GENOA MEETING.

Press, Volume LVIII, Issue 17431, 17 April 1922, Page 7

GENOA MEETING.

BASIS OF EXCHANGE. A TENTATIVE AGREEMENT. (By Cable—Praia Aisociition—Copyright) (Australian and i\'.Z. Gable Association.) LONDON, April 14. Tlie Australian Press Association's representative at Genoa 'states that the Finance Sub-committee has made good progress, especially with the question of exchange, on which point a tentative draft has been prepared to fix the f.tandard of exchange, according to the financial position of the various countries requiring assistance. Italy is quite prepared to accept the standard suggested for her and will balance her Budget accordingly. France objects to having her standard fixed. The committee is unable at present to arrive at a basis for Germany owing to the reparations. There is a suggestion to provide an. international loan to enable her to recoup France for what the latter expended in restoring the devastated area, Germany to pay interest annually. If something of this sort is done it will pave the way for fixing the German exchange. The Germans and Russians submitted amendments. The former's are not by any means .revolutionary. The French delegates are quite satisfied with them. Herr Hermes explained that it was not sufficient to balance the internal budget: they must balance the external payments, which would probably include the cost of army occupation but not. reparations. The French deduce from Herr Hermes's speech that Germany i| agreeable to leave reparations outsido the orbit of Genoa. The Russian amendments were numerous, but are mostly academic, except one asking for a special loan. Anothe? suggesting a division of the world's gold is regarded as a joke. The French regard M. Radowsky's optimistic financial statement as. forceful. Even Russian experts estimate the Russian deficit at 800,000,000 gold roubles. A prolonged informal discussion between Mr Lloyd George, M. Barthou, M. Theunis, M. Tchitcherin, M. Litvinofi", and M. Krassin was held at Mr Lloyd "George's villa. It lasted throughout the day, and is expected to occupy nil Saturday. The conversations turn on certain points in the experts' report, which the Russians desire elucidated before framing their reply. It is therefore unlikely that the First Commission will resume its deliberations before Tuesday. Geranar.y has accepted as a whole the Allied experts' financial proposals) but insists that reparations must be considered, in balancing the national budgets. Sir Basil Blackett, Controller of Finance; British Treasury, called a committee of financial experts together today to evolve a basis for argument. The Committed *vill report to the Financial Committee of the Conference on Saturday.