REPARATION PROBLEMS.

Press, Volume LVII, Issue 17318, 2 December 1921, Page 8

REPARATION PROBLEMS.

THE LONDON CONFERENCE. REPORTED GERMAN PROPOSALS. <By Cable—Prow Association—Copyright.) (Anstrfuiiiii And **. Z. C&bl£ Association.) (Received December Ist, 10.10 p.m.) LOXDOX, December 1. It ifi understood that Dr. Rathenau took striking proposals to London. It i* presumed he is engaged in frankly urging the British Government to drop definitely all demands for reparation payments in money or kind, and to jigreo rather to consider schemes which would advance British economic interests. thus achieving what payments would not do. The scheme doubtless includes, firstly, the exploitation of Russia by Britain and Germany, secondly, the utilisation of German labour and mechanical skill in oversea colonial enterprises. The moratorium question is regarded as a bide issue in the negotiations. Dr. R-athenau's success would strengthen the Wirth Government alike against tho reactionaries, and the industrial magnates under Herr Stinnes, who persists in pressing anti-democratic conditions before agreeing to help the Government to raise credits to meet reparations. BERLIN, November 30. Horr Hugo Stinnos reported on his vist to London to a meeting of tho Imperial Union of German Industries, which decided to adopt the proposal of the Chancellor, I)r. Joseph Wirth, and appoint a committee of six financiers and industrialists who are in touch with English and American economic circles, with a view to opening credits, not merely to assure the January reparation payments, but to find new methods of payment, and toplace Germany in a condition where default would be impossible. (United Serrice.) LONDON, November 29. Tho "Daily Mail," in a leader, says a postponement of German reparation instalments will cause a heavy deficit in the British Budget. The modifications may result in a benefit to British trade, but experts must decide whether the taxpayers' lc6s in one direction will lie made up in increased revenue receipts in another. . The "Pall Mall Gazette," which is usually regarded as representing the Prime Minister's viewpoint, states that Mr Lloyd George is preparing to take the lead in proposing a new financial policy, including an entire revision pf the reparations provisipns of the Treaty of Vereailles, in order to reestablish the world's markets, including those of Germany. He hopes, when af. Washington, to take up the whole question of the world's indebtedness. The Paris correspondent of "The Crimea'' reports that, so far, France refuses absolutely to consider any hypothesis for a postponement of the reparation payments, and will persist in her refusal unless it can be clearly shown that the operation of the international credit scheme will give the creditors a full equivalent for what a suspension of payments will take from them. The French point out that they are the largest creditors, and deserve some consideration. If the payment of the instalments duo will increase the deficit in the German Budget, nonpayment will make wider the gulf whioh it was meant, such payments should bridge in the French Budget. "The Times" in a leader says:— "The old story of Germany's inability to meet her reparation engagements is being repeated in London with growing vehemence as pay day approaches. It is alleged that her power to pay the January and February instalments depends on obtaining Allied loans. We are returning to the old German claim that the Treaty of Versailles must be revised. The best outside opinion holds that Germany not only is well able io pay . the next instalments, but also possesses vast hoards of wealth abroad. It is Germany's business to make the owners of this wealth disgorge. The Allies are not concerned with the methods. All they have to care for is punctual payment. It as Germany, not Herr Stinnes and other multi-millionairoß, who are indebted.to the Allies. It is against Germany they have a remedy in case of default." (Reoeived December Ist, 10.45 p.m.)* LONDON, December 1. According to the "Westminster "Gaeette," London financial experts do not consider a moratorium is the best solution of Germany's reparations problem. ...They favour a long term loon, with interest at A per cent, free* of tax, and repayable in forty-two years. It, is possible Geinnany may arrange credits to pay the January and also the February instalments, if the French insist, though it is certain that payment will produce a further fall in the mark and a rapid decline in the value of the franc. It is considered that the continuance of such reparation payments is sheer madness, not thinking primarily of Germany, but qi the effect on the Entente countries. A moratorium will only postpone the crisis and further depreciate German' credit. A loan would give a period of grace which would help to reestablish equilibrium. ATTITUDE OF FRANCE. PABIS PEESS COMMENT. PARIS, November 30. The French newspapers continue their criticisms of Mr Lloyd George's "diplomatio offensive." The "Matin" says his programme iB already partly known to the French Government, which is carefully examining it to tee if the interests of France are harmfully affected. The "Matin" adds that it wii on Lord d'Abernon'a suggestion that Mr Lloyd George drew up the plan. The former considers that the Allies must accord Germany a moratorium, the first condition being the | re-eßtablishment of the equilibrium of the German Budget. The French Government asks for new guarantees before the question of a postponement of payments is even considered, and inclines to favour the establishment of a commission aVßerlin to control the German, finances as the only adequate • guarantee. »_lt is, regarded,.as tibb thai Great Britain and Germany

should negotiate in the absence of France, the principal creditor. The newspaper "Eclair" blames British policy for tho anarchy in Eastern Russia, the disorder in Central Europe, and Germany's resistance to the Allies' demands. The paper says it is high time that the British people were made to see that their interests aro identical with those of France. There is grave danger of the present trend of affairs ending in world-wide Bolshevism. The "CLuVre" comments severely on what it describes as the financial ultimatum from Great Britain to France. (Received December Ist, 10.10 p.m.) PARIS, December 1. There is a feeling in official circles that France should have been oensu'ted before Dr. Rathenau visited London. Mr Winston Churchill's speech may clear the situation. The "Temps" notes appreciatively Mr Churchill's declaration that England cannot make friends with Germany at the expense of Franco. PRESENT SCHEME IMPOSSIBLE. BEITISH ECONOMIST'S VIEW. (Australian -ir.fi N.Z. Cabl» Associ&idon.) liOXI>ON, November 30. •Sir George Puish, who was adviser to the Chancellor of the Exchequer and the British Treasury on financial and economic questions from 1914 to IDl<3, speaking at" the National Liberal Club, said the present reparation scheme was impossible. He suggested that the League of Nations should summon a conference of bankers and financial experts of the world. He declared that statesmen had been afraid to admit how they had misled the people into imagining that unlimited sums could Ixs drawn from Germany The British people now realised this was impossible. Unfortunately, France was still living in a fool's paradise. Germany could not make even the reduced payments fixed at the Spa Conference. If, as a result of non-payment, the Allies occupied the Ruhr, seized Germany's Customs, and controlled her finances, it would lead to the destruction not only of Germany, but of ourselves, and of the whole world. Germany could not make any payment until Europe was restored. Then she could make moderate payments. Formerly, he had believed she could not pay more than £50,000,000 a year. Now he believed she could pay £IOO,000,000, which, reasonably capitalised, n'ou'd provide France with £1,000,000,000, which would be adequate to re-1 store the devastated areas, but this entailed the restoration of Germany's markets and her readmission, to the society of nations, STABILISING THE EXCHANGES. OPINION IN WASHINGTON. (United Serrioe.) LONDON, November 29. The special representative of the United Service at the Washington Conference states that he has ascertained, on undoubted authority, that. America will Join the other Powers in an attempt to stabilise the international exchange. The Allied Governments have invited the United States to appoint a representative on the committee appointed by the Reparations Commission to examine the international exchange problem, , and obviate a shock I occurring when Germany fails to pay reparations or makes her regular payment. The American representative will attend a meeting of the committee,, whioh will probably sit at Paris in December. Though this relates on}y to international exchange, it, will lead later to important developments and possibly to a oonferenoe at Washington, at which final conclusions will be reached. The correspondent adds: "It is certain that the war debt question will not be raised at the Disarmament Conference."