REPARATIONS.

Press, Volume LXV, Issue 19668, 11 July 1929, Page 9

REPARATIONS.

PRIORITY TO FRANCE AND ITALY. MR SNOWDEN'S REPORT. (BSITISfI OTtICIU. WH.iLESS.7 (Received July 10th, 5.5 p.m.) RUGBY, July 9. Replying to questions in the House of Commons to-day the Chancellor of the Exchequer, Mr Philip Snowden, said that the proposals for a final settlement of the Reparations question, which were recently submitted to the British and other Governments by the Committee of Experts, were being considered by the Government with a view to a conference with the other Powers concerned. The House would realise that this country was in no way committed to acceptance of the recommendations of the Committee. Questioned regarding the loss that would be entailed by Britain by reason of a departure from the Spa percentages, as recommended in the Young Report, Mr Snowden said that they amounted on an average to approximately £2.400,000 yearly. The capital value of this annual loss would depend on the interest tables selected, but applying the 5} per cent, table, which the Experts themselves had utilised for their calculations, it might be estimated at £37,500,000. The great bulk of the loss would, however, only begin to be incurred after 10 years. The Report recommended that the French Government should receive a preponderating share of the unconditional part of the German annuities, but that they should provide a guarantee fund amounting to £25,000,000. which would be flrawn upon to make good to other creditor Powers any loss arising out of postponement of the rest of the annuities. Provided that this guarantee fund was effectively put in force, the security of the British share, as compared with the French share, should not be appreciably impaired, so long as any postponement of German payments was limited to two years, as contemplated in the plan. But, of course, the guarantee fund afforded no security against the cessation, or longer postponement of the additional annuities to the extent that these were regarded as possibilities. It might be said that the effect of the Young Pian was to conceda priority to France and Italy. FRENCH DEBT TO BRITAIN. (Received July 10th, 5.5 p.m.) RUGBY, July 9. Replying to a question Mr Snowden said that from the outset of the negotiations for the funding of the French war debt the late Government had laid down as its fundamental principle that any payment France might make to the United States Government should be accompanied simultaneously, pari passu, by a proportionate payment to Great Britain, and a reminder that this principle still holds good was sent to the French Minister for Finance by Mr Winston Churchill last May.

DOMINION REPRESENTATION.

PARIS, July 9

The French Government is willing to acquiesce in the inclusion of Dominion delegates at the Reparations Conference, but feels that their inclusion would give Britain increased power at the conference, even though it were not held in London. —Australian Press Association.

ARMY OF OCCUPATION.

LONDON, July 9

Mr Tom Shaw told questioners in the House of Commons that British troops would not carry out manoeuvres in Germany in 1929. —Australian Press Association.