GERMAN REPARATIONS.

Auckland Star, Volume 55, Issue 49, 27 February 1924, Page 5

GERMAN REPARATIONS.

AGREEMENT WITH BRITAIN. IMPORTERS SAFEGUARDED. LONDON, February 26. In the House of Commons. Mr. Graham announced that an agreement had been reached with Germany whereby the rate of the British reparations levy on imports from Germany would be reduced from 20 per cent to 5 per cent from February '2G. Germany agrees to compensate " German exporters later, and make it a punishable offence to charge any part of the levy to the British importer. Customs receipts respecting imports prior to February 26 will be reimbursed by Germany in gold bonds. The "Financial Times'' explains that the German reparations Recovery Act. 1921, which it is understood Mr. Ramsay MaeDonald intends to repeal, provided for the collection of 26 per cent duty from the British importer, who was repaid by the German manufacturer who, in turn, was reimbursed by the German Government. This continued as long as the German Government honoured British Customs receipts, but last November Germany refused to continue the payments. Consequently, the British trader importing German goods has been in the unhappy position of paying part of the German reparations to the British Government. It is understood that as a result of the agreement British traders will receive £1,000,000 reimbursements. British traders recently have been demanding a solution of the deadlock. On the other hand, Sir Robert Home. ex-Chancellor of the Exchequer, who lately has been warning the Government that the future German settlement will seriously affect the British steel industry, describes as extraordinary the announcement that it is intended to repeal the Act. He adds: "The ultimate effect will be to swamp the country with German goods. The state of exchange will for a. time at least enable the Germans to undersell us. Moreover, the Germans are working longer hours and for less wages than British workers. There is no doubt German competition will be more severe than Britain has before endured.— (A. and N.Z. Cable.)