GERMANY'S DEBT.

Auckland Star, Volume LII, Issue 25, 29 January 1921, Page 7

GERMANY'S DEBT.

BRITISH POLICY DEFINED,

TO EXTRACT lAST FARTHING.

HOW IS IT TO BE PAID?

(By Cable.—Press Association.—Copyright)

PARIS, January 28.

The inter-Allied Conference this morning devoted itself to attempts to smooth out divergent points revealed in consequence of the French Finance Minister's speech on Wednesday. M. Doumer's speech occasioned surprise, particularly when he advocated the immediate fixing of Germany's identity at about 200,000,000,000 gold marks (£10,000,000,----000), which is about double the amout proposed at the Boulogne Conference, held in June.

Mr. Lloyd George at the afternoon session, defined Britain's reparation policy. He said that it was useless for the Allies to try to extract more than Germany could pay. Nevertheless, it was to the interest of Britain, Belgium, and France alike to extract the uttermost farthing. Though France had suffered most in human loss and suffering, Britain carried the largest financial burden, her war costs aggregating £10,000 - 000,000. The real difficulty arose in determining how to compel Germany to pay. She easily could pay in marks," but her paper money was of little value outside Germany. The only way in which she could pay the idemnity was by exports. Some of her best customers were unable to buy; also, it was true that if Germany exported too much to the Allies the industries of the Allies would be ruined. Nevertheless, there was a real margin within which Germany could pay. Experts had studied the problem for months. "I am willing,'' said Mr. Lloyd George, "that their proposals should be criticised, and improved, upon, but a mere adjournment would only set us back. I hope tie French Government will accept the Boulogne agreement as a basis of eettlement."

CHAOTIC FINANCES. Mr. Lloyd George went on to say that UL Doumer's figures were justifiable morally, but he did not believe that experts would find them practicable. The Allies must use all the authority allowed to them under the~ Versailles Treaty to make Germany put herself in a position to- pay. She was not doing this at present. Her financial affairs were chaotic. Her revenues did not approach her expenditure, and her citizens were not even taxed to the same extent as those of the Allied countries. No doubt this was done to improve her bargaining position. The Allies must see that Germany imposed on her people burdens at least as heavy as those borne by the Allied peoples. The German people must make the same economies.

The Belgian and Italian delegates supported Mr. Lloyd George in maintaining that the Allies must not now depart from the Boulogne and Brussels agreements.

M -Briand, the French Prime Minister, ■peaking after Mr. Lloyd George, said that, according to the Boulogne agreement, France should receive 65,000,000,000 marks (£3,250,000,000). France's external ' debt amounted to 25,000,000,000 marks (£1,250,000,000), and the difference would not enable France to repair her war-devastated areas. He cnuld not agree to make such a sacrifice. He asked the conference to fix the annual payments to be made by Germany, and later to examine Germany's total liabilities. The conference will again consider the reroration question to-morrow. —A. and S.Z. Cable.)

HOPE FOR FINALITY. IXOYD GEORGE OPTIMISTIC. (Received 3 p.m.) PAItfS-, January 28. It is understood that the conference is considering a scheme requiring Germany to pay the annuities agreed to at Boulogne plus an annual tax of about 12 per cent on the German exports. The impression prevails that finality is likely to be reached.

Mr. Lloyd George, addressing a party of journalists, said he was hopeful of getting substantial reparations before the conference concluded. Definite proposals about Germany's ability to pay ■would be formulated. England was no less interested than France, because England was the most heavily taxed country in the world. The trouble was that everybody wanted gold which Germany had not got, and they would not take German goods. Hβ believed there would be no difficulty about disarmament. There was no use advancing millions to Austria. The fact was she was bow a small State unable to bear the eoet of such a capital as Vienna. England had already advanced millions to -Austria. France was under such heavy taxation burdens that she could not mipply millions to Austria.—(A. and N.Z.)