GERMANY’S DEBT.

Taranaki Daily News, 9 August 1922, Page 5

GERMANY’S DEBT.

THE ALLIES’ CONFERENCE. THE CASE FOR FRANCE. SUSPICIOUS OF BERLIN WILL ACT WITH ALLIES. By Telegraph.—Press Ann.—Copyright. London, August 7. Crowds of holiday-makers witnessed the assembling of the delegates to the interAllied Conference in Downing Street. The delegates were: Britain—Mr. Lloyd George (Premier), Mr. Austen Chamberlain (leader of the House), Sir Robert Horne (Chancellor of the Exchequer) and Sir L. Worthington Evans (Secretary for War). France—M. Poincare (Premier), M. de la Steyerie (Minister of Finance). Belgium—M. J asp ar (Premier) and M. Theumis. Japan—Count Hayashi. Italy—Signor Schanzar (Foreign. Minister) and Signor Paralore (Minister of Finance). The conference sat two hours in the morning and three in the afternoon. The following are summaries of the speeches semi-officially issued after the adjournment. M. Poincare said that since he last conversed with Mr. Lloyd George in London two important events had occurred—Germany’s demand for a complete moratorium till 1924 and Lord Balfour’s Note. France had spent 80 milliards of francs upon reparations, which Germany should have paid, resulting in a very critical financial position in France. France could not reduce her armaments, because she was not satisfied regarding her security, owing to lack of the guarantees originally given her at Versailles. Further taxation in France was politically and socially impossible. The devastated areas could not pay. The people of France did not possess large fortunes like the British people, which could be taxed. GERMANY EVADING TREATY. The Versailles Treaty was being less and less carried out in Germany. Despite constant protests she had embarked on reckless expenditure and inflated her currency unscrupulously. The French viewed the granting of a moratorium to Germany as impossible without the production of guarantees. If left alone France might take strong measures, but she wanted to work with all her Allies and throw all her cards or the table. M. Poincare enumerated the proposed guarantees, the nature of which was not revealed.

Mr. Lloyd George detailed the disarmament which Germany had carried out in accordance with the treaty. Germany as a military power was prostrated,, broken and in the dust. Despite the remissions of payment granted her, Germany had. actually paid reparations amounting to £500,000,000. The war had been more costly to Britain than to any ally. Britain in wartime raised £3,000,000 in taxation. Mr. Lloyd George quoted from the Bankers’ Trust Company of New York the following totals of war costs: France 374 milliard dollars. Italy 14J, British Empire 49. Mr. Lloyd George contended that this gave Britain a claim to reparations, even if the reconstruction of the devastated areas was added to France’s war costs.

’ Mr. Lloyd George said that if France was entitled to recover £160,000,000, he believed Britain was entitled to £100,000,000. Regarding the devastated areas, while not minimising the terrible injury

to France, he reminded M. Poincare that Britain had devastated trade, which imposed an equal burden on the whole population. Britain’s burden was 1,400,000 unemployed, and the population of the devastated French area was 2,000,000, but the total affected by unemployment in Britain was between four and five millions, who were supported from taxation. Speaking with practical experience as Minister of Munitions, he knew the quantity of equipment Germany had handed over and it would take 30 years to manufacture it secretly. Germany at present was unable to equip an army fit to meet one of the lesser Allied States. On the disarmament side the treaty had done its work. CASH OR TROUBLE? It must be remembered that there had been three revolutions in Germany. The Berlin Government had only incomplete control over some provinces, like Bavaria, but despite this, the Committee on Guarantees had reported favorably on the German effort to collect taxation. It was true Germany was continually crying out about her terrible condition, but he did not think they were bound to accept this without enquiry. He did not desire to relieve Germany of any payment she was able to make, and the Allies were all equally interested in wresting as much from Germany as possible. Mr. Lloyd George said it was all a question of finding a method which was likely to produce solid cash instead of increased trouble. He suggested that M. Poincare’s proposals be referred to a committee comprising the Finance Ministers and experts, which would report on this to a plenary conference on Tuesday. Signor Schanzer, M. Theunis and Count Hayashi supported this view, urging that the Allies’ single object was to get the money. PROPOSALS OF FRANCE. SOME DRASTIC PROVISIONS. TENSION AT CONFERENCE. Received Aug. 8, 5.5 p.m. London, August 7. The Daily Telegraph says the Allies* Conference met in an atmosphere of considerable tension, and it was owing to this that the utmost secrecy was maintained. At an interval Mr. Chamberlain, by means of a felicitious intervention, elicited from M. Poincare a clear intimation that while the principle of his proposals for control must be accepted, a selection therefroiri could be made by a committee of experts. M. Poincare’s suggestions included supervision of the Reichsbank, export licenses, foreign currencies, mines, forests, extra ■customs, coal, taxation, and a share in industrial concerns. Mr. Lloyd George at one stage reminded M- Poincare that he was usurping the functions of the Reparations Commission, and M. Poincare good-humoredly rejoined: fl often had to charge you with the same oing-”