GERMANY AND FRANCE.

New Zealand Herald, Volume LXIII, Issue 19474, 2 November 1926, Page 9

GERMANY AND FRANCE.

HOPE OF RECONCILIATION. OHANCELLOR STATES TERMS. RELEASE OF OCCUPIED AREA. Bt TelftffrspE'—Press Asgocisticifc—Copjmeht. (Received 7.5 p.m.) A. snd N'.Z. BERLIN, Nov. 1. Tho Chancellor, Dr. Marx, attended a meeting of the members of the Centre Party at Erfurt, Prussia. He said protracted negotiations were necessary in continuation of his discussions at Thoiry with M. Briand, French Foreign Minister. Germany could demand the release of her occupied territories only when means of rendering financiaJ aid to France by way of the mobilisation of railway bonds could be found. American co-operation was essential, but pending the ratification of the debt settlement agreement between France and America this was doubtful, as even a Franco-German loan would be regarded with misgivings. A complete reconciliation between France and Germany was only possible by the absolute liberation of Germany's occupied territories Nevertheless, the important fact of the Thoiry negotiations remained. After the Thoiry conversation on Septem 17 the Berlin correspondent of the Observer wrote: — The big trump card in the Stresemann policy is still to come when Germany expects to receive goods in return for what she gave. Though no official opinion of what exactly the two Ministers arranged in privacy is forthcoming yet, it is understood that regarding aD the big problems in which both countries are concerned complete understanding has been reached. The evacuation of the Rhineland and the Saar territory on France's part will be met by the effort of Germany to set France on her financial feet again. In connection with this Germany will put on the market the railway and industrial bonds which she deposited as security at the time of the Dawes pact. From Herr Stresemann's speeches has been gathered the fact that financial questions must now make way for those of nigh politics. The Geneva correspondent of the same paper said : It is no secret that the principal German desire is to bring to an end consideration of those relations from the military standpoint. Technically, this means, first of all, the liquidation of the outstanding Allied demands concerning German disarmament Morally, it means for the Germans the end of the military occupation of German territory. Military occupation, as the Germans say, is always politically harmful to a country which exercises it. It was harmful to them in Belgium during the war. It is now harmful to France on the "Rhine. When the indiscretions of a French soldier who dined too well, or a drunken German civilian were made the subject of an exchange of Notes between the Governments normal relations were impossible. It is equally no secret that France seaks economic concessions and financial support as a proof of goodwill or, in the phrase used in French circles, " political treatment of economic questions." No objection in theory is offered on the German side to such a view. Lack of capital throughout the countries of Continental Europe to enable them to develop the natural and economic resources in which they are still rich, although they are apparently poor, will inevitably throw their interest together. A comnartson of gold reserves of the United States with those of all European countries, even including England, illustrates this temporary famine of capital in Europe. The need of Germany for French ore and of France for German coal and manufactured steel, tends further to bring those particular countries closer.