REPARATION PROBLEM.

New Zealand Herald, Volume LXVI, Issue 20304, 11 July 1929, Page 11

REPARATION PROBLEM.

I'HOFOSED CONFERENCE.

INVITATION TO DOMINIONS. FULL REPRESENTATION. DECISION ON YOUNG PLAN. Australian Press Association—United Service (Keccived July 10, 5.5 p.m.) LONDON, July 9.

The. British Government decided to invito the Dominions to have full representation at the proposed Reparation Conference. Accordingly the Prime Minister, Mr. MacDonnld, sent out the invitations a week ago yesterday. The Governments of the Dominions were asked to appoint representatives to attend the. forthcoming conference to ileal with the Young plan.

In official circles it is said that the Dominions undoubtedly will be represented jis they were at the Peace and Dawes Conferences.

A message from Paris says the French Government is willing to acquiesce in the inclusion of delegates from tlie Dominions at the Reparation Conference. However, it feels that their inclusion will give Britain increased power at the conference, even though it be not held in London. Eritain In no Way Committed. A British official wireless message states that in the House of Commons today the Chancellor of the Exchequer, Mr. Pliili p Snowden, said the proposals for a final settlement of the reparation question recently submitted to the British and other Governments by the Committee of Experts were being considered by the Government with a view to holding a conference with the other Towers concerned. Members would realise that Britain was in no way committed to the acceptance of the recommendations contained in the experts' report. Questioned about the loss entailed upon Britain by reason of the departure from the Spa percentages as recommended in the report, Mr. Snowden said they amounted on an average to about £2,400,000 a year.

The capital value of the annual loss' would depend upon the interest tables selected, but applying the per cent, table, which the experts themselves had utilised for their calculations, it might be estimated at £37,500,000.

Most of the loss, however, would only begin to be incurred after 10 years. Priority to France and Italy.

Continuing, Mr. Snowden said the experts had recommended that the French Government should receive the preponderating share of the unconditional part of the German annuities, but that they should provide a guarantee fund amounting to £25,000,000, which, would be drawn upon to make good to the other creditor Powers any loss arising out of the postponement of the rest of the annuities.

Provided that this guarantee fund was effectively put into force the security of the British share, as compared with the French share, should not be appreciably impaired, so long as any postponement of German payments was limited to two years, as contemplated in the plan. But of course the guarantee fund would afford no security against a cessation or a longer postponement of the additional annuities.

To the extent that these wcie regarded as possibilities it might be said that the effect of the Young plan would be to concede priority to France and Italy.