GERMANY'S WAR BILL

New Zealand Times, Volume XLIX, Issue 11305, 2 September 1922, Page 5

GERMANY'S WAR BILL

REPARATIONS COMMISSION REACHES DECISION PAYMENTS IN GERMAN TREASURY BILLS BELGIAN PROPOSAL ADOPTED The difficult problem of tho payment of reparations by Germany—accentuated by the currency collapse—has been solved at last In so far as the Reparations Commission is concerned. It was expected that Britain’s proposal for an unconditional moratorium would result in even voting, the chairman’s casting vote defeating the scheme, but that prediction has been proved to be a little wide of the mark. The actual position is that Italy did not vote, thus causing the British proposal to be defeated, France and Belgium voting against. This was followed by the adoption of the Belgian proposal allowing payments to the end of the year in German Treasury Bills.

THE DECISION

PAYMENT IN TREASURY BILLS. BRITISH PROPOSAL REJECTED. By Telegraph—Press Assn.—Copyright. Australian and N.Z. Cable Association LONDON, August 31. The Reparations Commission, by two votes to one—ltaly not voting—rejected Sir John Bradbury’s motion in favour of an unconditional moratorium ‘for Germany until the end of the year. The caramispion unanimously adopted the Belgian proposal allowing payments to the end Of the year in German Treasury Bills. (Received September 1, 7.56 p.m.) LONDON, August 31, Before the Reparations Commission met M. Dubois, chairman, had a lengthy interview with M. • Poincare. The commissioners then met informally before the official meeting opened. , It was expected that the moratorium would he refused by three votes to two, M. Dubois giving his casting vote. Hie commissioners unanimously agreed that the German proposals were unacceptable, but unanimity vanished on the question of the moratorium. The commission again adjourned, and M. Dubois again saw M. Poincare. When tho resumed only Sir John Bradbury (Britain) supported the granting of a moratorium to the end of the year. France and Belgium voted against, and Italy did not vote. The commission then adopted unanimously the resolution cabled. It is generally recognised that Germany’s respite is due to the generosity of Belgium. The plan adopted 'was submitted by Belgium and Italy jointly. It should be explained that monthly bonds, securing £14,000,000 wortn of bills when they mature, will be met' with gold marks. The Belgian -and German delegates will meet in Berlin or Brussels to discuss details, the only outstanding question being the character of the securities far acceptance by Belgium.

COMMISSION’S REASONS

AN OFFICIAL COMMUNIQUE. REFORM OF GERMAN FINANCES. (Received September 1, 7.55 pjn.) PARIS, August 31. The Reparations Commission to-night issued the following communique:—“In view of the fact that the commission has not seen fit to grant the moratorium requested by Germany it has not thought proper for the tame being to pronounce upon the proposals from Germany regarding coal and timber deliveries. The commission reserves the right to enforce measures similar to those offered by Germany if future coal* and timber deliveries are not satisfactorily carried out. The commission unanimously adopted a resolution as follows: — “The commission, replying to the demand for a moratorium, . dated July 19th, and considering that the Reich has lost all its credit at home and abroad, and that the mark has fallen to three- • thousandths of its value, decides: “(1) To postpone the decision upon demand from the Reich, until it- has completed a scheme for the radical reform of the public finances of Germany providing for: (a) Hie balancing of - the Budget; (b) in the event of the Governments represented on the commission assenting, for the eventual reduction of the external charges on Germany to an extent regarded as necessary for the reparation of the country; (q) for military reform; (d) for the issue of internal and external loans with a view to the consolidation of the financial situation. ‘•(2) That in view of the time necessary for the preparation and execution of the measures mentioned above the commission will > accept in payment of cash payments, due on August 15th and September 15th, and (unless other arrangements are subsequently made) for payments due on Octo-. ber 15th and December 31st, German six months Treasury Bills, hacked by guarantees upon which the German Government and the Belgian Government, to whom the payments have been assigned, must agree; in default of such agreement, hacked by guarantees, by means of a deposit of gold in the bank acceptable to Belgium.

RESPITE FOR GERMANY

GUARANTEES FGR BILLS NECESSARY. QUESTION OF FUTURE PAYMENTS. (Received September 1, 7.55 p.m.) LONDON, August 31. Sir John Bradbury, interviewed, said that the decision gave Germany respite from cash payments during 1922, provided she found suitable guarantees for Treasury bills. An alternative arrangement in default of guarantees was the earmarking of about £14,000,000 worth of the Reichsbanks gold, which, in Sir John Bradbury’s opinion, was undesirable, on the ground that it meant pledging a portion of the gold reserve in the Reichabank, which was an important factor in the interests of German credit. - -. • Sir -John Bradbury hoped that an arrangement would be reached for guaranteeing the bills. He added that the entire question of future payments, especially those for 1923, remained to be considered.

LONDON PRESS VIEWS

DECISION GENERALLY APPROVED. BELGIUM’S MAGNANIMITY. (Received September 1, 7.55 p.m.) LONDON, August 31. The London Press comments approvingly upon the decision regarding the reparations, except the “Daily Herald” and “Daily News.’’ The latter doubts if the decision will steady the mark or inspire Germany with the hope of a prolonged moratorium being the only solution of the problem. The “News” also declares that the provocative threats ever in the mouths of French statesmen must cease. The British part in bringing France to a proper frame of mind is to forgive the French debts. The “Morning Post” says:, “The existence of Europe as the centre of civilisation depends upon Germany’s response to the Allies’ generosity. The reparation way is hard, but it is Germany’s only way,to salvation, which can only be won at a price.” The "Daily Chronicle’* says: “In substance, Sir John Bradbury’s policy has prevailed. Thanks to the magnanimous and irresistible proposal by Belgium and the judgment and forethought of Belgian and Italian delegates, Europe has secured another breathing space.” , The “Daily Telegraph” says: “If the Allied Government® accept and endorse the Commission’s decision, they will he in a very different position in which they can convene with Berlin from that in which they would have been if Germany could see the Entente Powers, drifting apart and their refeervoir of goodwill rapidly emptying. The Commission did good work. It rests with their Governments to consolidate it, and look ahead betimes to the next and more difficult decision.”

The “Daily HeraM* declares: “M. Poincare manoeuvred the Belgians into such a positon thaY if, as seems inevitable, ithe Germans again ~ default iu four months? time, the Belgian Government will bo .compelled to consent to whatever penal measures the French Government may see fit to put intc operation.” (Received September 1. 7.55 p.m.) LONDON, August 31. The “Daily Express?’ understands that Geavnany waX offer three bonks, Deutscher, Dreedener, and Dieoonte, and r faiilling tiheAlßng?-. -acceptance of tber wiH deposit the money in Copenhagen or Berne.

FRANCE WANTS COAL

HOW THINKING GERMANS SEE (Received September 1. 7J55 pjn.) LONDON, Ann-net 31. The “Morning Fjst’a” Berlin cor. respondent says that most thanking Germans ore convinced that France wants coal, not reparations. If France ever occupies fhe Rohr, Germans there must work-for France or starve. German industry, having lost the Lorraine tom and the Burr doaL will only have one asset, namely, labour. France could then safely ajfow that labour to bu3d up Russia, which would enable France to secure reparation payments from an earning people ami later indirectly recover from Russia compensation for French investors. Tibia -new has prompted many quarters to Suggest a Franjoo-GenrHm. rapprodhemesit, -which would efiow German industry to grow strong <»sn without Frames fearing retaliation from resurrected Germany.