THE REPARATION PROBLEM.

Press, Volume LIX, Issue 17756, 7 May 1923, Page 9

THE REPARATION PROBLEM.

FRANCO-BELGIAN REPLY TO GERMANY.

CONDITIONS OF NEGOTIATIONS

(BT CABLE—PRESS ASSOCIATION —COPYRIGHT.) (AUSTBALIAX AND S.Z. CABLE ASSOCIATION.) PARIS, May 4. The "Petit Parisien" says the reply of the French and Belgian Governments to the German Note will make it quite clear that they are. prepared to listen to Germany, provided that she accepts four points:— (1) No conversations unless passive restance in tho llhineland and Ruhr * ceases. (2) The evacuation of the Ruhr in proportion to the payments made. (3) Germany must submit to the 1921 conditions, fixing her obligations at £6,600,000,000. (4) Germany must offer practical guarantees for security, instead of more or less precarious engagements.

(Received May 6th, 11,6 p.m.)

LONDON, May 5

The Belgian Cabinet adopted wholly tho text of the French reply to the German note. The text of identically worded replies to be sent separately by l'ranco and lieigium was remitted to-day to the Allied and American Embassies in Paris.

Under Articles 231., 232 and 233 of the JUeaty of Versailles the iiepaiawun Uummissiou on -May 6th, -1-921, notmed that the obligation of Germany lor reparations Jia.u been hxed at f32,00V/,OOU' J OuO gold marks (£0,0C0,000,000), less the amount already paid, sums uuc to Germany in respect of fetalis property in ceded territory, and certain other sums which migut be credited to Germany. For the payment of this amount there were to be issued A bonds of 12,000,000,000 gold marks, B bonds of 36,000,000,000 gold marks, and 0 bonds of 82,000,000,000 gold marks, ail deliverable by -November Ist, 11)21,' and provisions were made for interest payments until final redemption, a iO,tX»U,OOU,OdO gold marks fixed annuity and a variable annuity equal to k 2{j per cent, of the value of German exports. Various, modiiications in these provisions have been made from time to time to accommodate Germany in her difficulty in meeting the payments. Outside of France and Belgium it has generally been accepted that the total of 0,(J00,'o00,000 would have to be scaled down very considerably. Last December, 'Mr G. ii. Hughes, United States Secretary of State, in a speech suggest, ed that America would be willing to be represented on an International Commission of experts to study the reparation question in all its bearings, and ascertain what Germany was actually capable of paying. At the Paris Conference in January Mr Bonar Law put forward the British plan for a four years' moratorium for Germany, and the fixing of the repariati«n sum at £2,500,000,000, payable in annual instalments spread over a long period by means of German Treasury bills. Conditionally on the acceptance of this scheme by France, Belgium, and Italy, Britain was prepared to forego her share of reparation. This scheme was summarily rejected by M. Poincare. The German Note proposed a total sum of £1,500,000,000, a four years' moratorium, and other conditions.

IGNORING BRITAIN.

A SURPRISING ATTITUDE. (Received May 6th, 5.5 p.m.) LONHJiV, May 5. The "Daily TelegrapE's" diplomatic correspondent points out that France, with Belgium, proposes to answer the German Note independently of Britain and without consulting the British Government regarding its views In these circumstances one is tempted to wonder what becomes of the Treaty of Versailles' and the principles of collective action and inter-Allied solidarity. Had France and Belgium reserved to themselves the exclusive right to reply to that portion 'of the Note relating to the occupation of the Ruhr, such an attitude might he .understood, but the proposed French extension of separate independent action to the common domain of the reparation problem is another matter which is bound to occasion some surprise and some feeling here. Lord Curzon's reference to the need of concerted action must have been deliberate.

A REMINDER TO FRANCE.

BRITISH GOVERNMENT'S VIEWS

STATED. (Received May 6th, 11.5 p.m.) LONDON, May 5. The "Sunday Express" understands that conversations are taking place between London, Paris, Brussels, and Rome, the British Government being desirous of ascertaining the Allies' views before drafting its reply to Germany.

The "Observer's" diplomatic correspondent says the present opportunity of ending the Ruhr deadlock is one which the British Government is anxious not to lose.

Tho "Observer" sajs it is being pointed out in the friendliest way to the French Government that the general problem of reparation and intorAllied debts, is one which does not concern France alone, and one which, in any case, cannot be settled by French action in tho Ruhr. Both the British and the American Governments hare so far refrained from broaching the subject of French debts to themselves out of friendship to France. It is all the more important, therefore, that Franco should not now miss the opportunity of consulting her Allies in a matter that concerns them equally with herself.

SHOOTINGS AT KRUPP'S

COURT-MARTIAL OF DIRECTORS.

LONDON, May 4,

Messages from Berlin state that the court-martial of the Krupp directors has opened. When the accused entered, the spectators rose .and Baluted them.

Hcrr Krupp was charged with, inciting his workers to riot on March 31st, •when a French detachment, becoming

surrounded, fired on the crowd. There were also other charges against the accused of resisting French military orders.

Counsel for the prosecution was frequently interrupted by the German counsel, who objected to the prosecutor making a political speech. The prosecutor said the crime they were called upon to investigate was in many respects political. The president ordered the German counsel to respect the Court by remaining silent until his time came to speak. The questions put by the president of the Court were mainly regarding the responsibility for tho sounding of the siren, which called out 50,000 workers. Herr Krupp said the sounding of the siren, should any occupation by foreign troops occur, was insisted on by the whole of the workers some considerable time before the tragedy. No new facts came to light, in spite of the long questioning, Herr Krupp resisting all efforts to pin him down to a statement of individual responsibility for what happened. After three other directors, Herren Bruhn, Hartwig, and Osterley, had denied responsibility for sounding tho siren, Mueller, a foreman, took the responsibility upon himself. Mueller said ho risked his own life to protect the French soldiers, and that hi attempting to bring about the withdrawal of the French soldiers he was misunderstood by the French oflicer, who thought he was inciting an attack upon them. He claimed he did all he could to calm the crowd.

(Received May 6th. 11.5 p.m.) PARIS, May 5.

A military interpreter named Jaeger said he heard Mueller tell the workmen to surround the French soldiers so that none should escape. A French soldier. Chabrous, declared that he was obliged to use his revolver and fired five shots. The hearing; was adjourned. On March 31st the French authorities sent a handful of soldiers with a machine-gun to requisition a motorcar at the Krupp works. As they entered the sirens sounded, and 50,000 workers began to pour out of tho works. One workman seeing tho danger stood out conspicuously and begged his fellows to keep quiet. The French soldiers, boiiig ignorant of the German language, mistook the workman's intention, and fired the machine-gun, using a whole bolt of ammunition, into the crowd a few yards distant. . Tho spokesman fell shot in the head, and tho bullets mado a lane of dead and wounded in the crowd. "What might have been a vastly worse catastrophe was just avoided. Two French engineers, who met a. maddened crowd, were in danger of being lynched, but were rescued by Krupp T a firo brigade. Eleven workmen wero killed, and a number seriously wounded. The German Government, in a protest, accused the French soldiers of firing without being attacked or menaced. The Note protested against this "frivolous massacre" and demanded full satisfaction for the victims and their dependants. Tho French reply said the small band of French soldiers were goaded into firing in self-protection, and maintained that Krupps were largely responsible for the sirens being sounded two hours after the troops had arrived at the works. Herr Krupp and four directors were arrested and charged with sounding the factory sirens with the express intention of provoking a conflict between workers and soldiers.

THE CUSTOMS BARRIER.

FRENCH SOLDIERS IN TROUBLE. BERLIN, May 4. The Berlin correspondent of the "Daily Telegraph'' reports that a remarkable smuggling scandal has .been discovered at Hennef, an important frontier control post. One hundred trains carrying thousands of tons of merchandise have been smuggled into unoccupied Germany and forty French soldiers have been bribed to such an extent that they are now multi-millionaires in marks. The trains consisted for the most part of fifty to sixty trucks laden to their full capacity. They were sent through at night when one of the forty thieves was on duty to collect the so-called export dues. It is believed that the thieves earned. 100,000 marks a train, and over 100 trains passed through the gap with 40,000 tons of manufactured goods. A German betrayed the scheme and a French surprise party came to Hennef on Wednesday night and surrounded the control post. TTie thieves happened to be negotiating for tile pasSage of a train of sixty-four trucks. The men in charge of the train were arrested, the train seized, and the forty thieves disarmed, their illgotten wealth being confiscated. They were then taken to prison at Bonn, where they will be court-martialled. No doubt similar smuggling has been going on at other centres along the Customs' frontier.

QUESTION OF CONCERTED ACTION. ATTITUDE OF M. POINCARE. (Received May 6th, 11.0 p.m.) LONDON, May 5.

The Paris "Temps" commenting on Lord Cirrzon's suggestions that the Ruhr problem should be solved by concerted action on the part of the Allies, says concerted action should imply nothing less than active support of France. It was the original intention that the French reply should be handed to the Germans at tho same time as to the Allies, but Lord Curzon'a emphasis on concerted action is believed to be responsible for a change of procedure, the Allies receiving the Note first. It is said this will give time for British com-, raent before the reply is delivered to the Germans.

On the other hand Lord Curzon received the French Ambassador to-day, and the latter, it is said, explained that M. Poincare would have preferred to send a collective reply, but that was impossible owing to tne_elamant demand of the French public and of Parliamentary opinion for immediate rejection of the Gcrmr.n Note.

Lord Curzon is stated to have been assured by the French Ambassador that if Germany at any time makes an offer which can possibly be regarded as a basis of discussion. M. Poincare will be prepared to consider it jointly with all the Allies.