FINANCING WAR.

Auckland Star, Volume LVIII, Issue 152, 30 June 1927, Page 7

FINANCING WAR.

REMARKABLE SCHEME

Alleged Report Of League

Committee

"SHEER TOLLY."

(By Cable—Press Association.—Copyright,)

LONDON, Juno 29. An unpublished report is referred to by the diplomatic corm A . jndent of the "Daily Telegraph" prepared by the finance committee of the League of Nations with proposals made by France, Poland and Finland. The scheme is the establishment of a common -"heme for financial assistance in support of the State which may be the victim of aggression. Tho "Telegraph" expresses the opinion that the report makes extraordinary reading from the point of view of British taxpayers. It proposes that a guarantee convention should be established, the trustees of which should be authorised to raise loans on a basis of guarantees by the various Powers. The committee i uggests that the guarantee to be allocated for each signatory State should be fixed on a basis of that State's contribution to the Leagu". Thus the British Empire, which contributes 25S units t of the League's budget (whereas France'and Germany only contribute 79 units) would bear the greater part of the burden. If the guarantee fixed were £50,000,000, the Empire would have to contribute £13,000,000, and France l«ss than £4,000,000. Moreover, certoin financially-strong signatories would be asked also to give super-guarantees and to undertake to facilitate the public issue of loons in their own countries. The paper says it would be sheer folly to expect the Parliaments of the British Dominions to pass such measures.—(A. and N.Z. and Sydney "Sun.")