NEW BASIS

Auckland Star, Volume LII, Issue 59, 10 March 1921, Page 5

NEW BASIS

LIKELY TO BE OFFERED BY GERMAN DELEGATION. SUSPENSION OF EXPORT. IMPOSING FURTHER PENALTIES (Fy '":.'_. .'. -Press Association.—Copyright. il>.-cii cd 11.:;.. a.m.. LUXDOX, March P. 1 he Berlin correspondent of the "Petit rari>ten" states that there are indications that t.ermany will seek to resume :■• gotiattons on a new basis. Experts are cioiMdrring t:ie Finance Minister's new iiMiHisiii.-. It is expected that Dr. \oii f-.iiion.- \\'.,\ uiTer nis resignation, which will be r.'fu»ed. The batiks in view of the economic -naities. arc considering the transfer of deposits from Allied to neutral countries. Many manufacturers have suspended exports to Western Europe. M. Downer, French Finance Minister. who has returned to Paris from London, declared that the Allied Rhine Customs was one of the most efficacious forms of coercion. The Allies would now seek to apply the Treaty and to abolish the concessions. A bill has be»>n drafted to deal with levy on imported Herman goods. It will be examined by French, Belgian, and Italian experts with a view to similar measures in their respective countries. The Conference was notified that the Rhine towns were occupied without incident. Members compared notes on the second sanction, relative to the action to be taken regarding the recovery of a proportion of the payments on German soods. The Allied Rhine Commission will report in regard to the third sanction. It was decided to hold the Customs receipts on behalf of the Reparations Commission.— (A. and X.Z. Cable.) AMBASSADORS RECALLED. A MARK OF INDIGNATION. LOXDOX, March 9. The German Ambassadors here and at Paris are leaving for Berlin to-night to discuss with the Cabinet the situation arising irom the Allies' decision to impose the reparation penalties. Although it is generally understood that the Ambassadors have been recalled merely for consultative purposes, the Berlin correspondent of the "Daily Xews" states that the action is a sign of German indignation. It does no* amount to a rupture of diplomatic relations, but the iTerman Government considers that ambassadorial relations are inconsistent with the new situation, and that subordinate officials can discharge the requisite functions. The correspondent indicates that an undercurrent of Cerman jubilation is due to the belief that Germany has scored. Ec adds that the arrogance of the Ludendorffs, Stinneses, and Tirpitzes waxes, while the influence of the modern Socialists is waning. The Chancellor. Dr. Fehrenbach. in a speech in the Reichstag, said that the --.Hies 1 sanction-- were merely illegal acts of violence. The Allies had only created further embarrassments for themselves. A strong belief exists in London that Germany will soon produce proposals leading to a settlement of the reparation issue. She may. however, await the result of the plebiscite in I/pper Silesia. Dr. Simons energetically spread this idea before his departure with the German delegation to-day. He forecasted that negotiations would be reopened before many days. "Perhaps the conference will not prove so barren of results as is now thought." was the topical sentence he scattered among his interviewers. Dr. Dresschler wus similarly active and full of thanks for British hospitality. He declared that Germany *vvishes to submit a new proposal to the Labour opinion of England. It appears that the German Cabinet was preparing a proposal for submission to-day. but Mr. Lloyd George ahd promised M. Briand tluit the penalties would operate if the Allies' last proposal of 30 annual payments and a 30 per cent tax on exports was not accepted. Otherwise M. Briand's Cabinet would have fallen and France would have rejected the scheme.The populations of Dusseldorf. Dnisburg, and Ruhrort are calm and ajert. and are silently watching the trend ot events. Two strikingly different proclamations are displayed in Dusseldori and Duisburg. One is issued from the Wilhelmstrasse. Pointed on red paper and signed by Herr Ebert. the President it is inflammatory and pours invective, and evokes the wrath of Germany acainst the Allies' unreasonable reparation claims. The other proclamation is =itmed by the Burgomaster of each town and is a warninc to the populace to be calm. — fl"ni'.?d Service.) AMERICANS TO R»'MATN. PEACE MOTION TO STAND OVEB XEW YORK. March 9 The Washington'correspondent of the Xew York "Times"' states that although Mr. W. G. Harding promised during his campaign the immediate withdrawal oi American troops in occupied regions ol 'Germany. Mr. J. W. Weeks. Secretary of War. has announced that the troop? will remain, the 'Jovernment not con sidering the present time opportune for their withdrawal. It is felt that the Allies might misconstrue their with drawal in view of the ■ Allied advapct into Germany. It is also thought that Mr. P. C Knox's resolution in the Senate, declar ing a separate peace with Germany which was to have received immediate attention, will be held in abeyance pend ing the outcome of the Allied advance.— iA. and X.Z. Cable.) GERMAN ORDERS CANCELLED HEAVY FALL IN EXCHANGE RATE. ■ Received 12.30 p.m.i LOXDOX, March 9. The Berl.n exchange rate has fallei heavily. The pound sterling is quotec now at about 350 marks, as compare* with 241 marks on March 3. tThc pal value of the £ is 20.43 marks.) It is reported that British merchant! are orders with German firms lA. and X.Z7 Cable.J .