REPARATIONS PLAN.

Ashburton Guardian, Volume 49, Issue 201, 11 June 1929, Page 5

REPARATIONS PLAN.

THE INTERNATIONAL BANK. ABOLITION OF CONTROLS. (United Press Association—Copyright) LONDON, June 10. In regard to the International Bank under the Reparations Agreement, it is proposed that the bank may not enter into competition with existing institutions, but it is proposed to put its administration in the hands of the existing central banks, apd so give them control over any operations that might merge into competition with them. It has jiot yet beep decided in which country it shall place its offices, though Belgium, Holland and Switzerland have been mentioned. Under the Experts’ reparations plans German revenues from alcohol, sugar, tobacco, etc., are no longer controlled, railvvay and industrial bonds cease to exist, and the index of prosperity is abolished. The railways remain liable to a contribution which is to take the form of a direct tax to bring in 600,000,000; marks a year for 37 years, but the complete independence of German railways is assured. The plan, indeed, makes it clear that all the liabilities of Germany arising out of the war are covered by the annuities contained in the plan.

In the concluding chapter of the report the Experts plead: for. obliteration of the atmosphere left by the war, and stress the need for co-operation and goodwill in carrying out settlements which they say should have the effect of bringing all the nations concerned to a higher level of economic stability and reaching closer understanding than ever before.

The report has now to be submitted to the various Governments concerned for their adoption. The Experts ask that it shall be accepted as a whole.

“FAVOURABLE TO GERMANY.”

LONDON, June 10.. The i“ Daily Telegraph’s” diplomatic correspondent says: “The first impression of the Reparations report is that it is decidedly favourable to Germany. While retaining complete financial autonomy, she retains the benefits of the transfer or safeguard clause, enabling her during a period of depression to suspend temporarily either the transfer abroad, or even the payment, of two-thirds of the average annuity. Franco also stands to benefit from the new banking .institution.” —Australian Press Association.