THE PROBLEM OF REPARATIONS.

Press, Volume LXV, Issue 19612, 7 May 1929, Page 11

THE PROBLEM OF REPARATIONS.

COMPROMISE MAY BE ACCEPTED. DR. SCHACHT AGREEABLE. DIFFICULT POSITION FOR FRANCE. (tjhitbd press association— by electric telegraph—copyright.) •(Received May 6th, 7.45 p.m.) LONDON, May 6. The terms proposed by Mr Owen D. Young, American chairman of the Committee of Experts, for a compromise on the Reparations problem, have not yet been published. It is understood that the compromise proposes that Germany should pay £lO3, 000,000 annually for 37 years which, with a further sum furnished by the new International Bank, would mean a total capitalised sum of £1,800,000,000, compared with the Allies' demand for £1,950,000,000.

The Paris correspondent of the "Financial Times" states that Mr Owen Young proposed that Germany shall pay 58 annuities, commencing with £85,000,000, and rising to a maximum of £122,500,000, but after the 3"th annuity there will be a big decrease for the next 21 years. The chief German delegate. Dr. Schacht, tentatively accepts Mr Young's suggestion, with certain economic conditions. . Paris newspapers are not enthusistic over Dr. Schacht's acceptance of Mr Owen Young's compromise, fearing it will place France in a difficult position, as she may be accused of spoiling the settlement. France hopes, however, that the United States will make corresponding financial sacrifices if the compromise is accepted. The "Morning Post" says: "For the first time, Germany offers a figure within the margin which the Allies can accept. The figure which is now in process of agreement will suffice to pay the Allied debts to the United States in 37 years, whereas Great Britain agreed to continue paying America for 58 years, but the discrepancy does not disturb British experts, as the profits of the proposed International Bank may be used for later payments. Moreover, as one delegation said: 'Who can say what will happen in the course of a generation?' The coming tussle over Reparations will now concern the diminution of payments for reconstruction in the devastated provinces in France and Belgium."—Australian Press Association, United Service.