DECIDED ADVANCE

Evening Post, Volume CV, Issue 142, 16 June 1923, Page 7

DECIDED ADVANCE

GERMANY'S SECOND NOTE

CONFERENCE ONLY WAY OUT

MB. LLOYD GEORGE IS EMPHATIC.

[The Mowing and all IJpyd George articles copyright by United Press of America in all countries, copyright in Australasia by Australian Press, copyright in Britain by "Daily Chronicle." Reproduction in full or in part prohibited.]

(UNITED M2S3 ASSOCIATION.—COPTRIGBI.)

(AUSTRALIAN - NSW ZEALAND CABLE ASSOCIATION.)

(Received 16th June, 8 a.m.)

LONDON, 15th June 1:

Mr. Lloyd George's latest article deals with reparations and discusses in particular the second Note sent to the Allies by Germany.

" The Germans have tried another Note," writes the ex-Prime Minister. " Psychologically it is a decided advance on the first Note. It is crisp and condensed, and docs not indulge in irritating processes of an argument. You should never attempt to argue with an angry man who is brandishing a bludg-

eon. The second Note avoids this provocation. It also suggests a number of substantial guarantees for the payment of interest on loans to be raised for reparation purposes. But this array of securities, standing alone, will not entice the investor to risk' his money in a German reparation loan. He will look at Germany as a whole, not in parts. The investor will want to know what is likely to happen to the country during the coming years—to its industry, fianance, politics, and people. A railway which collects its rates and fares in corrupt currency is no use as a security for any loan. Customs revenue collected in fugitive coin is equally worthless. The only reliable basis for a loan is a stable Germany, and you cannot have a stable Germany until you settle the reparations ; hence the propositions that really matter in the German Note are those which bear on the fixation of the amount Germany shall pay. ESSENTIALLY REASONABLE. "The Note suggests that further discussions should be by conference rather than by an interchange of Notes. How can any unprejudiced person refuse to recognise the essential reasonableness of thief It is common ground that the annuities imposed on Germany in May, 1921, demand modification. Even M. Poincare proceeds on that assumption, There is, therefore, a most important and highly difficult figure to be ascertained as to what annuity Germany can pay. Is it unreasonable that this question should be referred to a tribunal that will give it a calm and judicial consideration? If this were a business or trade dispute, the proposal would be regarded as eminently sensible and fair, and the party rejecting it would be condemned by public opinion.

■" At the date of writing this article the French Government has not officially expressed its views on the German Note, but one may safely assume from past experience that the Parisian journalists consulted the Quai d'Orsay before writing their critical articles. They declare that France will not discuss the German proposals until the latter withdraws her passive resistance in the Ruhr. If this imports acquiescence by Germany in the occupation and exploitation of the Ruhr until the reparations are fully paid, the position is hopeless. I hardly believe the French Government means to insist upon this, in spite of "Le Temps's " article bearing that interpretation. The French Government may only ask that while the terms are being discussed an armistice be concluded, the first condition of which shall be that all obstacles in the way of supplying France, Belgium, and Italy with reparation coal and coke shall be withdrawn. ARMISTICE FOR DISCUSSION. "An armistice on such terms ought not to be difficult to arrange, especially ii the Franco-Belgian authorities withdraw the tan on the export of Ruhr products to unoccupied Germany. Unless the terms be mutually accommodating, I surmise the German Government will have insurmountable difficulty in persuading the stubborn miners and railway men to assist in furnishing the products denied to their own countrymen. It is too readily taken for granted that the Ruhr workmen will obey the Berlin decrees. The Wilhelmstrasse no longer commands the respect of pre-war days. Still, a conference should experience no difficulty in fixing stipulations that would make it possible for France to enter a discussion on reparations without the suspicion attached to Ministers who lowered jthe national flag."