REPARATIONS AGREEMENT

Greymouth Evening Star, 9 July 1932, Page 7

REPARATIONS AGREEMENT

PERSEVERANCE REWARDED FRANCO-GERMAN COMPROMISE [BY CABLE —PRESS ASSN.—COPYRIGHT.] LONDON, July 8. A Lausanen message states: The Germans have abandoned their political demands. This came at the end of a wearying day, when the negotiations were threatening a deadlock. But, disappointing as the Germans’ political hopes were, the “Daily Telegraph” understands that France, as a compensation, agreed to the reduction of the German payment to one hundred millions. This, it says, completely changed the outlook. The change came after much parleying and many journeyings from hotel to hotel. Sir J. Simon and Mr. Chamberlain took up the mediatory efforts between the French and the Germans, which Mr. MacDonald had carried out so tirelessly during the past few days. The last meeting ended at 3 o’clock on Friday morning. No o ( fficial announcement has yet been made.

WHAT GERMANY WILL PAY (Rec. July 9, 9 a.m.) LAUSANNE, July 8. An agreement was reached on practically all points, only minor details are outstanding. The German reconstruction payment is fixed at three thousand million niciTks * It is officially stated that an agreement is practically complete.

GRATIFICATION IN BRITAIN. THE FINAITdISCUSSION. [BRITISH OFFICIAL WIRELESS.] RUGBY, July .8. A settlement of j the -Reparations problem, the existence of which has been one of the chief disturbing factors in the political and economic recovery of Europe since the war, was reached at Lausanne to-day. News was received here with, intense satisfaction, particularly in view of the prominent part taken by the British Prime Minister in the prolonged negotiations of the past few days. ’ The heartening news was immediately communicated to the Commons by Mr Thomas, who interrupted the Irish debate, to make the announcement that had first been conveyed to the Government in a telephone message from the Prime Minister at Lausanne. Intense enthusiasm prevailed. Although the issue was in doubt until the end, a more favourable atmosphere was detected when the' chief French and German delegates met at Mr MacDonald’s hotel, this morning, to resume the negotiations which had continued far into the night. Chancellor Von Papjen was in communication with his Cabinet colleagues, at Berlin, while the conversations were in progress, during the forenoon, and thereafter rapid progress was made. Shortly after luncheon, M. Herriot was able to inform the waiting journalists that an agreement had been reached.

The terms of the final settlement are not yet officialy disclosed, but according to the Press reports, the agreement provides for . a definite moratorium for three years, and the suppression ,of all reparation payments by Germany. Their place will be taken by a final restoration payment by Germany when prosperity returns, of thre e thousand million marks, plus charges, to be guaranteed by 5 per cent, bonds, to be issued at 90. It is stated that the redemption period of the bonds and other incidental matters will be the subject of discussion this evening, when the plenary session of Reparations Conference will be held, and that at the final plenary session to-morrow signatures to the agreement will be affixed. ’

Mr Neville Chamberlain is leaving Lausanne to-night, and will arrive at London to-morrow a,fternoon. The Prime Minister is expected to reach London on Sunday afternoon. The “Daily ‘News-Mail” and “Chronicle” - laud the Lausanne Pact as a great achievement of great hope. The latter compliments M. Herriot and Captain Von Papen rising to the height of the occasion, as patriots and citizens of the world.

U.S.A. INTIMATION. (Received July 9, 10.30 a.m.) WASHINGTON, July 8. State Department officials were gratified that Lausanne had finally reached a definite cmopromise on the tangled reparations. It was said that the United States now stood ready to fulfil its promise that it would consider revision of the debt arrangements so soon as the European Powers reached an agreement about reparations. No formal arrangements have been made by the State Department for reception of proposals for debt revision, but the Department adheres to its plan that European nations must submit their proposals individually not as bloc.