GERMAN REPARATIONS.

Otago Daily Times, Issue 18325, 16 August 1921, Page 4

GERMAN REPARATIONS.

A correspondent this morning desires information respecting the amount which New Zealand is likely to receive as her share of the payments that are to bo made by Germany by way of reparation. The scheme of reparations, as framed by the Allied Commission and as finally accepted without reserve by Germany on May 11 last, is in many respects of a complicated and technical character. But it is possible with very little difficulty to estimate the amount that should be receivable by the dominion out of the payments which Germany lias undertaken to make. The conclusion at which the Reparation Commission arrived was that, after the amounts already received had boon de-

ducted and after the amount of the Belgian debt had been added, a sum of £6,600,000,000 was due from Germany. Of that figure France claimed 72 per cent, and the British Empire 22 per cent. The payment is, Mr Lloyd George explained in the House of Commons, to be provided for the issue of bonds in three categories. The first issue, deliverable by July 1 last, was for £600,000,000 gold, bearing interest at 5 per cent, with a 1 per cent, cumulative sinking fund. The second series will be for 38 milliards of gold marks, or £1,900,000,000 sterling, bearing interest. at the same rate as the first issue. These bonds will be delivered by November 1. The third series will cover the balance of £4,100,000,000, and is also to be delivered by November 1, subject, however, to the condition that the commission is to attach coupons to, and issue, these bonds only as and when it is satisfied that the payments to be made under the agreement are sufficient to provide for the interest and sinking funds. In other words, the date of issue of the third series of bonds will depend upon the capacity of Germany to pay. The Reparation Commission will decide that point from time to time and will issue the bonds accordingly. It will be seen, therefore, that there is a good deal of uncertainty as to the date at which the reparation obligation of Germany will be finally discharged. But to the knowledge of the' amount at which the reparation bill has been fixed has within the last few days been added the knowledge, derived through the report of the Conference of. Prime Ministers, of the allocation of the 22 per cent, of the which is to accrue to the British Empire. The proportion of the reparation payment which will be received by the British Empire will be £1,452,000,000, am}, upon the basis of allocation that has been arranged, this will be distributed in the following shares:; —

Per cent. Amount. United Kingdom. 86.86 £1,261,062^300 Canada .x 4.35 63,162,000 Australia 4.3 S 63,162,000 New Zealand .. .. 1.76 25,410,000 India 1.20 8,712,000 Newfoundland .. 0.10 1,452,000 Minor oolohies .. 0.80 11,616,000

Totals 100.00 £1,452,000,000 How and when instalments of the reparation payment that will come to New Zealand may be expected mSy be somewhat doubtful. A preferential payment to the colonies, our correspondent writes, would be very acceptable. No doubt it would, but the dominions have no right to ask or to suggest that they should be treated preferentially. Nor would there .be any justification for their looking for any <uch thing when they know that the burden of war taxation in Great Britain is much heavier than theirs. •