THE BRITISH NOTE

Evening Star, Issue 18334, 23 July 1923, Page 9

THE BRITISH NOTE

WORK COMPLETED.

TERMS NOT AVAILABLE.

. Press Association—By Telegraph—Copyright.

LONDON, July 20.

Cabinet, after a .protracted meeting, finally approved the draft Note for submission to the Allies. The _ greatest secrecy is maintained regarding its terms, lint it is understood that while the British attitude is being'maintained, every effort is made to reconcile the French viewpoint with that of the British. It is expected that the Note will he handed to the respective Ambassadors to-morrow. The ‘ Daily Telegraph’s ’ diplomatic correspondent'' says that the draft reply assents in principle to the German request for the assessment of their capacity for payment by an impartial body of experts, but carefully omits to specify the composition of that body. It also suggests that the three types of guarantees offered in the German Memorandum will be considered without prejudicing the question of their completeness or sufficiency. The reply is not unfavorable to the German request for a conference with the Allies. It contains no direct condemnation of passive resistance, but expresses regret at the calamities created by the Ruhr situation. The reply is much shorter than the Memorandum to the Allies.

The * Daily Express ’ understands that the covering letter expresses the conviction that it is desirable to appoint an international Commission to investigate Germany’s capacity to pay _ reparations, and indicates that Britain is not in a position to ask the German Government to abandon passive resistance in the Ruhr because the British Government believes that the French occupation is contrary to the terms of the Treaty of Versailles. The letter adds: “If Franco is willing lo refer the question of the legality of Ihe occupation to The Hague Tribunal and to abide by its decision, the British Government would press Germany to abandon her passive resistance immediately, ans also to abide by The Hague findings.”—A. and N.Z. Cable.

GERMANY MUST PAY.

LONDON, July 22.

Sir W. Joynson-Hicks, speaking at the Crystal Palace, described the British reply to Germany as an anxiously-pre-pared document. It was a melancholy thought that nearly four years after the war Europe should still be in a condition of smouldering war. “Wo are determined to make Germany pay,” he said, “ but wo could not help realising that until some stability 'is established in Europe the trade of the world can never be satisfactory.”—A. and N.Z. Cable.

OFFICIALS DECLINE TO SPEAK,

LONDON, Jnly 22,

The British Note has been received at the Quai D’Orsay, M. Poincare, in receiving journalists, refused to comment, saying 4 “If France discloses_ its contents England will break the negotiations. Likewise, if Britain discloses them, France will break negotiations.” The newspaper ‘ La Liberte ’ says: “ It would appear that the chief purpose of the British Government is to secure M. Poincare’s adherence by concessions on matters of detail.”

1 Le Temps ’ says; “ The proposed committee of experts to estimate Germany’s capacity to pay is contrary to the Versailles Treaty, bnt foreshadows an eventual compromise on the lines that the Separations Committee always has the right to consult specialists of any country upon any request by Germany regarding means of payment.” The Paris correspondent of the ‘ Sunday Times ’ says: “ What pleases Franco isthe fact that the British Note is couched is such terras as allow for important modifications, leaving the door open for further exchanges between the two Governments.”—A. and N.Z. Cable. BRUSSELS, July 21.

The British Note has arrived. Official circles maintain silence, but, favorable impressions continue.—A. and N.Z. Cable. WASHINGTON, July 21. The State Department announces the receipt of the British Note regarding I!uhr renarations. Comment is declined. —A. and N.Z. Cable. LUDENDORFF CALLS TOR REVENGE. BERLIN, July 21. German gymnasts assembled in Munich were greeted by Marshal Von Ludoudorff with a wild speech inciting them to war. “Germany demands from its youth,” he said, “ burning love of their own country in a war of revenge against the enemy. Gymnastics Is only a means to an end—- * to strengthen yonr fists and your spirits. It is the spirit whioh raises the fist and enables it to fall upon the head of the Fatherland’s enemies.”—A. and N.Z. Cable. THE WORTHLESS MARK. LONDON, July 20. The exchange rats at Berlin touched 2.000.C00 marks to the pound and dosed at 1.750,000. The record slump of the mark is apparently caused by banking troubles in Berlin. The Reichsbank has protested against the large business in marks done by foreign banks, and threatens retaliatory measures unless this is checked.—A. and N.Z, Cable. FOOD RIOTS.

BRESLAU, July 21.

Six persons were killed, seventeen wounded, and 100 arrests made during food riots, when sixty shops were pillaged by strikers, who were augry at the rising prices, and attacked the shops when their wives reported that food was still dearer. —A. and N.Z. Cable.

GERMANY’S LAST PROPOSALS,

The German proposals contained in a Note to the Allies at the beginning of May offered a total of £1.500.000,000 to be raised by the issue of three international loans in instalment; of £L000,000.000 up to July 1, 1927; £250,000.000 up to July 1. 1929; and £250,000.000 up to July 1, 1931. Germany also undertook to make the payments in kind in accordance with earlier agreements.

Tho German offer was separately and peremptorily refused bv Franco and Belgium. On May 13 the British Government sent a Note to Germany stating that tho sum offered by Germany was altogether unacceptable, being far bo-low the moderate amount (£2.500.000,COO) proposed by Britain last January. Britain was per.pnau'i"! that Germany, in her own interests, would see the advantage of “displaying a greater readiness to grapple with the realities of the case,’’ and‘expand her proposals into a feasible basis for discussion.

At the beginning of last month Germany sent fresh proposals to London, Paris, Brussels, and Rome. Tho Note stated that the total payment given in previous Notes (£1,500,000,000) was arrived at after an exhaustive examination of the country’s capacity to pay, which had precluded the naming of a higher sum. The German Government is willing to refer the question of the total amount of reparation to an international commission of experts, and to place all materia] statistics and documents at its disposal. The German Government pledges itself further to accept the tribunal’s decision. Since international loans are not a feasible proposition, Germany proposes yearly payments raised from her own resources. The guarantees include State and private guarantees, tho former including the income from the Customs taxes on tobacco, sugar, and alcohol, which bring in £20,000,000, and the revenue of the State railways producing another £25,000,000. Among the