BRITISH VIEWPOINT

New Zealand Times, Volume L, Issue 11409, 4 January 1923, Page 5

BRITISH VIEWPOINT

PAYMENT BY GERMANY. INTERVAL OF FOUR YEARS. By Telegraph.—Press Assn.—Copyright A-ustrsllan and N.Z. Cable Association. (Received January 3, 5.5 p.m.) PARIS, January 2. At the conference to . decide the questions of the payment by Germany of reparations and inter-Allied debts, iM. Poincare, after detailing the .French plan, said that Herr Cuuo (German Premier) requested the conference to hear Herr Bergmann enunciate tiie new Qerman proposals. M. Poincare objected, suggesting that Berlin's scheme shopld be submitted in writing. The Allies unanimously agreed. Mr Bonar Law then sub mitted to the conference the following British soheme covering reparations and inter-Allied debts. Britain proposed that Germany should pay noth mg for.four years, £100,000,000 yearly for the next four years, £125,000,000 the next two years, and after a decade £166,000,000, or such smaller sum of not less than £125,000,000, as an impartial (tribunal. may fix, the Germans to pay in 5 per cent, bonds redeemable at Germany’s call. BONDS REDEEMABLE ON EASY 1 TERMS. At the outset' the bonds would be redeemable on easy terms, gradually rising to par at the end of thirty-two years. The bonds would be divided into two series,, the first representing fixed payments,' rising to £125,000,000 annually, and the seoond representing additional payments from eleventh year onwards. There would be no sinking fund., but redemption would be permitted on suob liberal terms, that if German credit was restored the saving on interest would cover interest and sinking fund on German loans raised for redemption purposes. This' allots Germany to change her permanent into a terminable debt - without expense. REAL OiriNCE FOR GERMANY. In order to give Germany a real chance there should be complete freedom of payments in foreign currencies during the initial period, and a minimum of deliveries in kind. Supplies of coke 1 to France, coal to Italy and possibly dyestuffs, may be continued’ on a reduced scale. The plan was offered on condition (1) that Germany stabilises the mark and restores thb budget, (2) accepts Allied financial supervision, (3) submits on the failure of the first -condition to the seizure of revenues and assets, and to further military occupation of German. territories on the understanding that the reparations plan is accepted and all sanctions dropped. . INTER-ALLIED DEBTS, d bts*** 11 t/ 1 ® matter of inter-Allied (1) ?hat gold deposits held-by Britain as security for inter-Allied debts be applied toward the reduction of debts. (2) The first series of German bonds, which will he j reoeived by France in respect of the Belgian war debt, arid £75,000,000, which will be received by Italy for the reparations,' are to ;Be transferred to Britain. (3) The balance of net war debts between European Allies are to be completely written off on condition that the debtors transfer their interests in the second series of bonds to a pool for distribution to those Powers indebted to America in proportion to their American debts. GOVERNING PRINCIPLES. The governing principles of the plan are:— . (1) To fix Germany's minimum liability and to fix an additional liability if . Germany prospers, which shall not be too burdensome* and can be adjusted to circumstances. ' (2) To substitute for the present fixed debt which the Allies owe * Britain almost a total remission, While Germany’s excess payments go to pay America. Germany’s primary obligation will be to put into the lorn of fifty milliards gold marks of thirty-two year bonds bearing no interest for four years, -four per cent, for the next four, and five per cent, thereafter. The first series of fifty milliard gold marks is to be issued forthwith, and is to be repayable (by or before* 1954. The second series of 17.81 milliard gold marks being deferred interest on tbe first series to 1933, will be repayable in 1965. Eighty per cent, of the first series of bonds will be distributed among the Powers on the Spa schedule. The Reparations Commission will keep the other twenty per cent, for expenses. Belgium will waive her priority rights. CONTROL OF GERMANY’S FINANCE. It is proposed that a Foreign Finance Council shall control Germany’s finance. The council will consist of representatives of Britain, France, Belmum, Italy, America and one neutral. The German Finance Minister will exofficio be chairman. Interference with German democratic independence is inevitable, but the council will have wide powers, which shall expire at the erid of 1928. SOHEME CAUSES SENSATION. The British soheme caused a sensation at the Conference, and it is understood that the French delegates regard it as totally unacceptable on the grounds that it jettisons the Versailles Treaty.