ALLIES DISAGREE.

Taranaki Daily News, 11 August 1922, Page 5

ALLIES DISAGREE.

CRISIS AT CONFERENCE. FRANCE ISOLATED. REPORT OF EXPERTS. HOSTILITY TO SANCTIONS. ( Telegraph.—Press Assn—Cspyrfght. Received Aug. 10, 8.45 p.m. London, August 9. The presentation late to-night of the exports’ report, which is entirely hostile to M. Poincare's proposals, has brought the Allies’ Conference to a crisis, necea aitating the hasty calling of Cabinet. This will be held on Thursday afternoon. There will be do full meeting of the conference to-morrow, but it meets on Friday instead, after Cabinet has decided on a coursq of action. The experts’ report deals with M. Poincare’s proposals seriatim with a view to deciding what the cash propos als will produce. This was the only point of view considered. Regarding . the proposal that the Allies should establish control of coal mines and forests, the Italian. Japanese and British experts agreed that it would produce no eash. and would be useful only as a sanction. The Belgians, however, supported France on this proposal. Regarding the suggested establishment of a Customs line between the occupied area and the rest of Germany, also around the Ruhr, all the Allies except France agreed it would be better to take over the present normal Customs arrangements at the present frontiers than to cut up Germany by a fresh Customs line. Regarding the proposal that the Allies should take over a 60 per cent, share of factories on the left bank of the Rhine, all the Allies exs cept France opposed the suggestion on the ground that the only manner of taking over a share would be to compel the German Government to buy out the present proprietors and hand their shares to the Allies. The German Government could only do that by printing fresh paper money, the result of which would be to aggravate the currency situation. The experts felt there could be no real moratorium in remitting the present forms of payment by Germany if thereby they simply imposed other equally onerous forms of payment. The Daily Telegraph points out that the position at the conference was so grave on Tuesday night that M. Theunis had successive interviews with MrLloyd George and M. Poincare until 1.30 in the morning in an attempt at mediation. - After all the delegates had luncheon together it wa« announced that the experts would deliberate again in the evening. M. Poincare eeemed determined to return to Paris with some definite scheme relating to the Ruhr in his pocket, as the French Parliament had expected and demanded. M. Poincare pointed out that France could accept some pledges involving paper marks payments, as she could use the same for buying German goods. Mr. Lloyd George to-day made it abundantly plain that he was not prepared. in the present condition of Europe. to embark on any echeme which would involve sending Allied officials to Germany with the risk of causing civil disturbances, and probably necessitating the use of military force. —Aus.-N’.Z. Cable Assn. EXCHANGE RATES. CRISIS CAUSES DECLINES. Received Aug. 10. 8.5 p.m. London. August 9. Exchange rates: Berlin 3575 marks; Paris 5535 franc*. The declines are attributed to apprehension regarding the outcome of the Allies’ Conference. THE LATEST REPORTS. A CRITICAL SITUATION. GRAVE DECISIONS PENDING. Received Aug. 10. 8.5 p.m. London. August 9. The latest reports indicate that the Allied Conference situation is critical, and there is little prospect of an agreement. A special meeting of Cabinet has been summoned for to-morrow to consider the British policy, when grave decisions may have to be made, owing to the French views differing from those of the other Allies. Mr. TJovd George, M. Poincare and M. Theunis had a three hours’ conversation to-dav discussing the possibilities, but nnfortunatelv little progress wae made. —Au< NJ?. Cable Assn. ‘RUPTURE UNAVOIDABLE." FRANCE MAY ACT ALONE. Received Aug. 11. 12.45 a.m. Txvndon. August 10. A Daily Express Paris message states that gloomy dispatches bv the French correspondents accompanying M. Poincare indicate the opinion that a rupture between France and her Allies is un-. avoidable. It is believed that if this occurs M. Poincare will verv likrlv secure a Parliamentary vote of confidence, and thereafter instantly execute a scheme of his own devising. La Liberte suggest = that if France acts alone, sb* will get about £24.000.300 from the Cnetom’. though Germany will undoubtedlv take advantage of France’s isolation, and French and Belgian francs, also Italian lire, will all depreciate—Aus.-N.Z- Cable Assn. FRANCE’S WAR COSTS. . CHARGE OF MISQUOTING. Received Aug. W. 8.39 P ™ Pans. Augn’t 9. The Matin and other new«n«per" eharre Mr. Word Ceorre -'th in? the ffynreo of the rorts at the fnitiat eee.-on rf the ferenre They declare he o n f mffliard. of franca hy tniwtne a in rath a eoloMal error.