GERMANY AND THE ALLIES.

New Zealand Herald, Volume LXVI, Issue 20251, 10 May 1929, Page 11

GERMANY AND THE ALLIES.

PROBLEM OF REPARATION.

AMERICAN EXPERT'S PLAN.

BRITAIN AT DISADVANTAGE.

Australian and N.Z. Press Association. British Wireless. LONDON. May 8. It is reliably stated that Mr. Owen D. Young's proposed 'reparation compromise) would involve for the British Empire a 3 per cent, reduction of the Spa percentages. That would gravely minimise tlio New Zealand and Australian shares, though it would not entirely eliminate thoin. The Committee of Experts on Reparation met in formal session in Paris today. It was expected that its deliberations would throw further light on Mr. Young's suggestions. As tlio experts were called together primarily to determine the amount that Germany can pay in reparation much surprise is expressed at Iho reports that Mr. Young's plan would operate unfavourably for Britain, involve a revision of tlio Spa scheme of percentages and entail variations to be made almost entirely at the expense of Britain.

Strong Comment in British Press. British newspapers strongly emphasise tho view that whatever reduction is allowed to Germany should be borne proportionately by all the parties in receipt of German reparation: As the question is still under examination and discussion hopes are entertained that an agreement will eventually bo reached which will safeguard tho principle of the Balfour Xoto arid leave undisturbed tho percentages agreed to at Spa. Tho diplomatic correspondent of the Daily Telegraph says the British Government is determined strictly to adhere to the Balfour Noto and not to expose the British taxpayer to further sacrifices on behalf of other Powers. It is learned from other sources that the British delegates maintain that the present conference in Paris is not concerned with tho distribution of reparation payments, but was called to fix a revision of the German debt. It will bo argued that tho Spa percentages aro outside the competence of tho experts. Mr. Young's suggested plan of distribution could not in any case form part of tho committee's report, as Germany is not concerned in tho distribution of reparation payments among tho Allies. French Estimates of British Loss. Messages from Paris say the newspapers there are unanimous in commiserating with Britain on her prospective loss under Mr. Young's proposals, but there is a certain acidity in their comments. For instance, Echo de Paris says

No doubt it would be absurd for the British Treasury to be despoiled iii this way, bub why did not tho British delegates send Dr. Schacht back to the Dawes system on April 19 ?

Le Journal says: No one has done more than Sir Josiah Stamp, the chief British expert, to reach an agreement, but it adds: Evidently an electoral advertisement was required by the British Government, which now finds the bill somewhat heavy. This paper estimates that the American plan would deduct £150,000,000 from the capital of reparation and £7,500,000 from each annual payment. Britain, who claimed £150,000,000 on behalf of her Dominions and for moneys payable to the United States, would only receive £32,500,000. FRANCE AND BRITAIN. FURTHER PRESS COMMENT. CRITICISM OF UNITED STATES. Australian Press Association—United Service (Received May 10, 12.25 a.m.) PARIS, May 0. The French press maintains a critical attitude toward Britain on the reparation question. Echo dc Paris calls on Sir Josiah Stamp to have the courage to retract his previous decisions and tell I*l r. Young his proposed annuities are not sufficient. Figaro says: The British Treasury has always counselled a maximum reduction of tho German debt, but on condition that it did not itself suffer. The British contention is untenable. It is impossible to satisfy Germany without it costing Britain something. L'Oeuvre sharply attacks the United States. It says the monstrous fact about the conference is that Washington does not stir. Not only does it demand milliards of marks from Germany for the United States, but it does not reduce its bill for tho expenses of the Rhinclaud army of occupation by one cent. BRITISH DELEGATE. COMPLETION OF REPORT. STRESEMANN IS HOPEFUL. Australian and N.Z. Press Association. (Received May 9, 11.25 p.m.) Times Cable. LONDON, May 0. A message from Paris says Sir Josiah Stamp's report on Mr. Owen Young's plan was completed at 2 a.m. yesterday. A copy reached Dr. Schacht at breakfast time and ho said ho required at least one day to study it. Hence there was no development in that connection yesteiday. Mr. Young's Spa percentage plan is also in a stato of suspense. It is understood that a counter-proposal will bo submitted. Herr Stresemann, German Foreign Minister, at a dinner tendered to foreign correspondents spoko hopefully of tho reparation discussions He said ho expected they would lead to a result that would bo beneficial to all.

The Paris correspondent of the Times says it is understood that Mr. Young s plan suggested the following changes in the Spa percentages:—

British Empire, from 23 to 19 per cent.; France, unchanged at 52 per cent.; Italy, from 12 to 10 per cent.; Belgium, uncertain but probably from 8 to 5 per cent.