PAYMENT CAPACITY

Northern Advocate, 23 July 1923, Page 5

PAYMENT CAPACITY

GERMAN REPARATIONS.

ASSESSMENT iSY EXPERTS.

OCCUPATION UNAUTHORISED

(Received 10 a.m.)

LONDON, July 21

The "Daily diplomatic correspondent says that the draft British reply assents in principle to the German request for assessment by an impartial . body of experts of payment capacity,, but carefully omits t,o specify the composition of that body. ' The reply also suggests that the three types of guarantees offered in the German memorandum be considered without prejudicing the question of their completeness or sufficiency, The reply is not unfavourable to the German request for a conference with the Allies.. It contains no direct condemnation of passive resistance, but expresses regret at the calamities created by the Ruhr situation. » The reply is much shorter than the 'memorandum to the Allies. \ The '< Daily Express understands that the covering letter expresses the convietion that it. is desirable to appoint an international commission to investigate Germany's capacity to pay reparations, and indicates that Britain is not in a position to ask the German Government to abandon passive resistance in the. Jsuhr, because the British Government believes that the French occupation is contrary to the terms of the Treaty of Versailles. The letter adds that if- France is willing to refer the question of the legality of the occupation to the Hague Tribunal and to abide by its decision the British . Government would press Germany to abandon passive resistance immediately and also to abide by the Hague findings.—A. and N.Z. ~