FRANCE'S REPARATION CLAIM.

Oamaru Mail, Volume XLIX, Issue 13907, 7 November 1919, Page 4

FRANCE'S REPARATION CLAIM.

(P»v Laurence Hills.) The estimates of the French Government of the reparation that Germany will be able to pay in thirtysix years far exceed those of any other nation. This fact was brought out sharply in the two days' debate in the Chamber of Deputies on the financial clauses of the Peace Treaty. It was revealed also that the French still are clinging tn the idea, that the League of Nations is going to their rescue financially in some way or other, either by the scheme for international bonds or the plan to pool financial resources, although some of the American experts, like Thomas W. Lamont, when he- was in Paris, have taken plans to remove this illusion.

The remarkable feature of the financial debate in the light- of wh.it happened in the Reparation Committee is the assertion of M. Klotz, the Finance Minister, that France would receive in round figures 463,000,000.000 francs. Adding interest years, counting interest (about' £lB,600.00O.000). This contrasts /with the figure of £6,000,000,000. the sum which the British, Italian and America!),; financial members of the Commission 'decided that Germany could pay in nil, or one-third of the amount that M. Klitz told the Chamber that Franco _a,.lone would get. When the American and British experts wanted the total of reparations fixed in the Peace Treaty as essential in a..speedy readjustment of the world credit, Premier Clemeneeau refused his assent and the discussion showed that the French authorities feared that, the sum the experts named would prove so disappointing to the French public that the Government might be overthrown. The prediction made then by the Americans that, in the treaty the French Government would hold out for an absurd sum seems now to be borne out.

* Hero is wh.it M. Klotz expects from Germany:—For the cost of the French occupation of the Rhine. !•">,- 0000,000.000 francs: for pensions, 60.000,000,000, in addition to 2,000.000,000 for the support of widows : for damages caused in other wars, i: M. 000.01)0,000 : total. 20!!,000.000,000 francs. Adding interest on the unpaid instalments in thirtysix rears. My Klotz said this would make a total of -l-G.T.000.000.000 francs. He declared it was not in the interest of France to fix the amount in the treaty. ,M. Klotz did. not disclose how lie reached these figures, which, from the remarks heard, plainly astonish■ed mam* members of the Chamber of Deputies, a.s well as -the Americans that- were in Paris. Germany's capacity (o pay. he held, would result from the excess of its production over consumption, which was at "least 10,000.000.000 marks before the war (.£500,000,000). and because of the rise in prices could be estimated now to be at least 20,000,000,000 marks. Even this amount,"M. Klotz thought, would be surpassed. The weak point in the Government's defence, as was predicted bv the experts, appeared when the Government was plied with questions as to how, under the treaty reparation plan, any intelligent budget could be framed for France in the first years after the war- facing a- budget requirement of 20,000,000,000' francs in addition to 20,000,000,000 francs more.in advances to the devastated regions.

■ It was in this connection that M\ Jvlotjr and other speakers brought up the financial, section of fhe League of Nations. Asked pointedly if there had been any agreement on the question of dividing proportionately anion;* the Allies the cost of _the war, the pooling- scheme about which the French are talking continually, M. Klotz was compelled to answer that "that question, unfortunately, has not been settled yet." 'Explaining the financial section of the league, to which, he-—insisted, the other nations had agreed, he said: "The financial section will supervise all financial matters between the nations, will pass upon .conflicting claims, upon, delays of reparation and measures of coercion and will facilitate pa.vrnents hetweon creditor and debtor Pontes. It jn'ill hold the

evidence id' such ' indebtedness- between nations and will make advances in Stales by means nf bonds whose mat urines shall not oxc/ed i«n years ami which will lie 'j-uarantocd '!, V j- II ,1,,. UI'.'II.IUM- ul' ill-' li-11-M.-."