HAGUE CONFERENCE

Ashburton Guardian, Volume 50, Issue 74, 8 January 1930, Page 5

HAGUE CONFERENCE

MOST DIFFICULT ISSUE. CERMANY’S FUTURE DEFAULT. AUSTRIA REFUSES PAYMENT. (United Press Association—Copyright.) THE HAGUE, January 7. Apart from Austria’s dramatic pronouncement that she cannot pay one penny in reparations, principal interest centred in the secret meeting at the Binnenhof between the chief German delegates and representatives of the principal creditors. No secretaries or exports were present, and no communique was issued. It is understood that a frank discussion of the halfdozen remaining points in connection with German reparations occurred. The important question was that of hard cash. It concerns the date upon which transfers are to he made by Germany to the International, Bank of the monthly payments of an average of £8,500,000 each. The loss or gain of interest according to • whether payments are made on the first day or last day of the month may amount to £4,000,000 or £5,000,000 annually. Until : a compromise is reached in the matter, it is certain to give rise to most ingenious controversy. Other points remain include the gold value of Germany’s currency, and assurances regarding the security of certain German revenues now mortgaged for reparation purposes. The problems are so complex that Dr. Curtins has specially summoned Herr Schaeht to The Hague. The most difficult question remaining, .however, relates to measures to be taken in the event of Germany’s‘future default, and the precise powers of r ±he International Bank. The Germans want an assurance that the Young Plan implies the moral end of the regime of sanctions; and particularly the military sanctions. While M. Briand. and M. Tardieu are privately convinced that the sanctions are things of the past, they are unwilling publicly to give any assurance that might he construed as a renunciation of the Peace Treaty. Since the matter was raised by the French, the German delegation will have to find a formula. Conversations between M. Tardieu and Dr. Curtins have been almost continuous. Dr. Curtins insisted that the international bankers would be strongly opposed to the idea of military sanctions, arguing that the American banking firms, which were undertaking to market the German bonds in the United States, in conjunction with the Allies’ banks of issue, would not guarantee a successful sale of the bonds if any military controversy,was raised. The general belief is that the Germans will not succeed in having the provisions of the Treaty of Versailles annulled, but may keep the sanctions out of the protocol. It was reported, during lunch with Mr Snowden, that M. Tardieu suggested, in the event of Germany exercising her rights under the Young Plan to .suspend payment, all the machinery provided in the Plan should lie put into operation, and if in the end the Arbitration Committee decided against Germany, the latter should have the right to bring ;the matter before the World Court at The Hague. Only after the World Court had decided. against Germany would the rights imposed by the sanctions exist. The time occupied by this procedure was estimated to be a‘.year.