SPEECH BY LLOYD GEORGE.

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

SPEECH BY LLOYD GEORGE.

DENSITY. OF GERMANS. DO NOT REALISE POSITION. KG PROPOSALS BEFORE ALLIES. LONDON, Mar. 7. Speaking at the Allies' Conference, Mr Lloyd George said) the German offer contained no certainty of payment. There was nothing definite and nothing adequate afbout it; it did not offer a settlement for five weeks, let alone for five yearSj. It was not one on which, in' the markets of the world, a single paper franc could te raised. There were certain significant sentences used by Berr yon Simons which, showed clearly that Germany had! not faced her problem. He talked of the enormous sacrifices Germany would have to make in order to pay the annuit'es in five years. Germany did not quite realise the essential facts, and that impressed him morp and more each time he attended the conference. .Tt "was on account of the lack of effort that he had to announce, on (behalf of the Allies, their failure to come to anything like an approximate understanding with Germany. It was common ground to all parties thai' it was essential for the world's peace that there should toe a definite settlement between r>s and each of us. "We wanted >to know exactly where wt stood, so as not to (build on a rocking foundation, but on something which however low. was firm and touched bottom. He would examine Herr vot Simons' proposals in the light of whai >he considered to ibe of paramount, in .tprest to Germany, the Allies and nen irals, and it was in the light of sue!

. an examination innb he thought they had completely failed. Mr .Lloyd George added: I "Until we gei proposals from Gerj many which, mean a definite, unchal- >. I lengeable settlement there can be no peace between us." The Premier said) Herr yon Simons' latest .proposals were subject to conditions, one of which was to take a plebiscite in Silesia. If the Allies ac--1 cepted his proposal he would ibe perfectly justified in coming here and saying Germany has (been, deprived of territory on which she depended to pay < the annuities., therefore the London ar--5 rangement was at an end. "If Silesia remained German and' all -went well with' the annuities, what happens afterwards?" asked the Premier. "We have no proposal— not a figure, or a precise method of arriving at a figure. There was no minimum. Even while Germany was not anticipating that she would! (be able to pay annuities out'of current revenue for the first five years, will she mortgage her revenue for years following? Even if Germany pays the first year's annuity she will have to nnd t £120,000,000 for all the , Allies, one-fourth of what Britain has ' to find), with a million unemployed, for her war debt charges and, pensions, and one-ninth of what France'has to find. Yet, comparing Germany's population with. that, of Britain and .France, we ( are told Germany is- making a colossal sacrifice." I . Another significant part of Herr yon Simons' was his refusal to accept Germany's responsibility for the J war. " When he saw the proposal limiti ed to five years it left an uneasy feeling in his mind that there was an inclination by Germany to consider the possibility of history (beginning five, years hence, and) an appeal for a. revision of the sentence. The Allies could not enter upon a discussion" on . that basis. Germany's responsibility for the war was fundamental. Unless .Germany, whatever she thought of the Verdict, was prepared to act upon it, no arrangement made could) give conj £dence and restore that neighbourly goodwill essential to Europe's peace. iA/ second point upon which a settlement must ibe insisted on was the method of payment/ A mere paper agreement promising payment was un- ' satisfactory and insufhcient. Herr yon \ Simons'1 proposal did hot carry out any J of these objects. He was afraid Herr ( yon Simons was really not in a position to negotiate. He represents, and ' was returning to, a public opinion ■ which was not ready to pay this debt. ! Such proposals were not a settlement, but merely evasion. ' The. Alliest regret- ' fully decided that the sanctions, must s oxierate immediate)^. Herr yon Simons/, replying, said he \ had taken refuge in a provisional set- ] tlement under pressure of the Allies' 1 ultimatum. He regretted he had not a 1 second proposal in his pocket, and that | was the reason why he had to try to J find a new way. He regretted he was de.nied a brief delay to consult his Cabinet. . J He repudiated the suggestion that l Germany was not ready to fulfil her ob- ( ligations to the limits of her capacity. The fear that Germany would make use of a provisional settlement in order to secure later a revision of the Treaty * was unfounded. Germany was pre- l pared to fulfil her obligations to the I (limits. There was a possibility that ( they would be ready to furnish the y Allies with part of. the reparations by paying a portion of the purchasing * prices of German goods delivered into 1 iAllied countries to ,the Reparations Commission, and he had submitted and recommended this proposal to his" Government. He only regretted1 that the . proposal should! have been discredited in Germany by the Allies having placed it amongst the sanctions. . He agreed with the1 Allies' intention to institute an examination into the method of fixed and varied payments ( to different ' countries. He thought ■■ these pomts sould be dealt with by a ■joint committee of expert's, but the ex- / iperts were eo\np. to meet in an atmo- ■ sphere embittered1 by the sanctions. He felt Ttbliped to enter with nil stress a protest against suehr a procedure.