REMARKABLE PROPOSAL.

Hawera Star, Volume XLVI, 30 June 1927, Page 5

REMARKABLE PROPOSAL.

STATE FINANCING

GUAfI.ANTEES FROM STRONGER

NATIONS

UY CABLE-PRESS ASSOCIATION—COPYRIGHT LONDON, June 28. The diplomatic correspondent of the “Daily Telegraph” draws attention to a, remarkable unpublished report of the Financial Committee of the League of Nations on Franco-Finnish proposals for the establishment of a common scheme of financial assistance in support of any State which is the victim of aggression. The “daily Telegraph” expresses the opinion that it makes extraordinary reading from the standpoint of the British taxpayers, it is proposed that a guarantee convention be established, the trustees of which he authorised to raise loans in Paris on the guarantees by the various Powers. The committee suggests that the guarantee allocated to each signatory State be fixed on its basis of contribution to the League. Thus the British Empire, which contributes 258 units oi the League Budget, whereas France and Germany contribute only <9 units, would bear the major burden. If the guarantee were fixed at £50,000,000 the Empire would contribute £13,000,000 and France under £-1,000,000. Moreover, certain financially strong signatories would be asked also to give super-guarantees and undertake to facilitate the public issue of loans in thc-ir own country The ‘‘Daily Telegraph” says that it would be .sheer foliy to expect the British and Dominion Parliaments to pass such measures.