INADEQUATE OFFER.

Manawatu Times, Volume XLVI, Issue 2646, 15 May 1923, Page 5

INADEQUATE OFFER.

STERN REPLY TO GERMANY. NO READINESS TO GRAPPLE WITH REALITIES. UNEQUIVOCAL REJECTION. [By Electric Cable —Copyright.] [Aust. and N.Z. Cable Association.] (Received Monday, 7 p.m.) LONDON, May 13. The text has been issued of the British reply to the German Note, which was handed to the German Ambassador to-day for transmission to Berlin.

The Note states that Germany's proposals came as a great disappointment', and the unfavourable impression they created in the British and Allied Governments should have been foreseen and guarded against. The German proposals, far from corresponded either in form or in substance, with what Britain might" reasonably have expected, for the following reasons:— •

Firstly, Germany offered a sum far below the moderate amount forming the basis of the scheme Britain submitted to the Paris Conference In January, a total which Germany must have known in advance would be altogether unacceptable. Even this inadequate sum was made dependent upon the issue of a series of international loans, the success of which, in the circumstances predicated, must be largely speculative. Moreover, Germany proposed arrangements in connection with these which involved less burdensome conditions to Germany if the loans were unsuccessful than if successful. Therefore t'hey did not contain an incentive to Germany to attempt to raise the loans. Secondly, Germany's failure to indicate more precisely the nature of the guarantees she was disposed to offer was particularly regrettable, Britain was persuaded that Germany, in her own interest's, would see the advantage of displaying greater readiness to grapple with the realities of the case, and would proceed to reconsider and expand the proposals, converting them into a feasible basis for discussion. ]'n such a discussion Britain, at a suitable moment, would be ready to participate by the side of her Allies, with whom she shares a practical interest; in a question which she has no intention of abandoning, but the first step towards terminating the present' situation of international peril must be a more serious and precise contribution from Germany than has hitherto been forthcoming. ITALY OF THE SAME MIND. (Received Monday, 8.5 p.m.) ROME, May IS. Signor Mussolini's Note reiterates that the reparations and inter-Allied debts are inseparable, and expresses willingness to support Italy's share of the sacrifices in order to insure an economic settlement, but declares Germany's offer does not afford a basis for int'er-Allied discussion. FRENCH WELCOME REPLIES. (Received Monday, 5.5 p.m.) PARIS, May 13. Official circles welcome the British and Italian denunciation' of the German offer as uns.cceptable, and un•worthy of discussion.