CANNOT PAY A PENNY

Hawera Star, Volume XLIX, 8 January 1930, Page 5

CANNOT PAY A PENNY

AUSTRIA’S ANNOUNCEMENT REPARATIONS FOR WAP-

MANY COMPLEX PROBLEMS

(United Press Association—By Electrio Telegraph Copyright.)

THE HAGUE, Jan. 7. Apart from Autria’s dramatic pronouncement that it cannot, pay a penny of reparations the principal interest of the gathering at Th e Hague centred in the seeret meeting at the Binnennof between chief German delgatos and the principal creditors. No secretaries Or experts were present and no communique was issued, but it is understood there was a frank discus, sion of half a dozen of the remaining points in connection with German reparations. An important, question was hard cash as it concerns the date upon which transfers are made by Germany l„> the International Bank, as th e monthly payments average £8,500,000 each. The loss or gain of interest according to whether the payments are made on the first or thirty-first day of the month may amount to £4,000,000 to £5,000,000 annually. Until a compromise is reached the matter is certain to give rise to a most ingenuous controversy.

Other points remaining include the gold vnln 0 of Germany's currency and assurances regarding the security of certain 'German revenues now mortgaged for reparation purposes. The problems are so complex that. Herr Curtins has specially summoned Dr. Sehacht to The Hague. Th 0 most difficult question remaining, however, relates to the measure to b c taken in the event of Germany’s future default and th 0 precise powers of the International Bank.

The Germans want an assurance that the Young Plan implies the moral end of the regime of sanctions, and particularly military sanctions. While M. Briand and iM. Tardieu are privately convinced that sanctions are things of the past they are unwilling publicly to give any assurance -that might be construed as a renunciation of the Peace Treaty. Since the matter was raised by the French the German delegations .will have to find a formula. Conversations between M. Tardieu and ’Herr Curtins have been almost continuous, Herr Curtius insisting that international banker are strongly opposed to the idea of military sancrions, arguing that American bank firms which are undertaking to market German bonds in the United States in conjunction with the Allies’ banks of issue will not guarantee successful sale of bonds if a military controversy is raised. The general belief is that the Germans will not succeed in having the provisions of the Treaty of 4 r ersailles annulled, but may keep sanctions out of the protocol. Tt was reported during a lunch with Mr. Snowden that M. Tardieu suggested that in the event of Germany exer-) cising its rights under the Young Plan to suspend payment, all the machinery provided in the plan shall be put into operation. Tf in the end the arbitration committee decided against Germany the latter shall have the right to bring the matter to the World Court at The Hague. Only after the World Court had decided against Germany would the right imposed by the sanctions exist. The time occupied by this procedure is estimated at a year.