PARIS DEADLOCK

Hawke's Bay Tribune, Volume XIII, Issue 19, 5 January 1923, Page 5

PARIS DEADLOCK

Italians as Conciliators

ANGLO-FRENCH FRIENDSHIP

UNABATED.

THE FUTURE INDEFINITE.

lß.v Cable.—Press Association.— Copyright.]

(Received 5, 11.15 a.m.) Paris, Jan. 4

The Italian delegation assumed the role of conciliators and drafted a plan endeavouring to combine important points of the French and British schemes. When the conference resumed Signor Torreta submitted a compronjjse. It is believed the French are unlikely to accept it. Diplomatic circles opine that Britain will withdraw from the Reparations Commission if a. rupture of the Entente results from the conference.

A special courier left Paris by aeroplane at 2 o’clock, bearing an important dispatch from Mr. Bonar Law to the Cabinet. After the conference terminated and it was announced that the British and French viewpoints were irreconcilable, Mr. Bonar Law. on leaving the room, declared that Britain’s friendship for the French people was unabated. M. Poincare reciprocated this sentiment A member of the British delegation expresses the opinion that if Franco decides to take isolated action Britain is bound to make a formal protest, at the same time making it clear that she will not participate in any Reparations France may secure by her action. The feeling in British circles is that the conference will break up to-night. M. Poincare requested the Ambassador in Washington to inform Mr. Hughes thjit “the German proposal for non-aggression against France was clearly undertaken with a view to securing; evacuation of the Rhineland before fulfilling' the Treaty of Versailles. Her present proposal of nonaggression against France, Italy and Britain would leave her free to attack Poland, Czecho-Slovakia, and even Denmark, to regain lost territories, and we should be forbidden to come to theiit aid J’

When the conference reopened an official French note was issued declaring that under the contract signed at Calais on June 2. 1916, France received from Britain credits to the extent of £150,000,000 as security, for which France sent fifty millions’ worth of gold to London on the understanding that the gold would be returned to France in three years after the conclusion of the war upon French repaypayments. England, in 1917, and again in 1919, sought release from her oblingation to return the gold, but France refused, consequently England is still under an obligation to return the gold. —(A. and N.Z.)