REPARATIONS.

Taranaki Daily News, 16 December 1922, Page 5

REPARATIONS.

POLICY OF BRITAIN. DEBATE IN PARLIAMENT. V A DIFFICULT TASK. By Telegraph.-—Press Assn.—Copyright. Received Dec. 15, 7.45 p m. London, Dec. 14. On the motion for the third reading of the Consolidated Fund Bill, Sir John Simon initiated a debate by referring to German reparations. He said it was no use making recrimination with regard to gross miscalculations made four years ago. The real question was what was the Government’s attitude on the subject. Mr. Bonar Law said. French finance was based on the expectation of receiving the large sum promised by Germany, but at the end of the moratorium they found they were jn a worse position for getting anything than at the beginning. The Freneh view was that Germany, by currency inflation, deliberately avoided payment. Had there been a strong Government in Germany it could not have happened/ and German industrialists would not have made sych iipmence fortunes as they had by reason of the inflation, and placed tfiemselvs beyond reach of their Government. Discussing the relation between interAllied debts and reparations, he said that from the point of view of justice it could not be right that we can alone pay as a result of the war without receiving anything. It would reduce the standard of living in this country for a generation, to place the burden of which no one had any conception. We could not do it. We had reached a sound Budget pos lion at the expense of heavy taxation and we could not afford to be as generous as some foreign countries supposed, unless there was a distinct improvement in trade. We should be worse off than any of our Allies in regard to reparations. Germany was free from the terrible internal debt which burdened us, but all the information he had received was that Germany was very near complete collapse. There could not be improvement there until tbe mark was stabilised, yet in the opinion of every economist every effort to stabilise the mark would bring about that collapse.

Mr. Ramsay Macdonald said we must not attempt to conciliate France by the surrender of our own interests. The first essential was to pursue an economic and industrial policy to enable Germany to pay reparations both to Britain and France, They must lower their expectations. Mr. Lloyd George cordially agreed with Mr. Bonar Law's speech. He did not think he could assist settlement by any suggestion of his own. He might easily do harm, and he would therefore refrain. He was most anxious that negotiations should have a good issue. We could not hope for finality, but he at least hoped that Mr. Bonar Law would register a fresh step towards a settlement. The debate ended in a wrangle between Mt. Lloyd Gtorge and Labontes, Mr. Morell alleging that Mr. Lloyd George encouraged the French to believe Germany would be made to pay everything the war cost \ France. j When Mr. Lansbury was quoting Mr. Lloyd George as saying “Make Germany pay,” Mr. Morell reiterated the allegation, which Mr. Lloyd George repudiated warmly, amid a storm of cheers and counter-cheers, with a din all over the House. Mr. Morell: “One of the main causes that took Mr. Lloyd George back to power was the belief —•—” Lady Astor: 'That he won the wan” (Laughter.)) Mr. Jack Jones: “A good job he didn’t win you.” Lady Astor brought down the House by retorting: “He’d rather have me than you.” After further wrangling, the Bill was read a third time, and the House rose. UNIFIED ACTION NECESSARY. London, Dec. 14. Mr. Bonar Law, in the House of Commons, during a discussion on reparations, said that Genmnay could by passive resistance avoid payment for ever, but it would mean national suicide. Germany was now on the verge of a collapse. The Government could not view with equanimity the suggested occupation of the Ruhr. It would make reparation more difficult, perhaps impossible. There was almost no hope of a solution of the problem, unless France and England acted together.