction that, if the conditions necessary tc the revival ( of Germany’s credit were realised, substantial loans could be successfully floated in all the principal markets of the world. The committee considers the financial conditions now more favourable for the issue of such loans than any other time since the war. The committee assures the Reparations Commission of its strong desire to help the issue of such loans, therefore, if the commission unanimously renewed such an invitation as had now been made by the majority only, the committee would be happy to resume its deliberations now interrupted. All members of. the committee, except the French, signed the report. Mr. Morgan, the American banker, interviewed prior to his departure, said he believed that a settlement by means of an international loan was not possible without a general settlement of the reparation question, and only as part of such settlement. There had been no discussion of the capital amount, but only of the possible arrangement of annual payments, the latter in cash or kind, the only means whereby Germany could pay her debts. OPINIONS IN GERMANY. PRESS COMMENTS. Received June 12, 5.5 p,.m. Berlin, June 11. The Allgemeine Zeitung says the failure of the bankers’ committee at Paris has created a very critical situation for Germany and Europe. Other newspapers take a less serious view, suggesting that the Government need not carry out the reforms promised to the Reparations Commission or stop printing notes.