GERMAN REPARATION.

New Zealand Herald, Volume LIX, Issue 18192, 11 September 1922, Page 7

GERMAN REPARATION.

ANOTHER BREAKDOWN. NO GUARANTEES TO BELGIUM RUPTURE OF NEGOTIATIONS. By Telegraph-Press Association-Copyright. (Received 3.25 p.m.) A. ivnd N.Z. BERLIN. Sept. 10. The Belgian delegation has broken off negotiations with the German Government regarding guarantees for t>; payment of Treasury bills to replace the reparation instalments duo in 1922. The German Government had nothing moro to offer by way of guarantees than it offered to Sir John Bradbury, chairman of the Reparation Commission. The Reiohsbank and other banks refused to have anything to do with the guarantees. The Belgian delegates warned the Germans that they could not prolong the deliberations, and would leave Berlin on Sunday, whereupon the Germans submitted a complicated plan of guarantees. The failure of Germany to offer' acceptable guarantees to Belgium for the payment of Treasury bills, which the Ileparl- - Commission agreed to accept in lieu of the remaining reparation payments due this year, leaves tho Allies confronted anew with the problem over which the London conference of last month broke down. Germany in July last applied for a longterm moratorium. Britain favoured the granting of her request, but France uncompromisingly opposed it. The Allied Governments in conference, finding themselves unable to come to any agreement, referred the question to tho Reparation Commission for decision. At its meeting a fortnight ago the commission rejected Sir John Bradbury's motion in favour of granting an unconditional moratorium until the end of the year, but accepted a plan submitted by Belgium and Italy jointly to accept in lieu of cash payments six months German Treasury bills for the remaining reparation instalments due this year, totalling £14,000,000. The payments were assigned to Belgium, and the commission stipulated that the bills should be backed by guaranh&ee upon which the German Government and the Belgian Government must agree, or, in default of such agreement, backed by means of a deposit of gold in a foreign bank acceptable ta Belgium-