GERMANY'S DEFAULT.

Auckland Star, Volume LIII, Issue 308, 29 December 1922, Page 5

GERMANY'S DEFAULT.

FRANCE READY TO ACT.

WILL CONSULT BRITAIN FIRST.

MAKING COMMON CAUSE.

(Ej , Cable—Press Association.—Copyrlgfi:>

(Received 10.3(1 a.m.) PARIS, December £S. Che I'aris "Matin,"' commenting on Germany's default, says that France is desirous of acting in full accord with th<; Allies, but if a divergence of views occurs regarding the sanction*, France will act alone, taking measures necessary to ensure the execution of the plan already prepared.

The "'Petit Parisien" says that only in the improbable event of the Allies refusing to draw just conclusions from the situation will France be driven to act alone.

The "Journal ,- says that M. Poincare will probably do nothing until ho has placed the position before Mr. Ttonar Unv and apj>ealed to him to make common cause with France. The Reparations Commissiou makes no suggestion leaving the Allies entirely free to follow or disregard the indications contained in tlic report.— (A. and XX Cable.) LACK OF UNANIMITY. BAD OMEN FOR CONGRESS. LONDON, December 28. The lack of unanimity in the declaration of Germany's default by the Rcpiirution Commission is regarded in I'aris as a bad omen for the forthcoming conference. It is stated that if the Allies rcfusi! to endorse tho French proposals France will .act alone. Experts'are of opinion that M. Poincare is heading for a position similar to M. Briand's when the Cannes Conference opened, and thinkthat he is tiring of the struggle and will retire in the event of failure if presged. — (A. and NX Cable.)

CANCELLING THE DEBTS. DEMAND BY ITALY. LONDOX, December 28. Government newspapers in Italy state that Signor Mussolini will not attend the Paris Conference owing to the failure of the Allies to agree On a. decisive programme Signor Mussolinf holds tlint reparations pan be reduced only if the Allies cancel the debts one to another. Since tin- London Conference Britain has modified her view of the terms on which the debta might be cancelled to such an extent that the whole scheme seems to have been shipwrecked. Therefore Signor Mussolini considers that discussion on the moratorium proposal is a waste of time. Tiic Pome correspondent of the "Daily Telegraph' , exprrtiees the opinion that the announcement of Sismor Mussolini's decision not to attend the Paris Conference may be designed to obtain a positive promise for Britain to canrel her claims on ltalv.—(A. and X.Z. Cable.)

GERMANY'S LATEST OFFER. BERLIN". December 28. The Herman Cabinet proposes to inform the Allies that if Germany's responsibilities are definitely fixed, industrialists and merchants will guarantee a loan carrying the moratorium over a number, of yours. A foreign loan will also be raised to lie devoted to the payment of reparations to France and Belgium.—' (A. and X.Z .Cable.)

The French attitude is in -pursuance of the jiolii-y recently announced by M. Point-are after tln> visit of a commissioner, M. Dariac. sent to investigate the economies and industry of the Klrine Province. The report was not published in France, though it was the basis of XI. Toincaie's policy speech, but it was given publicity in England this

mont'li. M. Dariac says: "The feature of this region of occupation is its very accentuated industrial character, which make* of it a pledge in our hands of quite the first importance for the recovery of tin? sums which Germany has undertaken to pny us. In existing circumstances, indeed. the Rulir. and in particular the region of Dussoldorf, Duieburg. 'Ruhrort. which we are uocupying, and which forms its head, constitutes the principal clement of German wealth, which is based entirely on iron and coal, their transformations and their derivatives. The majority of the f>rrat German consortiums have heen formed ther?, have their headquarters and their establishments there, and the ten or twelve industrialists who direct them rule, directly or indirectly, but absolutely? the economic destinies of Germany. These men play in Germany the role that Carnegie, Rockefeller ami others played in America, hut they carry on a political activity unknown anions tin- American billionaires, M. Dariac declares. They have, he acknowledges, offered to take on themselves the burden of reparations, but on unacceptable terms.

Franre has it in its power to disorganise utterly the whole industry of the Ruhr. He visualises a 'bankrupt Germany after which the products of ■the Ruin- would simply be turnad into France, and wou'd re-estaiblieh the Customs barrier fixed in proportion to the Teater or less goodwill of Germany to acquit herself 'by other means. Another means, he suggests, if Germany •proves dilatory, would be '"to impose a participation of the State in the profits of the exploitation of the capital represented by the great industries: the compulsory creation of share* representing for each enterorise one-fourth or onefifth of its capital, and their assignment to the German Government, under the control of our Committee of Guarantees, would, for example, constitute an easy levy on t'h:e capital of these industries, of which we should then have every interest in facilitating the development. Another conceivable method would 'be lor these securities to serve a* the bac" of an international loan- whicii *voi3ltl at once relieve tite- finances of tie Allies simultaneously with those of the Germans." He asserts: "We cannot demand that Germany shall pay enormous sums for 35 yeare.. ana , on the other hand we are afraid of seeing her industries develop in the proportion which would permit her to assure the payment of the debts which she has acknowledged. But so long as we are ou the right bank of the Rhine land are masters of 45 million tons a veer of ore we shall be in a position to play a decisive part in the German metal industry, demanding a control of production in return.