GERMANY AND THE ALLIES

New Zealand Times, Volume XLIX, Issue 11292, 18 August 1922, Page 5

GERMANY AND THE ALLIES

IEMUTIOIS CGHSISSION HOLDS IKE (El DISCUSSION OF PROPOSED MORATORIUM HOW WILL BELGIUM VOTE? Future action in connection with the impasse that has arisen as the result of the failure of the London conference depends on ths outcome of the Reparations Commission’s meeting in Paris yesterday. The big question for decision is whether Cermany should be granted a moratorium, and it is shown in the latest cables that Belgium practically holds the key to the situation. As far as matters have gone there is no evidence that a breach fn the Entente is likely. The newspaper prophets talk of a further conference and this idea is supported in some French political circles. Meanwhile it is evident that French public opinion endorses the attitude taken up in London by M. Poincare.

THE MORATORIUM EYES ON BELGIUM. ATTITUDE UNCERTAIN. By Telegraph—Press Assn. —Copyright. Australian and N.Z. Cable Association. (Received August 17, 8.50 p.m.) PARIS, August 17. The Reparations Commission meets to-day. It holds the key to the situation. It is assumed here that the British and Italian Commissioners will vote in favour of the moratorium, and it is believed that everything hinges on Belgium’s vote. If Belgium votes with France against Britain and Italy, it is certain that the President of the Commission will give his casting vote against any moratorium. EXCITEMENT CALMS DOWN NO RUPTURE BETWEEN ALLIES. FURTHER CONFERENCE DISCUSSED. (Received August 17, 8.50 p.m.) PARIS, August 16. The earlier excitement over the failure of the Conference has calmed down, and the situation is being more coolly considered. . A suggestion tbat Parliament should be summoned receives little support from the Press. “L’lntransigeant” declares: “This will only dramatise the failure.” It is noteworthy that several newspapers are emphasising the fact that though the Conference resulted in divergent views regarding the method of making Germany pay, there was no rupture between the Allies. Some political circles are hoping that the Reparations Commission will reach a similar deadlock in order to force a further conference in November, if possible, including the United States, when the whole problem of reparations and inter-Allied debts could be discussed and settled. A SUGGESTION GERMANY AND FRANCE TO SETTLE DIFFERENCES. (Received August 17, 8.50 p.m.) LON' jN, August 17. The “Daily Nev.s” Berlin correspondent states that influential French interests are proposing to corresponding German interests that, in the event of the Entente breaking up, Germany and France should settle their differences privately. Owing, however, to expulsions from Alsace, and the ascription of the present German ruin to French intransigence, the Germans are_ nob responding sympathetically. It is believed also that the Government would be equally unresponsive if the French Government confirmed the financiers invitation. NEXT MOVE DISCUSSED WILL FRANCE VIOLATE THE TREATY? SUCH ACTION UNLIKELY. LONDON, August 16. British official opinion does not believe that France will take independent action precipitately. There are legal difficulties under the Versailles Treaty, and M. Poincare is a stickler for the letter of the law. Under the treaty the matter reverts to the Reparations Commission, which has already indicated the trend of its opinion by publishing the text of the proposed resolution. As in the Allied Conference, when M. Poincare was in a minority of one, so in the Reparations Commission France is in a minority. According to the Treaty the Commission is entitled to grant a moratorium on a bare majority, and onlv when it decides that Germany has wilfully failed to meet its obligations can France recover complete freedom of action. If she acts otherwise she will be violating the Treaty of Versailles. It is considered most unlikely that the Reparations Commission would declare that Germany has defaulted. For France to act With no reference to the Commission would be indefensible. It is not thought, therefore, that she will do so dospite M. Poincare’s reported statement that his Government would retain its liberty of action, whatever the Reparations Commission does. Meanwhile Britain relies on the Treaty pro. cedure. Another element of hope lies in the optimism of M. Theunis, French Finance Minister, who declares that he is convinced that the Allies will meet again soon and the problem be settled satisfactorily. POINCARE’S ATTITUDE APPROVED BY FRENCH CABINET. Reuter’s Telegram. PARIS, August 10. The Cabinet meeting approved M. Poincare’s attitude at the London Conference, and declared itself at one with him in his stand. An earlier message stated:— The Paris correspondent of the “Daily Mail” says France’s next move will be the summoning of a Council of Ministers on Wednesday next, when M. Poincare will unfold his plans. It is reliably stated that these will insist on the use of all the rights given to France by the Versailles Treaty. A feeling exists that there should be an early summoning of. Parliament to ratify these decisions. While no attempt is made to minimise the seriousness of the situation, it i 6 thought that the breakdown may bring the Allies together in a general

discussion of debts and indemnities. France is ready to restart the negotiations at the point where they stood before the issue of the Balfour Note. Questioned on hie arrival, M. Poincare emphatically affirmed his desire to maintain the Entente. He said: “We disagreed, and to-morrow can act separately, but there will be no breach of the Entente. The friendship of our countries is far above the present difficulties. however serious they may appear.” “DOWN WITH BOSCHES!* POINCARE ACCLAIMED BY HI3 PEOPLE. . PARIS. August 18. When M. Poincare arrived at Paris, ho received an unprecedented cstlsu elastic welcome, the crowd shouting? “Thanks for France.” “Down with tbd Bosches', make them payl” MARSHAL FOCH SUMMONED Reuter**! Telegram. , PARIS, August 18. It is stated that Marshal Koch and General Degoutte have been summoned to Rambouillet in connection with if Cabinet meeting there. WHERE GERMANY STANDB must feed people first. SUGGESTION TO ALLIES. Australian and N.Z. Cable AanrfaHak LONDON, August 16. The Berlin correspondent of the “Daily Chronicle” interviewed Dr Wirth, Chancellor and Minister for Foreign Affairs, who said: “Our policy must be first bread for the people, then reparations. We can and will observe our obligations only so far as assuring the bread supply for the peoples’ physical existence permits. We have goodwill and patience to a large degree, hat oar strength is ended. For mere humanity’s sake we most assure the people bread to prevent them sinking into misery and despair. The difficulties of securing bread have been increased by the French action in AlsaceLorraine. Only a moratorium extending over many months will be of any value. Six months -would havo been quite sufficient if granted a while ago, but as the mark depreciates the moratorium becomes less and less effective. The psychological effect of the moratorium would have been of gnat value. That value is now absent. The feeling of danger and uncertainty is one of the worst features of the situation.” Dr Wirth discussed the flight of capital, declaring that the beet preventive is to make it worth while to keep capital at home. JThat could best be achieved by stabilising the mark, which could only be done hy halving the reparations. “Wo need confidence for the mark. The catastrophe is one to the dwindling confidence caused byi the fear that France wants life. That’s the great question —the sword over our head. The collapse of Germany would be an unparalleled thing. If goodwill is introduced fattq Europe, Germany may even yet b 4 saved.” BERLIN, August 16. The Government has addressed Note* to the British, French, Italian, and Belgian Governments declaring thab owing to foreign currency require■menfs for urgently-needed necessaries) of life and the fall of the mark, it i* unable to meet the clearing-house pay* ment of £2,000,000 due to-day. DIFFICULT TASK AHEAD TO ASSURE SOCIAL ORDER. CHANCELLOR REPLIES TO OTATBt MENTS. (Received August 17, 9.40 pm.) BERLIN, August 16. Dr Wirth, interviewed by foreigd journalists, said: “Germany is steering full sail for conditions similar to those prevailing in Austria. It is absolutely impossible to keep Germany together when her currency is worthless.” He denied M. Poincare’s allegations that Germany offered a four millions loan to Gzecho-Slovakia. There' was not a word of truth in the statement, and a further statement by M. Poincare that Germany had founded a bonk in Denmark, Koumania, and Holland was equally untrue. German financiers were interested in banking concerns in Holland merely to enable German trade to re-link with the outside world, as all German banks in Allied countries were dosed down. If Germany desired to depress the currency by the sale of marks abroad she would scarcely attempt this through specially established banks. Dr Wirth proceeded: “Our present inability to pay the reparations in gold will quickly be followed by an inability to pav in kind. Yesterday’s payment of half a million sterling was taken from the funds required to purchase foreign cereals for the people’s bread. It is liko being at the deathbed of a nation when one surveys the situation. Our great task in the next months will bo to assure social order in Germany. Already there it* a seriour threat of unrest everywhere.’*