EFFORTS TO SETTLE REPARATIONS ISSUE

Bay of Plenty Times, Volume LII, Issue 8635, 16 July 1924, Page 5

EFFORTS TO SETTLE REPARATIONS ISSUE

EXPLANATION' BY BRITISH PRIME MINISTER. By Tel. —Press Association, Copyright I{enter's Telegrams. Krc July 16, 8-5 a.in. London, July H In the House uf Commons, Mr Ramsay MacDonald (Premier) said the question of whether tin 4 Dawes report sought do. impose on Germany obligations not legally within the interpretation of the treaty of Versailles. ought to* be reported on by legal experts to a conference. France had come to regard the Treaty of Versailles as something akin to an Ark covenant. Any suggestion to put it aside aroused amazing fear. A similar feeling is entertained as regards any suggested modification of the operation of the Reparations Commission. We must, however, be most careful* France did not extend legal provision to the treaty. With reference to the probability of American partic ipalion, he said practical difficulties alone prevent an official appointment at present. The only thing so far clear was if there was going to> be an American on the Reparations Commission, France must insist on an extra appointment to tho Commission by reason of the fact that the experts’ report could only be put into operation on floating a- loan of .£40,000,000, his duties being confined to the safeguarding of creditors. With reference to the alternative arbitration proposal it must! be remembered that the reparation agent has at command every conveivable particle of information enabling him to give Judgment whether there be wilful default or not. The language of the White Paper was left purposely vague- The minimum they were seeking was satisfactory security for the creditor. The Spa agreement would certainly not be recognised at the London Conference. He was most anxious that these questions would, not be quarrelled about, preliminary to the Inter-Allied Conference, at which the Dawes report alone would be considered and put into operation. Tlie Reparations Commission was political rather than Judicial. Certainly. as regarded the Ruhr Commission, that had been scrapped and subsequent action taken net by the Reparations Commission,; but by Governments, acting not togethbut on their own initiative 1 , The 'undermining of security by political 'acton was the problem to be faced- The position he took up was that the creditor should have security which would be .satisfactory to him. The preparation of the programme for sanctions would only moan giving Germany a warning ns to how, in the event of default, she would be; punished. All that could be hoped was that the Conference would be regarded as a nonrecurrent. opportunity not only to the Allies to. re-unite, but to unite on the work o fpacifying Europe^

Mr Austen Chamberlain criticised what he described as Mr MacDonald’s errors. He outlined a policy which he recommended for consideration. The Premier said they should : Firstly, accept the upholding of the Versailles Treat}, as the only possible! basis of public law in Europe: secondly, make the maintenance of the Entente with Franco the cardinal object of the policy ; thirdly, make Genhany ’s observance of her obligations no less a cardinal feature, and in return, if Germany accepted and loyalty fulfilled the obligations now presented, be prepared to respect Germany's integrity and welcome her back to the comity of nations. He suggested that! another Dawes Committee be appointed by the Reparations Commission, which might be a hopeful way of securing the results desired bv the Foreign Office. The vote was agreed to and the debate Terminated. BRITISH EMPIRE (ICARANTEE.

The Times. Eec. July IG, 8.5 a.m. Lomlou, July 15. The Times draws attention to the suggestion of Mr Asquith in the House of Commons that Britain, with the approval of the Dominions should guarantee both to France and to Germany, the use of all the British Empire s powers against either State which quarrelled with the Allies without appealing to the League of Nations, the_guarantee being extended to all members of the Leatrue. The Times thinks it is unlikely that the Dominions will at present agree to the proposal*