REPARATIONS REPORT.

Auckland Star, Volume LVIII, Issue 150, 28 June 1927, Page 7

REPARATIONS REPORT.

Germany's Outlook Not Too Bright. ■ i i THREE YEABS' PAYMENTS. BERLIN, June 18. Germany has paid £15730,000 in reparations since the Dawes Plan became effective in September, 1924, until Mav 31, 1927. This fact is announced by Mr. S. Parker Gilbert, Agent-General for Reparations, in his first big report for the year 1927. The report reviews thoroughly the course of Germany's economy during the past six months, and, for the first time, warns the German Government that it must curtail its expenses and reform its Budget methods, which "carry danger for the future." A sugar coating is applied with the warning by the words: "Germany has continued, loyally and punctually, to make the agreed gold mark payments.'' Tho report says that the progress of Germany and of Central Europe has been steadily upward, although by no means free from difficulty, and that heavy unemployment continues. Notwithstanding substantial reductions during recent months, the evidence points to increased production and con sumption and wire improvement in the standard of living.

Savings increased by £100,000,000 dating the six months ended April 30, 1927, but are still only 20 per cent of pre-war volume. Despite the recent Bourse panic, the report expresses confidence in the R-Mchsbank as the guardian of the German exchange, the bank having ample- resources and authority.

The stability of German currency remains sure.

The national debt has doubled during the period 1924 to 1927; therefore, »he Government is pointedly requested to take normal precautions in its own in terest.

The report expresses anxiety regarding the German trade balance, the country being a heavy loser during the last few months.

Although the report recognises the ability of German industry as a whole to enlarge its markets abroad, it expresses doubt whether the "great volume of imports shows a corresponding growth

in exports." It suggested that "Germany recently has been over-developing internally, without showing a progressing ability to compete in the markets of the world — so necessary for the development of foreign trade"—from which reparations arc paid.