REPARATIONS.

Taranaki Daily News, 2 September 1922, Page 5

REPARATIONS.

NEW PAYMENT SCHEME. RESPITE FOR GERMANY. MORATORIUM REJECTED. BILLS REPLACE CASH. Uy Telegraph.—Press Ann.—Copyright. Received Sept. 1, 7.55 p.m. London, August 31. Before the- Reparations Commission met M. Dubois, the chairman, had a lengthy interview with M. Poincare, and the commissioners then met informally before the official meeting opened. It was expected the moratorium would be refused by three votes to two, M. Dubois giving his casting vote against The commissioners unanimously agreed that the German proposals were unacceptable, but'unanimity vanished on the question of a moratorium, and the comaniesion then adjourned, and M. Dubois again saw M. Poincare. When the commission resumed only Sir John Bradbury supported the granting of a moratorium to the end of the year. France and Belgium voted against it and Italy did not vote. The commission then adopted unanimously the Belgian proposal allowing payments to the end of the year in German Treasury bills It i« generally recognised Germany’s respite is due to the generosity of Belgium. The plan adopted was submitted by Belgium and Italy jointly. It should be explained that monthly bonds securing £14.000.000 worth of bilk, when mature, will be met with gold marks. The Belg an and German delegates will meet in Berlin or Brussels to diaeaw ■ details, the only outstanding question being the character of the securities for acceptance by Belgium. The Dailv Express understands Germany will offer three banks, the Deutscher, Dresdener and Dl-eonte. and failing the Allies' acceptance, either will deposit the money -in Copenhagen nr Berne. —Aus.-N.Z. Cable Assn. TEXT OF THE RESOLUTION. PLAN TO OPERATE THIS YEAR. MONEY FOR BELGIUM. PROVISION FOR GUARANTEES. Received Sept. 1. 7.55 p.m. Paris, August 31. The Reparations Commission to-night issued the following communique:— Tn view of the fact that the commission has not seen fit to grant a moratorium as requested by Germany, it was not thought proper for the time -being to pronounce upon the proposals from Germany regarding coal and timber deliveries. The commission reserves the right to enforce measures similar to those offered by Germany if the future coal and timber deliveries are not satisfactorily carried out. The commission manimously adopted a resolution as follows:

•The commission, replying to the demand for a moratorium, dated July 19, and considering that the Reich has loss all its credit at home and abroad, and that the mark has fallen to threethousandths of its value decides:—

“(1-) To postpone its decision upon the demand from the Reich until it lias completed a scheme for the radical reform of the public finances of Germany, providing for (a) the balancing of the Budget, (bj in the event of the Governments represented on the commission assenting for an eventual reduction of the external charges of Germany to the extent regarded as necessarv for the reparation country, (c) for military reform. (di for the issue of internal and external loans with a view to the consolidation of the financial s’tnation.

M (2l That in view of the time necessary for the preparation and execution of the measures mentioned above, the commission will accept in payment of cash payment* due on August 15 and September 15 and (unless other arrangement? are subsequently made) for the payments due on October 15 and December 31 German six months Treasury bills, backed by upon whicn the German Government and the Belgian Government, to whom the payments have been assigned, must agree and in default of such arrangement backed by guarantees bv mean= of the deposit of gold in a bank acceptable to Belgium."—Aua-N.Z. Cable Assn.

WHAT THE DECISION MEANS. A BIGGER PROBLEM LATER. BRITISH PRESS OPINIONS. Received Sept. 1, 7-55 p.m. London, Auguet 31. Sir John Bradbury, interviewed, said the decision of the Reparations Commission gave Germany respite from rash payments during 1922, provided she found suitable guarantees for the Treasury bills. An alternative arrangement in default of guarantees was the ear-mark-ing of about £14.00C.r00 worth of the *ieichs bank’s, gold, which, in Sir John Bradbury’s opinion, was undesirable, on the ground that rt meant pledging a portion of the gold reserve in the Reichs bank, which was an important factor in the interests of German credit. He hoped that an arrangement would be reached for guaranteeing bills. Sir John Bradbury added that the entire question of future payments, especially those for 1923, remained to be considered.

The London Press comments approvingly upon the decision, except the Daily Herald and the Daily News. The latter doubts if the decision will steady the mark or inspire Germany with hope, a prolonged moratorium being the only solution of the problem. The Daily News also declares the provocative threats ever in the mouths of French

statesmen must cease, and the British part in bringing France to a proper frame of mind is to forgive the French debts.

The Morning Post says the existencw of Europe as the centre of civilisation depends on Germany's response to the Allies’ generosity in reparation. The way is hard, but it is Germany’s only way to salvation, which can only be won at a price.

The Daily Chronicle <says that in substance Sir John Bradbury’s policy has prevailed. Thanks to the masnanimous and irresistible proposal by Belgium and the judgment and forethought of the Belgian and Italian delegates, Europe has secured another breathing - space. The Daily Telegraph says that if the Allied Governments accept and endorse the commission’s decision they will be in a very different position—in which they can converse with Berlin—from that in which they would have been if Germanv could see the Entente Powers driftinsr apart, and their reservoir of goodwill rapidly emptying. The commission did good work, and it rests with their Governments to conso’’ late it and look ahead betimes to the next and more difficult decision.

The Daily Herald declares M. Poincare manoeuvred the Belgians into such a position that if. as seems inevitable, the Germans again default in four months’ time, the Belgian Government will be compelled to consent to whatever penal measures the French Government may see fit to put into operation.

The Morning Post’s Berlin correspondent says that most thinking Germans are convinced that France wants coal and not reparations. If France ever occupies the Ruhr the Germans must work for France or starve. German industry. having lost the Lorraine iroq and the Ruhr coal, will have only one asset, namelv labor. France could then safelv allow that labor to build up Russia. which would enable France to secure reparation payments from an earning people, and later indirectly re cover from Russia compensation for French investors. This view has prompted manv quarters to suggest a France and German rapprochement, which would allow German industry to grow strong again without France fearing retaliation from a resurrected Germany.