FRANCE’S SECURITY

New Zealand Times, Volume LI, Issue 11785, 22 March 1924, Page 6

FRANCE’S SECURITY

MACDONALD TRYINC HARD SHAPING SOHEME FOR FINAL SETTLEMENT OF PROBLEM. GOOD PROGRESS MADE. By Telegraph.—Press Assn.—Copyright Australian and N.Z. Cable Association (Received March 21, 7.20 p.m.) LONDON, March 21. The “Daily Telegraph’s” diplomatic correspondent says that a communication from M. Poincare dealing with the problem of France’s security is expected in London at an early date. “Political Observer,” writing in the “Daily Telegraph,” says Mr Ramsay Macdonald has made good progress in connection with the shaping of a scheme for the final settlement of the problem of Anglo-French relations. It will probably soon be known that he places the question of security above that of reparations, and considers the first step is to bring Germany into the League of Nations. The ideal solution is that Britain should then bind herself unequivocally to defend the Covenant, by land, sea. and air against any State which -would begin armed conflict without previous recourse to the League’s peace machinery, but this at present is only an ideal, and is difficult of realisation.

LOAN TO GERMANY FINANCING BY THE POWT'RS. AMERICANS TO HELP. ‘ Australian and N.Z. Cable Association. (Received March 21. 10 p.m.) NEW YORK, March 20. The “New York Tribune” states that 'Wall street, in conjunction with British and Continental financial interests, wili begin arranging the machinery for the distribution of an international loan to Germany early this summer, along lines understood to be suggested by the Dawes Committpe’s report. The Morgan Company is known to be ready at short notice to undertake such commitments, calculated to restore Europe to a normal basis. QUESTION OF SECURITY. The bankers indicate that the loan’s success on the American market would be enhanced considerably by guarantees similar to those attached to the Austrian loan, although these may be omitted if bonds are secured by mortgage on German railroads, and if the -industrial establishments are admims--bered under Allied control. The aggregate amount of the loan s not expected to exceed 250 or .300 nillion dollars, of which not more than 100 millions is likely to be arranged n the United States. Observers aie , lonvinced that both German and ' french approval is assured for such a oan. HOW AUSTRIA WAS HELPED. In October of 1922 the League of Nations worked out a scheme for the financial reconstruction of Austria. Nine European States, of which llri- / tain, France, Italy and Ozecho-Slo-vakia were the chief, guaranteed » loan of £25,000,000 to fill the deficit in the Austrian Budget over two years. About £5,000,000 of this loan was subscribed in the United States. Both the preliminary and the final loans were over-subecriboi.