The Reparations Problem Completely Solved

Hawke's Bay Tribune, Volume XXII, Issue 175, 9 July 1932, Page 7

The Reparations Problem Completely Solved

Agreement at Lausanne

Great Work by British Premier

German Restoration Payment Fixed

Long Negotiations Successfully Concluded

[United Press Association—By Cable—Copyright.] (Received 9, 10.15 a.m.) Lausanne, July 8. Aggreement has been reached on practically all points; only minor details are outstanding. The German reconstruction payment is fixed at 3,000,000,000 marks. It is officially stated that an agreement is practically complete. ENTHUSIASM IN BRITAIN. (Received 9, 12.30 p.m.) Rugby, July 8. Settlement of 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. The news was received here with intense satisfaction, particularly in view of the prominent part taken by the British Prime Minister in the prolonged negotiatons of the past few days. The heartening news was immediately communicated to the House of Commons by the Rt. Hon. J. H. Thomas, who interrupted the Irish debate to make the announcement, which 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. Herr von Papen had been in communication with his Cabinet colleagues in 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 agreement had been reached. The terms of the final settlement are not yet officially disclosed, but according to press reports the agreement provides for a definite moratorium for three years and the suppression of all reparation payments by Germany, their place to be taken by a final restoration payment by Germany when prosperity returns of 3,000,000,000 marks plus charges, to be guaranteed by five per cent, bonds to be issued at £9O. It is stated that the redemption period of the bonds and other incidental matter will be the subject of discussion this evening, when the plenary session of the Reparations Conference will be held, and that at the final plenary session to-morrow the signatures to the agreement will be affixed. Mr. Neville Chamberlain is leaving Lausanne to-night and will arrive in London to-morrow afternoon. The Prime Minister is expected to reach London on Sunday afternoon. UNITED STATES GRATIFIED. (Received 9, 11.40 a.m.) Washington, July 8. JJ. x ailment officials were gratified that the Lausanne Conference had finally reached a definite compromise on the tangled question of reparations. It was said that the United States now stood ready to fulfil its promise that it would consider a revision of debt arrangements as soon as the European Powers reached an agreement on reparations. No formal arrangements have been made by the State Department for the reception of proposals for debt revision, but the Department adheres to its plan that European nations must submit their proposals individually and not as a bloc. WIDESPREAD SATISFACTION IN ITALY'. (Received 9,-12.20 p.m.) Rome, July 8. WiiL-.spread satisfaction is felt concerning . the Lausanne agreement, which is considered to be justification for Signor Mussolini’s ten years’ campaign for obliterating war’s tragic accountancy. WHAT GERMANY WILL PAY. ‘ (Received 9, 12.20 p.m.) Lausanne, July 8. Had Germany met the whole of the reparations bill formulated in 1921 she would have paid £12,500,000,000. The present final liquidation means that she will pay £2,845,000,000 according to German calculations, but the Reparations Commission says the actual amount will be £2,160,000,000. The discrepancy is due to the varying values placed on German payments in kind. GERMAN NATIONALISTS’ COMPLAINT. (Received 9, 12.20 p.m.) Berlin, July 8. Nationalists resent the abandonment of Germany’s demands for formal elimination of the war debt claims and implications concerning colonial misgovernment, and acknowledgment of her right to equality of armaments. A GREAT ACHIEVEMENT. (Received 9, 11.10 a.m.) London, July 8. The “Mail” and “Chronicle” laud Lausanne as a great achievement. The latter compliments M. Herriot and Hen von Papen as rising to the height of the occasion as patriots and citizens would.