THE INDEMNITY.

Lyttelton Times, Volume CXVIII, Issue 18411, 18 May 1920, Page 5

THE INDEMNITY.

GERMANY’S DEMANDS. By Telegraph—Press Association— Copyright. Australian and N.Z. Cable Association. PARIS, May 16. It is stated that the German delegates to the Spa Conference will claim Upper Silesia for Germany, regardless; of tho result of the plebiscite; restoration of a portion of the German commercial fleet; restoration of her colonies ; reduction of the. cost of the armies of occupation; supplies and raw material from the Allies, with a view to reconstructing industry; permission to establish an army of 200,000 men; and permission to immediately join the League of Nations. Tbe delegates also aim at the longest possible postponement of the first payment of the indemnity. They will probably give an undertaking that Germany will restore the houses in tne devastated regions of France, using German money and labour. BERLIN, May 16. Financial circles describe as fantastically exorbitant the £5,000,000,000 to £10,000,000,000 mentioned .by Paris newspapers as the indemnity France will demandTHE SPA CONFERENCE. Imperial News Service. LONDON, May 15. Mr Lloyd George and M. Millerand to-day agreed to the postponement of tho Spa Conference till after the German general elections- The date June 21 was provisionally suggested. It was agreed that the Versailles Treaty should bo maintained in its Fill force, particularly in regard to the disarmament clauses whose enforcement should not be postponed until after the Spa meeting. In other words, the question of disarmament will not be discussed at Spa. As regards reparations, M. Millerand provisionally assented to the fixing of a. definite sum, subject to certain conditions, 0110 of which is that France shall receive payment on account from Germany. The financial experts will be consulted later.

ANGLO-FRENCH AGREEMENT. Australian and N.2. Cable Association. LONDON, May 16. Semi-official disclosures from Hythe stato that Mr Lloyd George demurred to M. Millerand’s claim that payment for the .reparation of France’s devastated areas should receive priority out of the instalments of Germany’s indemnity. A mutually satisfactory compromise was arranged, whereby France’s repayment of British _ loans shall extend over the same period as Germany’s payment of reparations. The previous arrangement stands whereby Belgium gets the first £100,000,000 of Germany’s indemnity, Franco taking 55 per cent of the subsequent payments, Britain 25 per cent, and the other Allies 20 per cent.

Imperial Nows Service. (Received May 17. 7.20 p.m.) LONDON, May 16. The Hythe Conference has concluded. The official statement says that the French and British Governments recognise on one hand that it is iji the general interest that reparation for losses and damage due to the war should be secured a 3 soon ns possible. With this object it is necessary that the resources of Germany should be put in a position to regain financial autonomy by the speedy fulfilment of her obligations. The Governments, therefore, express the opinion that in order to solve the economic difficulties gravely weighing upon the world «nd definitely mark the beginning of an era of pca.ee, it is important to reach a settlement which will reach the whole body of international liabilities left as a legacy of ilia war, and which at the same time r ill ensure parallel liquidation of the inter-Allicd war debt and the reparation of the debts of the Central Empires. Accordingly, experts will be charged :

Firstly, to prepare immediately for examination for their two Governments proposals fixing the minimum total for tho German debt which will he capable of acceptation by the Allies, and at the same time compatible with Germany’s capacity to pay. Secondly, to determine the method of payment and capitalisation of Germany’s debt which will be best calculated to assure realisation of the general views expressed aboveThirdly, to establish conditions for division between the Allies for payment by Germany in accordance with agreements which certain Allies already have reached, and which remain to be definitely settled in the case of other Allies.