REPARATIONS PLAN

Ashburton Guardian, Volume 49, Issue 200, 10 June 1929, Page 5

REPARATIONS PLAN

TEXT OF THE AGREEMENT.! BRITAIN’S SHARE OF ANNUITIES. A DEFINITE PERIOD FIXED. (United Press Association—Copyright.) (Received This Day, 11.50 a.m.) LONDON, June 9. The full text of the report of the Committee of Experts on Reparations i© now available. The ‘iliain effect of the committee’s work, which has been achieved with unanimous agreement, is to substitute a definite fixed liability to coyer Germany’s entire obligations of reparations for an indeterminate scheme launched by the Dawes Conference in 1924. Thereby it is expected that financial, economic and industrial interests throughout the world will benefit. At present, under the Dawes Plan, Germany pay© the equivalent of £125,000,000 a year for an indefinite period. It is important to note that while no judicial connection exists between reparations and war debts, the Experts have made a de facto relationship between them. They provide that if there is any reduction in the war debts during the first 37 years, twothirds of this relief shall profit Germany and one-third shall benefit the credit concerned. During the last 22 years Germany would benefit by the whole relief. Of each of the first 37 annuities a sum equal to £33,000,000 is payable without any right of postponement. The committee recognises that this is a conservative amount, but they consider it wiser to underestimate than to run the risk of weakening German credit by fixing it too high. France’s share in this unconditional portion is £2,000,000. As to the main part of the annuity, Germany, by giving 90 days’ notice, can, in the event of grave economic difficulties, suspend it for a period of two years. The constant rise in the annual payments is to reflect the anticipated increase in Germany’s prosperity. The sources of annuities are to he German railways and the Budget of the Reich. The experts have decided to-maintain, deliveries in kind for a period of 10 years. During the first year their value will bo £37,500,(XXL but they will decrease progressively to £15,000,000 in the tenth year, when deliveries in kind will cease altogether. Of these deliveries, Great Britain takes 23 per cent, and France 54 per cent. As to Great Britain’s share in the whole annuity, the object of the British experts has been, first of all, to provide, year by year, cover for cover, for the American debt, leaving over and above this a constant sum to meet the Dominions’ claims.

In the first full year, beginning next April, Great Britain receives £lB,350,000 out of a total annuity of £85,400,000. The largest sum that comes to her Is £22,850,000, in 1940. In the last of the 37 years she receives £20,500,000 out of a total of £121,450,000. The net result_ from Great Britain’s point of view is that her share is somewhat lower than would come to her on the existing basis. In regard to the International Bank which is to be established, the report says: “The Bank excludes from its procedure all political influences, and business principles and practice intervene to facilitate the settlement of Germany’s obligations without in any way qualifying her independent and sole responsibility. The office for reparation payments and its associated organisation in Berlin will he retired, and the Reparation Commission’s relations with Germany will be terminated. Germany will assume the responsibility for raising and transferring the annuities and the Bank takes oyer the work of their receipt and_ disbursement.”—British Official Wireless.