ANNOUNCEMENT IN COMMONS.

Hawera & Normanby Star, Volume XLI, Issue XLI, 9 March 1921, Page 5

ANNOUNCEMENT IN COMMONS.

THE INDEMNITY. how it was tcTbe collected. *'. ' . LONDON, Mar. 7. Mr .Lloyd <3eorge,. in a statement in ! the House of Commons to-nighs, * announced that the German proposals had l>een refused. He laid the conference felt no proposals were made which! would justify postponing the puttingl Into operation of the sanctions agreed upon. The German nation did not in the least realise that the Allies were determined to enforce the Treaty. Proposals would foe submitted'to the House of Commons; enabling the1 Allies ■ to compel every purchaser of German 'goods in Allied countries to pay a proportion of the purchase money into the Exchequer. Referring to the sanction which enabled the Allies to compel purchasers of German goods to hand over a portion of the money to the Exchequer, he said, in answer' to a question: '.'We shall certainly pass the proposals on to the Dominions, ibut they must ■ legislate themselves, for . they are just as interested in the indemnity as we .are, and they will prob- . ably find this the best way of collecting it. That is all we can do; we cannot pledge the Dominions." (He explained that the- proposal .would operate thus. The Government proposed to deduct whatever percentage was necessary in order to lovy the pro- .; portion of annuities which would appertain to'our country. Fifty per cent, would cover the amount this year. A man who buys £1000 worth of German goods would pay £500 into the British Exchequer and jSecure a receipt. Then .he would send the German seller a bill of exchange for the balance^ to which he would pi.n ihe Treasury receipt. The German seller would then go to his: Government'and say: "I1 want you to cash this receipt." The seller cashes it into currency, which was quite useful to him, ibut no good to us, so we get paid in our currency and Germans in theirs, and 'both are/satisfied. {Laughter). ; > Replying to.;an interjection asking what would happen if goods were exported ex neutrals, Mr Lloyd "George said they would not allow such fraudulent transaction^. What settles the! transaction is the origin of the goods; tjjere was no difficulty in, following that. N Mr Arthur Henderson asked for an early opportunity for a full debate, to -which Mr (Lloyd George assented.