GERMAN REPARATION.

New Zealand Herald, Volume LXIX, Issue 21076, 9 January 1932, Page 9

GERMAN REPARATION.

j CESSATION OF PAYMENTS. ANXIETY FOR DECISION. FACTOR OF THE PRESIDENCY. By Telegraph—Press Association—Copyright. (Received January 8, 9.5 p.m.) BERLIN, Jan. 7. The Opposition parties in Germany will assent to the .German Ambassadors to Britain, France and Italy informing the Chancellor, Dr. Bruening, of the altitude of those Governments regarding Germany's desire for a financial solution of tho reparations problem by a cessation of payments. A conference was held to-day between Dr. Bruening, tho Minister of Defence, Herr Groener, and the leader of the Nazis, Herr Hitler, with tho object of securing the support of the Nazis, which is essential, to Marshal von Hindenburg's re-elec-tion as President on May 5. This is considered to be vital by tho Government, inasmuch as the President's personality is regarded as Germany's greatest asset. Herr Hitler reserved his decision. Under the Young Plan for payment of reparations, Germany is to make to Fiance, the British Empire, Italy, Belgium, Rumania, Serbia, Greece, Portugal, Japan and Poland, annual payments of £30,600,000, without any postponement from 1930 to 1966, and during the same period other annual payments varying from £51,480,000 to £87,035,000, which, under certain conditions, might be postponed for a period. From 1966 to 1988 annual payments are to be made varying from £78,345,000 to £44,890,000. Tho effect of the funding of the various debts owing by the Allied and associated Powers to Great Britain and the United States is shown in the following table:— War debt, Annuities as funded. payable. Due to £ £ Great Britain 1,349.582,567 1.187.825.000 United States 2.370.932.875 4,553,255.495 By the funding agreements it will be seen that Great Britain will receive in principal and interest, if all payments are made, £161,757,567 less than the principal amount of the original debt. The terms imposed by the United States, lenient though they are, enables her to recover in the period of 62 years a sum in satisfaction of interest and principal equal to nearly twice the amount of the original debt as funded. The total amount of annuities payable over 62 years by each Power in respect of war debts owed to the United States and Great Britain is given below. To To United States. Great Britain. Payable by— £ £ Great Britain . 2,282.047,603 France . . 1.407.056.323 799.500.000 Italy . . . . 494.728.253 276.750.000 Poland . . . 89.524,839 Belgium . . . 149,554,212 Czecho-Slovakia 64.276,322 Rumania . . 25.172.519 31.250.000 Yugoslavia . . 19,557,048 32.800.000 Greece . . . . 4.177.397 23.550.000 Portugal . . The aggregate amount outstanding on March 31 last on account of war loans made by Great Britain to the Dominions and colonies was:— Australia . . . . £79.724.000 New Zealand . . .. 26.412,000 South Africa . . .. 7,500,000 Newfoundland .. .. 400,000 Trinidad .. .. 433.000 , Jamaica . . . . • . 53,000 Total .. ..£114,522,000 With regard to these debts, it should be remembered that if they are cancelled as between Power and Power, as the Governments of the lending country and its citizens who supplied ' the money, each loan will still remain a debt, on which interest has to be paid. Britain will have to pay interest to her citizens on money which she borrowed from them and re-lcnt to Australia, to Canada, to New Zealand, and to France; the United States will have to pay interest on money borrowed from citizens of the United States and relent to Great Britain, France, 'ltaly and other Powers. LAUSANNE CONFERENCE POSSIBLE POSTPONEMENT. FRENCH CABINET PROBLEM. LONDON. Jan. 7. A message from Paris states that as a result of the death of the Minister of War, M. Maginot, and tho ill-health of the Foreign Secretary, M. Briand, the newspapers predict a considerable reshuffle of the Cabinet, perhaps even its resignation, followed by the Prime Minister, M. Laval, choosing a most pronounced Left Wing Ministry. The Sun-Herald news service says it learns that M. Briand's resignation is imminent. That would necessitate a complete reconstruction of the Cabinet. Probably also it would involve postponing the Lausanne "Reparations Conference, which the British Prime Minister, Mr. MacDonald, is not likely to oppose. M. Briand's illness has been kept secret for several weeks. BRITAIN PREPARING. POLICY OF THE CABINET. PRELIMINARY CONSIDERATION. British Wireless. RUGBY, Jnn. 7. It is understood that good progress has been made in considering tho preliminary work for the Lausanne Reparations Conference. Sir F. W. Loilh-Ross, Deputy-Con-troller of Finance to the British Treasury, who has been carrying on conversations with French exports on the reparations question, will discuss with tho Prime Minister the whole question in tho light of the report discussed at yesterday's Cabinet committee meeting, before lie returns to-morrow to Paris to resume conversations with the experts of the French Ministry of Finance. Matters connected with the conference will be considered by the Cabinet on Wednesday. •' The Times says: '* It may well be that when Cabinet meets next week the work may have .progressed so far as to enable decisions to be taken." The two principal delegates appointed to attend tho Conference are Mr. Neville Chamberlain, Chancellor of the Exchequer, and Sir John Simon, Secretary of State for Foreign Affairs. It is uncertain whether the Prime Minister will attend. The Lausanne municipality has placed the Hotel de Chateau Ouchy at tho disposal of the Conference. This hotel was the scene of the 1922 Conference. Plenary or public sittings will be. held in the Hotel Beau Eivage.