WAR DEBTS

Taranaki Daily News, 5 August 1922, Page 5

WAR DEBTS

POLICY OF FRANCE. EEPORTED concessions, CUT IN REPARATIONS. FORECAST OF OFFER. Hew importance hw been given to the whole problem of the war debts among the Allies and reparations from Germany by the British offer of renunciation. A conference of Allied Premiers will be opened in London on Monday, when it is forecasted that the Premier of France will announce that France is prepared to make important conces, ons both in war debts and reparations. Another feature of this morning s news is a striking statement by Mr. Lloyd George on Britain's attitude towards the payment of reparations. By Telegraph.—Press Assn.—Copyright. Received Aug. 4, 7.45 p.m. London, Aug. 3. The Daily Express declares M. Poincare on Monday will offer to accept a reduction in German reparation.- from £6.750,000,00*) to £2,500,000,000, and will cancel the £480,000.000 of debts owed France by the ■mailer Allies, provided France’s own debts, amounting to £1,174,000,000, due to the Allies, are cancelled and she receives 89 per cent, of the reduced reparation®. This means that France would receive £1.200,(MM. 000 less from Germany and gain £694,000,000 by debt cancellation. Britain would lose £1,450,000.000 from Germany and £584,000,000 by debt cancellation. The Daily Chronicle’s Paris correspondent states neither Lord Balfour’s Note nor M. Poincare’s ultimatum will be permitted to interfere with Monday’s conference. M. Poincare is bringing his own reparation plan, which probably will be less exacting than anything previously suggested. M. Poincare probably will qffer important concessions io Germany, provided he receives fuR assurances on questions of control and guarantees. If accord is reached on these points the international bankers will probably be asked to reconsider the question of an international loan to Germany. Official circles are most reticent regarding the nature of the measures M. Poincare is pledged to enforce on Saturday in the event of Germany’s non-compliance with his ultimatum, but it is practically certain they inelude the expropriation of important German industries in the occupied Rhine region and the establishment of stout customs barriers for the Ruhr and Rhine provinces. The Morning Post's Berlin correspondent states Lord Balfour's Note has attracted little attention. The Vossische Zeitung alone published the full text, and comment? that the idea of the cancellation of international debts is the only possible solution of the present crisis. It was hitherto kept in the background, because America short-sightedly refused to assist Europe. It would be to America’s own interest to help Europe, because it was economically impossible for a single nation simultaneously to be the greatest creditor and the greatest exporting State. Det Tag regards the Note as cleverly finking inter-Allied indebtedness with Ger-

man reparations, and proceeds: ‘‘For Ger- I many, the concluding portion of the Note j is naturally the most important, as it op- i poses the violent French demands and fore- ! shadows England’* diplomatic support to i Germany in the prerent controversy with , France. We believe combined action by j America and England is imminent.” BRITISH LABOR’S VIEW. APPROVAL OF THE NOTE HARSHNESS OF PEACE TREATY. Received Aug. 4. 9.50 pjn. London. Aug. 3. Mr. Arthur Henderson (a prominent Labor MJ*.), speaking at Heywood, said the failure of the Versailles Treaty -w*s amply evidenced by the scope and intensity of the terrible effects of the economic , clauses experienced alike by the van- ' curibed and the victorious, and immediate revision was essential on the grounds of • honor and expediency. The Allies should 1 not go "beyond the armistice and were not entitled to demand more than , they could actually g?t. Labor welcomed lord Balfour’s Note. British policy was doing the right thing, which should not, however, be conditional on America doing likewise. —Aus. N.Z. Cable Assn. INITIATIONS OF SANCTIONS. FRENCH PREPARING. MARK’S FURTHER DROP. Received Aug. 4. 8.30 p.m. Berlin, Aug. 3. French troops that were due to leave the Rhineland for France have been ordered to remain for the purpose of guaranteeing the undisturbed initiation of the sanctions, if imposed. The exchange rate closed at 4000 marks to the pound. FRANCE’S DEMANDS. REPLY FROM GERMANY. Received August 4, 5.5 p.m. Berlin, August 3. The Government is drafting a reply to M. Poincare's Note, contending that the threatened sanctions are illegal, as France cannot know before August 15 whether Germany will really default. AN AMERICAN VIEW. THE DISARMAMENT ASPECT. Received Aug. 5, 12.5 am. Washington, Aug. 3. Senator Borah states the people of the United States will never be greatly interested in any proposition for the cancellation of the Allied dent to the United States ttnle?" accompanied by certain guarantees of practical (frArzmunsn* nn ‘v*d aad sea.