GERMAN REPARATIONS.

Auckland Star, Volume LIII, Issue 137, 12 June 1922, Page 5

GERMAN REPARATIONS.

NO INTERNATIONAL LOAN. ATMOSPHERE UNFAVOURABLE. DEMANDS OF FRANCE. IMPOSSIBLE TERMS. (By Cable.—Press Association.—Copyright.) LONDON, June 11. The committee of international bankers convened in Paris for the purpose of considering the llotation of a loan for Germany adjourned yesterday, having reached the decision that, for the time being, it could not usefully continue its deliberations. An olHcial report states that as soon J as the bankers met yesterday they came to the unanimous opinion that they could not, within the limits of their terms of reference, understood in the more restricted sense, oiler any prosp.ct of an international loan. They decided that, for the thue being, they could not usefully continue their deliberations in response to the invitation of the majority of the Keparation Commission because: — 1. France is Germany's chief creditor, and the bankers are all extremely anxious that no action of theirs should injure France's interest. 2. The committee considers that a. favourable atmosphere is essential to the successful flotation of a loan, ami iho known differences of view anion*,' the members of the Keparation Conimis sion regarding the limits of the committee's mandate have created, for the time being, an unfavourable atmosphere for the issue of such a loan. The committee, although obliged to express an unfavourable opinion regarding the possibilities of a loan in Germany's present situation, declares its conviction that if conditions necessary for a revival of Germany's credit were to be realised substantal loans could be successfully floated in all the principal markets of the world. The committee considers that financial conditions are now more favourable for , the issue of such loans than at any other time since the war. The committee assures the Reparation Commission of its strong desire to help the issue of such loans. Therefore, if the commission unanimously renewed the invitation now made by the majority only, the committee would lie happy to resume its deliberations i)ow interrupted. All the members of the committee, except the French, signed the report. The Paris correspondent of the "Daily Express" states that the committee of bankers is adjourning for three months. The committee suggests as essentials to a German loan: — 1. Reduction of Germany's indemnity by half. 2, Lenders to have priority of rights over all other claimants in respect of customs and other German security.

3. Germany to receive half the amount of the loan.

-1. Germany should not be obliged to pay any part of the indemnity for three years and should have power to control her own finances, including taxation.

■ France nuts forward impossible terms for the acceptance of these proposals, namely, cancellation of all war debts due to the United States and Britain, nnd cancellation of the British snare of Germany's indemity. France argues that Britain has had a fair share in the seizure of the German navy, the destruction of Germany's mercantile marine, and the transfer of German colonies.

The Paris edition of the "Chicago Tribune" states that the failure of the Allied Governments .to reach a unanimous agreement on the scope of thci committee's authority is the main cause of the adjournment of the committee Mr. J. Pierpont Morgan furnishes another reason, that no great international loan would be very successful in the United States until next spring. (A. and N.Z. Cable.) A GENERAL SETTLEMENT. ESSENTIAL TO A LOAN. (Received 1.80 p.m.) LONDON, June 11. Mr. J. P. Morgan, interviewed prior to his departure, believed that settlement by an international loan was not possible without a general settlement of the reparation question, and only as part of such a settlement. There had been no discussion of capital amounts, but only of a. possible arrangement of annual payments. The latter, in cash or kind, provided the only means whereby Germany could pay her debts. — (A. and N.Z. Cable.) A LIGHT-HEARTED VIEW. NO NEED FOR REFORMS. (Iteeelred 2.30 p.m.) BERLIN, June 11. The "iAllgemeine Zeitung" states that tihe failure of the Bankers Com.-nittee in Paris has created a very critical situation for Germany and for Europe. Other newspapers take a less serious view, suggesting 'that the Government need not now carry out the reforms promised, to the Reparations Oonrmitssion or stop the printing of notes.—(A. and N.Z. Ca<blp.)