THE REPARATIONS

New Zealand Times, Volume XLIX, Issue 11225, 2 June 1922, Page 5

THE REPARATIONS

CRITICAL PHASE PASSED MR LLOYD GEORGE DEPLORES AMERICA’S ABSENCE. NO QUARREL WITH FRANCE. By Telegraph.—Press Assn.—Copyright. Australian and N.Z. Cable Association (Received Juno 1, 7.5 p.m.) LONDON, May 31. In the House of Commons, Mr Lloyd George matfe a statement dealing with the reparations. He said that the Reparations Commission had not yet been able to sav what their definite answer would he to the German proposals. Therefore it was difficult for liiin to enter upon a discussion of the subject. Anything he might say could hardly be useful i t the present moment and might easily he harmful, but it might be assumed that the critical phase presented a few weeks ago had passed. There was one fact which had upset the balance of the Reparations Commission, as it had also upset the League of Nations. That was the absence of America. GERMANY’S EFFORT. The absence of America from the machinery of the Versailles Treaty made it less effective and made it work with less precision. There was no cause for disagreement between Fiance and ourselves. He was glad Germany had made a real effort to meet the requirements of the Reparations Commission. His conviction was that safety for France could he found only in the practice of what was provided for in the League of Nations Covenant, Wore wo committed in any way to join in an invasion or any further occupation of German territory what ground of objection could there he to the suggestion of an international loan as a means of enabling Germany to pay a laTge portion of the reparation demands? He believed Germany was honestly doing her best in face of very considerable political difficulties; consequently, she was entitled to every consideration and respect. BRITAIN’S RESPONSIBILITY.

A policy of non-fulfilment by Germany would he a policy of disaster for her. It was not a question of France acting alone if there- was a defiance of the Treaty of Versailles. We were signatories of it, and were committed to it. If a Government did come in Germany to resist the treaty, it was not France that would be left alone to exact conditions. We should act. We had stood for a policy of moderation and restraint, and thereby rendered ourselves liable to a good deal of misrepresentation in France. We should still stand for moderation as well as for a policy of fulfilment. Any isolated action by oux&llv would be disastrous to the Ententes A proposal had been made outside, that Britain should remit the whole of her £3,000,000,000 of debts Wing her by other countries without receiving a remission of £1,000,000,000 which Britain owed- He declared that no Govemmtnt could possibly contemplate such a thing, although we were perfectly willing to enter an international discussion with a view to obliterating the war debts owing to Britain provided we received some benefit in regard to the debts which Britain owed.

REPLY TO GERMANY

COMMISSION ISSUES WARNING. NO DEPARTURE FROM CONDITIONS. (Received June 1, 9.55 p.m.) PARIS, June 1. The Reparation Commission, replying to Germany, while regretting that Germany did not begin such steps and promised constitutes serious eland promised constitutes a srious effort on Germany’s part to meet the CbmmiseSon’s requirements. Therefore they confirm the provisional moratorium granted on March 21st. The Commission, however, points out that this postponement is liable to cancellation at any time if the Com mission is satisfied that Germany has failed to carry out the conditions laid down. The Commission reserves the right to cancel the postponement if through 1 her failure to raise an international loan Germany fails to carry through her promised arrangements regarding the floating debt, or fails to find other approved arrangements for dealing with her Budget deficits and floating debts.

GERMAN PRESS ANGRY

POLITICAL CRISIS PROBABLE, (Received June 1, 9.55 P.m.) BERLIN, June L The press generally adversely critv rises the German reparation note, and it is already suggested that a political crisis will arise in that connection when the Reichstag resumes after me Whitsuntide recess. To-day the People’s Party supported the Junkers in a no-oonfidenoe motion, which the Reiuhstag nevertheless defeated by a substantial majority. The “Deutsche Allgemeine Zeitung,” Herr Stinnes’s organ, declares that the Note is the most perilous and dishonouring to Germany ever issued.