DEVASTATED AREAS.

Press, Volume LVII, Issue 17317, 1 December 1921, Page 9

DEVASTATED AREAS.

A FRANCO-GERMAN AGREEMENT. (FBOM OUB OWN COBBSSPONDBNT.) LONDON, October 14. A Franco-German agreement signed at Wiesbaden last week baa been published .in Paris. The agreement is the result of negotiations between -Mons. '/..oucneur and Dr. Rathenau, and will render it possible., for France to reconstruct her devastated area much more speedily than if she had to await the slow payment of the instalments due from Geiniaiiy. It will to a great extent <nsure France against the possibility that if Germany should really declare herself insolvent; Frauce would herself hav e to pay for the reconstruction of the devastated departments; it will pl'ice badJy needed resources at tne disposition of D'rauce iuuch more speedily tna,n would be the case if she mm to wait to obtain tueui until tue complicated luecnanism lor the conversion of the uermun leparation bonds into ordinary caso. has been got into working oi-aer. in principle the Wiesbaden agreement ensures that Germany snail iuihlsh as requu ed oy 1' ranee, uetween n«w and May Ist, lUid, such merchandise of all kinui as the country may require tor tht> purpose of reconstituting her devastated' department. The total amount of goods thus supplied shall,not exceed during the live years covered by the agreement a total value of Beven thousand million marks gold. Tne price ai. w.iich these goods shall be delivered to France is not to be higher than that at which they could be obtained m France, after taking into account the French cuttoms duties, based on tho tariff in force in 1914, multiplied by an agreed coefficient, and after having regard to cost of transport as far as St. Quentin, which city has been | selected for this purpose owing to the fact that it is in the centre of the devastated area. , ~ i Pavment for the merchandise so furnished from Germany will be made to its own nationals by the German Government, which will debit the French Government witK the agreed value of the goods as being part payment on account or 'the amount due by Germany to France in respect of reparations. As matters at present stand Germany has agreed to pav the Allies 3,200 million marks d'unng 1922 on account of reparations, of which France's share would be 62 per cent., or 1,6c4 millions. Let us suppose that France during 1922 received from Germany the sum of 330 million marks gold, which fche would have to pay in cash. By the Wiesbaden agreement this surplus of 336 millions will not have to i*o paid at all, but would be debited by Germany to France as an advance payment in respect of the sum due for reparations for 1923. The advantage to the French Treasury of such an arrangement is obvious. It is anticipated that ihe Wiesbaden agremens will accelerate ihe restoration of the devastated area by two years. Materials furnished by Germany under this agreement, it 'a provided, can only be utilised for tKe devastated area. This urgent necessity; for the reconetitution of the devastated departments is, indeed, the bar is of the wh"le agreement. It will be noted that there is no mention of -Set-man labour in the agreement that has now been signed. From the Trade point of view, however, the result is to a great extent the same, as German labour rather than French will now b-j largely employed in providing the materials for the reconstitution m tne devastated area.