GERMAN REPARATIONS.

New Zealand Herald, Volume LXIX, Issue 21223, 1 July 1932, Page 11

GERMAN REPARATIONS.

NO MORE PAYMENTS

CLEAN SLATE DEMANDED.

LAUSANNE PARLEYS.

REVISION OF TREATY.

BERLIN'S INSISTENCE.

EBy Telegraph—Press Association—Copyright.

(Received .Tune 30, 8.15 p.m.)

LAUSANNE, Juno 29.

There were important developments at tho Reparations Conference at Lausanne Hvhcn one critical phase in tho proceedings was passed, largely owing to the intervention of the British Primo Minister, |Mr. Mac Donald. Tho publication by the German Chantellor, Hsrr von Papen, of a statement regarding the l(sng conversations held yes. terday between tho delegates from France, Germany and Britain, led to fears that tho conference was in danger. These fears weio dissipated after a meeting held in the evening at which the representatives of the rix inviting Powers proceeded to mako arrangements for completing tho .work of tho conference. At the conclusion of yesterday's meeting a communique was issued stating that Mr. Mac Donald would report on the position resulting from the Franco-German conversations. A cloud was cast over jthe conference when Herr von Papen's yersion of yesterday's conversations was published in order to correct what are! alleged to have been misleading reports| in the French press.

Herr von Papen's Statement.

In the course of Herr von Papen's announcement it was stated that Mr. MaoDonald had asked the German Chancellof whether he could not do something t« Jb'ring about a final solution. Herr von Papen stated that he had replied as follows:—"The confidence of the 'World can only be restored if the victorious Powers can decide to remove the dilcriminations contained in the Treaty «f [Versailles.

"If in this manner Germany's rigit to equality and security i s ' reestablished I can envisage the possibility of Germany participating in a general effort toward the reconstruction of world trade in the form of a contribution which presupposes, however, the re-estib-lishmsnt of the economic equilibrium;in .Germany and the rest of the world."t "Not a Single Mark: More," | . Herr von Papen was reported to have 1 Etated that he accepted the prino'ple of making a final payment in lieu of reparations, such payments onljr to made when normal conditions had been restored in Germany. However the German delegation denied this report. They said their position was 1 unchanged. Germany would not pay a single mark piore of reparations. But, once the slate was wiped clean, she would be willing to contribute, like the other Powers, toward the reconstruction of Europe, Lively Interest Created. J The bureau of the conference will consider the fixing of a period of suspension, .also the conditions of the German Government's payment and the amount of it. I The publication of this document created lively interest at Lausanne and gave rise to many unfavourable mmours. Herr von Papen and the French Prime Minister, M. Herriot, had further conversations and Mr. Mac Donald met them in a further attempt at mediation. The Italian Foreign Minister, Signor-Grandi, also attended. Lat<Sr the four statesmen left their hotel and scrolled along the lake side to the Chateau d'Ouchy, where they were joined by the delegates from Japan and Ueigium.

Conference Work to Continue,

At the meeting of the representatives of these six inviting Powers which followed general consent was secured to the setting up of a committee of 13 members, over which Mr. /Mac Donald will preside, to draw up a plan lor the settlement of the reparations question. A second committee including the Ministers of Commerce is also to be formed to study the economic crisis and the present tendencies in World trade.

It is understood that the work of the conference will be continued, although the heads of the delegations for the present will be absent from Lausanne. Mr. Mac Donald is to return to London to confer with Lis Cabinet colleagues who are going to tho Ottawa Conference. Herr von Papen will return to Berlin and M. Herriot to Paris.

Proposed " Restoration Payments."

Mr. Mac Donald spent a wearying day Xnainly in conferring with Herr von Papen and<M. Herriot emphasising the importance of the issues at stake. Mr. ■MacDonald insisted on the msychological importance of France dropping the word " reparations " and substituting the phase " restoration payments " in *ho hope// of enabling the French and German Governments to faco hostile Par liarnents with a settlement.

However, tho present difficulty is to devise a scheme whereby Prance will derive material benefit from " restoration payments."

• German circles hint that the Reich w ould subscribe to a restoration pool of .•which the Bank for International Settlemenr.s would be trustee, Tho amount suggested is £150,000,000, which is about * w o annuities under the Young Plan.

Germany's Conditional Subscription.

from Berlin, however, sugR e H that the subscription by Gciv Hiariy is still conditional upon the abolit'on of discrimination against her in the Treaty 0 f Versailles, which France and "J)c other /Powers so far have refused to consider. ' '

A committee of seven members, under •Mr. Mac Donald's chairmanship, continued Bitting u n tji midnight discussing tho pool c n<:mo to assist European reconstruction. Ihe delegates took a brief respite, ut no solution was foand when they reiint'Ti l so t ' l ° ,nee 'ing was adjourned .uutij to-morrow morning.