HYTHE CONFERENCE

Dominion, Volume 14, Issue 180, 26 April 1921, Page 5

HYTHE CONFERENCE

FRENCH PROPOSALS DISCUSSED

TWO SCHEMES SUGGESTED

RECONSTRUCTION OFFER FROM GERMANY

By Telegraph—Press Association-Copyright London, April 24.

A communique from Hythe states :~ There was a long conference this afternoon, at which the French proposals were discussed. No decision was arrived at, because it was merely an informal discussion between the two Premiers, and no decision can be reached until there is a meeting with the rest of the Allies. The Supremo Council has been summoned to meet on Saturday next at Paris if the coal strike is ended, otherwise it will meet in London.

Two views were presented to the French Government last week. The first was the suggestion by M. Loyloux, French economic expert at the Brussels Conference, that there should be Allied control of German exports and coal, with the threat of military occupation if Germany obstructed. The second scheme was for a definite occupation of the Ruhr area. The fact that on Friday experts consulted Marshal Foch and the military leaders led to the opinion that the second plan had been adopted. Moderate feeling in England does not go all the way with M. Briandfs attitude that the time for talk is past. While making due allowance for Franco’s great suffering, there is a feeling that she is creating in Germany a hatred as great as that generated in France over the war of 1870. ' i

It is reported that Mr. Asquith, Lord Robert Cecil, and Mr. Barnes sent a memetrandum to Mr.' Lloyd George appealing to him not to lend assistance to further sanctions.

If France is fully determined' to occupy the Ruhr, Mr. Lloyd George may find himself in a diplomatic impasse. It is believed that he cherishes hopes of an acceptable eleventh-hour proposition from Germany. Certain circles view Germany’s, latest proposal in regal'd to the devastated areas as a process which will ultimately result in the expansion of German industrialism. Reconstruction by German workmen with German materials would enormously assist her unemployment problem without in any -way ameliorating similar conditions in France.

There is some confusion over Germany’s attitude respecting the Reichsbank gold. The report from Brussels that Germany had informed the Reparations Commission that the gold reserve would be transferred to Cologne in a few days was erroneous, through a wrong interpretation of a telephone message between the Retparations Commission in Paris and tho Foreign Office in Brussels. Tho fact is that Germany rejected the demand on the ground that the gold was private money. ' She points out that under tho Versailles Treaty she is prohibited from exporting gold before May 1. She is now willing to prolong the Treaty prohibition until October. —Aus.-N.Z. Cable Assn. PREMIERS’ DIPLOMATIC CONTEST FRANCE’S DETERMINATION TO OCCUPY RUHR. London, April 24. Tho conversation at Hythe was purely a diplomatic content between the two Premiers, the military and economic experts of both countries being left at home. The main question at issue is whether Britain will give active or moral support to France’s determination to occupy the Ruhr area. Britain is faced with tho problem whether she will lose more in trade than she will ever receive in inebmnities. As one publicist puts it, in cases of international default it is one thing to seize goods and quite another 'thing to transmute them into cash. Other quarters view the seizure of tjie-Ruhr with apprehension, as inflicting further injury on the British coal industry, with increased disorganisation of exchange.— Aus.-N.Z. Cable Assn. BRITISH SYMPATHY WITH FRANCE’S PROPOSALS GERMANY’S LAST NOTE QUITE INADEQUATE. London, April 24. It was semi-officially announced, after Mr. Lloyd George had received news-

paper men at Hythe, that Britain greatly sympathises with the French propoeals, and will support the occupation of tho Ruhr unless Germany fulfils her Treaty obligations. Germany’s last Note is quite inadequate. It makes no definite proposals for the payment of the balance of the reparations, stall less the 600 millions due on May 1. Germany’s' proposal to supply materials and labour for the restoration of the devastated areas will be welcomed, but France has been applying to Germany for six monJlhs for materials, without result.— Aus.-N.Z. Cable Assn. GERMANY’S APPEAL TO AMERICA DRAMATIC ’SURPRISE! IN BERLIN. Berlin, April 22. The announcement of Germany’s appeal to America caused the most dramatic public surprise since the military collapse. Tho Wair Cabinet acted without consulting the party leaders. Herr Bernsdorff, the ex-Ambaseador to Washington, regards the proposal as tho only practical solution, as without America reparation in the form of cash is impossible.

The Democrats and the Centre Party express modified approval, but the Conservative newspapers hotly condemn the surrender to America, and regard it as an act of desperation.

Party leaders strongly criticise the Cabinet and demand the summoning of Parliament forthwith for a special dis-cussion.—Aus.-N.Z. Cable Assn.

GERMAN CABINET UNABLE TO AGREE. , Paris, April; 24. The German Cabinet rose this morning after a long sitting. It was unable to agree as to the nature of the pro positions to ho eent to President Harding. The Cabinet will reassemble on Monday.—Aus.-N.Z. Cable Assn.

NEW PROPOSALS SENT TO PRESIDENT HARDING. (Rec. April 25, 11.5 p.m.) Berlin, April 24.

The Government has sent new proposals to President Harding for transmission to the Allies. They include the payment of a larger sum by means of an international loan, as well as labour and materials for rebuilding the devastated areas, and the taking over of the Allies’ indebtedness to America. —Aus.-N.Z. Cable Assn. AMERICA WILL SIT WITH ALLIES IF ANOTHER CONFERENCE WITH GERMANY IS HELD. (Roc. April 25, 11.50 p.m.) New York, April 25. "The Times” Washington correspondent says: "It is understood that if the Allies regard Germany’s reparation proposals as a proper basis for discussion, the next slop will be a. conference of the Allies and Gornwiny, at which the United States will hare a representative, but not as umpire or mediator. The tinted States will sit with the Allies.” —Aus.N.Z. Gabi® Ason,