GERMAN PAYMENTS

Manawatu Standard, Volume XLIX, Issue 163, 11 June 1929, Page 2

GERMAN PAYMENTS

REPORT OF COMMITTEE. FULL TEXT AVAILABLE. (United Press Association —By Electric Telegraph-Copyright). (British Official Wireless). Received June 10, 1.5 p.m. RUGBY, June 9. The full text is now available of the report of the Committee of Experts on reparations. The main effect of the committee’s work, which has been achieved with unanimous agreement, is to substitute a definite fixed liability to cover Germany’s entire obligations of reparations for the determinate scheme launched by the Dawes Conference in 1924. At present under the Dawes plan Germany.pays the equivalent of £125,000,000 a year for an indefinite period. It is important to note that while no juridical .connection exists between reparations and war debts, the experts have made a de facto relationship between them. They provide that if there is any reduction in the debts during the first 37 years two-thirds of this relief shall profit Germany and one-third shall benefit the creditor concerned.

A sum equal to £33,000,000 is payable without any right of postponement. The committee recognises that this is a conservative amount, but they consider it wiser to under-estim-ate than to run the risk of weakening German credit by fixing it too • high. France's share in this unconditional portion is £25.000,000. As to the major part of the annuity, Germany, by giving certain noticed can, in the event of grave economic difficulties, suspend it for a period of two years. The constant rise in the annual payments is to reflect the anicipated increase in Germany’s prosperity. The sources of the annuities are to be the German railways and the budget of the Reich.

The experts have decided to maintain deliveries in kind for a period of 10 years. During the first year their value will be £37,500,000, but they will decrease progressively to £15,000,000 in the tenth year, when deliveries in kind will cease altogether. Of these deliveries Great Britain takes 23 per cent, and France 54 per cent. As to Great Britain’s share in the whole annuity, the object of the British experts has been first of all to provide year by year cover for cover for the American debt, leaving over and above this a constant sum to meet the Dominions’ claims.

In the first full year, beginning next April, Great Britain will receive £18,350,000 out of a total annuity of £85,400,000. The largest sum that will come to her is £22,850,000 —in 1940. In the last of the 37 years she will receive £20,500,000 out of a total of £121,450,000. The net result from Great Britain’s point of view is that her share is somewhat lower than would come to her on the existing basis. INTERNATIONAL BANK. In regard to the International Bank; which is to bo established, the experts say that a “ban excludes from its procedure all political influences and business principles and practices that may intervene to facilitate the settlement of Germany’s obligations. The office for the reparations payments and its associated organisations in Berlin will be retired, and the Reparation Commission’s relations with Germany will be terminated. Germany will assume tile responsibility for raising and transferring the annuities and the bank will take over the work of their receipt and disbursement.” In order that the proposed International Bank may not enter into competition with existing institutions, it is proposed to put its administration in the hands of the existing central banks and so give them control over any operations that might merge into competition with them. It has not yet been decided in which country it shall place its offices, though Belgium, Holland and Switzerland have been mentioned.

Under the experts’ plans the German revenues from alcohol, sugar, tobacco, etc., are no longer controlled; railway and industrial bonds cease to exist and the index of prosperity is abolished. The railways remain liable to a contribution, which is to take the form of a direct tax to bring in 600,000,000 marks a year for 37 years. But the complete independence of the German railway is assured. The plan, indeed makes it clear that all liabilities of Germany arising out of the war are covered by the annuities contained in the plan. : ATMOSPHERE LEFT BY WAR. In the concluding chapter of the report the experts plead for the obliteration of the atmosphere left by war and stress the need for co-operation and goodwill in carrying out the settlements, which they say, should have the effect of bringing all the nations concerned to a higher level of economic stability and reaching a closer understanding than ever before. The report has now to be submitted to the various Governments concerned for their adoption. The experts ask that it shall be accepted as a whole.