WHERE FRANCE STANDS

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

WHERE FRANCE STANDS

GERMANY MUST PAY. THE DEVASTATED REGIONS. Prior to the opening of the Conference, Cabinet reviewed M. Poincare’s proposals, which were unanimously approved. When the Conference met in the afternoon M. Poincare declared the belief that- for Germany to accept any new plan with an intention to execute it was a psychological error. It was, therefore, necessary to substitute a plan wherefrom she would be unable to escape. The French statement covers sixteen foolscaps, and generally follows the “Petit ParisienV* summary. It opens with a declaration of France’s wish to work in the closest aooord with the Allies, but insists that Germany hßis given proof again and again of her refusal to honour her obligations. The French Government can neither in equity or fact pay the capital and interest on the inter-Allied debts unless it is at least covered by German payments for the devastated regions. FOREIGN LOANS TO GERMAN*. The French Government considers that foreign loans to Germany should be facilitated by the Allies in evety possible way. Such loans will very shortly be possible in view of the fact that Germany possesses real securities.' Steps must he taken to prevent the escape of German capital abroad and the hoarding of foreign securities by Germany. France demands that the Committee on Guarantees shall aaxxy out a programme that in the event of the Allies not ratifying same, or Germany defaulting, the sanctions should immediately operate. France is of opinion that Germany will be capable during 1923 of making, in conjunction with leading merchants, a sufficient effort to .honour her payments. She refuses to consider the moratorium beyond tWo yean. This would only be granted if Germany made an effort to issue loans, balance her Budget, and redeem her debt.'The occupation must cover the periods of the moratorium and subsequent payments in cash and kind. AVOIDING CUSTOMS BARRIERS. The Government is of the opinion that it is desirable to return to the economic procedure laid down at the London Conference in March- 1921, but in view of the objections rrnde it would-be prepared to raise. Customs dues on the Eastern frontiers and thus avoid Customs barriers east of tbe occupied territory and the Ruljr. France estimated the yield from this source at 200,000,000 gold marks per year. France also suggests that a tax of 30 per cent', should be levied from owners of mines which would yield 400,000,000 gold marks per annum. As regards the sanctions, France suggests that in the event of Germany not carrying out her programme there should first be military occupation of Essen, Bochum, and the Ruhr valley; secondly, the establishment of a Oustoms harrier east of the occupied ana —all this without prejudice to Ifyance’a right to postpone the evacuation of the territory in tile event of the Treaty of Versailles being infringed.