REPARATION PROBLEM.

Press, Volume LVIII, Issue 17625, 30 November 1922, Page 8

REPARATION PROBLEM.

NEW FRENCH SCHEME. INTERNATIONAL LOAN FOE GERMANY AND FRANCE. (By Cable —Press A?«ociat : nr.—Copyright.) (United Service.) LONDON, November 28. An international loan, floated by world financiers, and to be divided between Germany and France, is according to the Paris correspondent of tho "Daily Mail," France's latest reparation scheme. It also proposes a moratorium for Germany for five years. The Flench share cf the lean will be in lieu of German payments, while Germany's share will be utilised to stabilise the mark and industry, and enable her to discharge her obligations. 'lhe scheme provides for the cancellation of all French debts to the Allies for the purchase of "war stores, France agreeing to cancel all Allied debts to her. The "Daily Mail" says that a high London financial authority considers the scheme impracticable, and that it is impossible for Great Britain to carry it out without bankruptcy. The article points out that, if Germany is granted a. moratorium, she will not need a loan. (Australian and N.Z-. Cable Association.) PARIS, November 28.

The Berlin correspondent of the "Petit Parisien" says Government circles have abandoned the idea of seeking an immediate foreign loan of twenty milliard gold mark 3, and have decided to seek half a milliard, together with a three or four years' moratorium, in order to stabilise finance and enable a larger loan to be borrowed later.

FRANCE AND THE RHINELAND. REPORTED DECISION OF MINISTERIAL CONFERENCE. PARIS, November 28. It is now confirmed that M. Millerand presided yesterday over a secret conference, attended by M. Poincare, M. Biirthou, and the chief Ministers, and Marshal Foch, and other military chiefs. The conference discussed what action should be taken in the event of Germany's continued failure to meet her reparation obligations. It is understood that it waß decided that, if the Brussels Conference ended unsatisfactorily, France would seize the occupied Rhineland provinces and expel all German officials, and would also occupy two-thirds of the Ruhr Valley, including Essen and Bochum. The order would affect directly German industrialists' interests, and would enable France to dispose of the coal and coke supplies to which she iB entitled under the treaty. BRITISH ARMY OF OCCUPATION. i STRENGTH AND COST. (ReoeiTed November 29th, 7.50 p.m.). LONDON, November 28. Replying to a question in the House oif Commons, tihe Hon. Walter Guinj men. Undersecretary ol State for War. said the strength of the British army of occupation in Germaoiy on November 11th was 652 offioers and 8138 men. The total, cost of the i army of occupation to July 31st waa ££4,658,000. THE FOREIGN EXCHANGES. SLUMP IN FRANC AND MAES. (Received November 29th, 8.15 p.m.) LONDON, November 28. The exchange rate on Paris is 65.35 francs to the £ sterling, due to heavy Belling by speculators owing to France's attitude on the reparations problem. The rate on Berlin, is 38,500 marks to the £• The rate on New York is 452J oenta to the £. There is considerable buying of sterling on both sides of the Atlantic. The improvement in the sterling exchange at this period of the year is causing some surprise, and is regarded as indicative that the United States is favourably impressed' by Britain's financial and economic position.