RECONSTRUCTING EUROPE.

Oamaru Mail, Volume XLIV, Issue 14007, 11 March 1920, Page 6

RECONSTRUCTING EUROPE.

* MUST FRANCE OR GERMANY _ SUFFER? [Bt Eiwmuc Tej-ecmapu—Copvuight.J l Per Pna» Association.) tAus. and N.Z. Cable Assn.) Received March 10, at 7.35 p.m. PARIS, March 8. M. Tardien, one of the French delegates at the Peace Conference, in an article in the Petit Parisien, declares that the London Economic Memorandum is equivalent to a rejection of the Versailles Treaty, to the detriment of France. The Berlin correspondent of Le Journal stattw that the German Government has drawn up an Economic Memorandum for submission to the Pe.i-.-e Conference, showing that in order to obtain food supplies, Germany needs a loan of 42 milliards of marks in gold. The Memorandum also asks for the modification of the Rhine occupancy, and finallv declares that if the terms are not accepted, Germany will declare ber bankruptcy next autumn.

Received March 10, at 10.25 p.m. LONDON. March 8. The newspapers contain a forecast of the Supreme Council's Economic .Memorandum. The main lines are in accord with the earlier forecast. Jhe keynote of the manifesto is said to re the necessity of restoring Germany and Russia economically. Until that is done, the effective recovery of Europe is generally regarded as impossible. Russia's fi'rst requisite is peace, and the second is reorganisation. Tno Transport Council urges that the State? bordering on Russia should accept ant reasonable terms. This would ena'de the resumption of trade and the importation into Russia of the necessary rrnlwav material, to which the Soviet Government attaches the greatest importance. The Council considers that Germany s principal need is a precise statement of her obligations under the Peace Treaty? reparation clause. "It is not proposed to revise the Treaty in this regard, a« wide powers are already vested in the Reparations Commission. The Council therefore urges the Commission to proceed without delay in fixing the amount Germany must pay. To enable this to be done. Germany wijl be requested to furnish her own estimate, as arranged before the Treaty was signed. The proposal for allowing Germany to raise an external loan presents the greatest difficulties. It is lelieved that Germany's economic restoration depends on a" substantial foreign loan, which i.s. however, unlikely to be forthcoming, if repayment must- wait until the indemnity is wiped off. On the other hand. France urgently needs the payment of the indemnity, in order to restore the ravaees the war wrought noon her industries. Therefore the Council suggests that the repayment of the should take precedence, and the indemnity payment will be sitW'-t t- a certain safeguard. It is likely that modifications will be made, based on the French representations. whi"h have now been presented to the Council.

The Memorandum al=o emnhasi=es the necessity tor strictly limiting the ••♦:- nenditnre on armies and navies for friendly international relations, and Go-vf-nmental economy. Mcwes from P.°ris state that the French Ambassador «'n London has been instructed to say that France ><= willin™- to si<ni the Memorandum with the frllowing reservations- (1) France dc-dlno-i to nress that *he Horder States shall make pence wih'i Russia: f2) reparations under the P-ar-e Treaty must tal-e precedence over loan repayments. An official romm»ni«e from Paris "•w» that the French Government's o»>"ectiens to *he Memorandum are mainly Wised on the *-iew" thit the Peace Treaty must be rigidly performed. France refuses to accent a revision of the or a diminution of the of the Reparations Commission. Netrot.ations on these points are in nrocress. The Pari* correspondent of the Daily Tele"mnh savs that French feeling is ••tin-erf by the rep.-.rts re~ardine the Coitnrik' Memorandum. The French prople cannot forget, even if thev wished, what d>maee the invaded areas Inve suffered, and eannot tolerate the proposition that Germany's economic ct'swts shonM lie replaced on the same f.oting as those of France, which are «o largely the result of the Germ.an in-

va«-on. „, The Daily Telerraph says- "There is extreme nervousness in France lest F-inee mav. af»i-r all. be cheated out of her due. France considers that tN? other Allies have rwfisc-d their aims, including Or».at Britain, which sees the German Navy.-maritime commerce and colonies destroyed. France aW is in danger of "ettin" little save her burdens. Even Alsace T -rr-ir.e is not an acquisition, but merely the restoration of stolen property.