WAR DEBTS

Otago Daily Times, Issue 18625, 5 August 1922, Page 7

WAR DEBTS

CANCELLATION PROPOSAL, OPPOSITION IN AMERICA. ? SENATORS UNCOMPROMISING. Pres* Assoiiation— By Telegraph—Copyright WASHINGTON, August 3. A Treasury official stated that the British proposal for debt cancellation is regarded with high disfavour in Administration circles. He declared that the British proposal was merely an injection of an unnecessary difficulty in an already complicated situation, and will in no way affect the negotiations which are in progress for funding the Allied debt.—A. and N.Z. Cable. Many Senators commented on the consummate smoothness of the Earl of Balfour’s Note. “We shajl never cancel the debts,” 4aid Mr MOumbpr, chairman of the Senate’s Finance Committee. “Such a measure would never be approved by the American people.” ■ Senator Hitchcock asserted that it would be a long, long time, if ever, before cancellation was agreed to, and then only if the United States decided that it _ was the only way to save a terrible situation. It is pointed out that Congress tied the President’s hands against signing any agreement looking to cancellation of the enactment creating the Debt Funding Commission, which provided that every dollar must be repaid.—Reuter. THE LONDON CONFERENCE. FRANCE'S PROGRAMME. PARIS, Angust 3. The Petit Parisian saysJ “The French programme at the LondonpConference is divided into two sections—mmly, a_ definite settlement of the German debt, linked with an eventual settlement of the interAllied debts; secondly, steps to control German finance.” The Petit Parisian adds: “France will announce her readiness to ask Germany for reparation for material damages only. France is orepared to forfeit 12 billion francs in gold which the Allies owe her, on condition that England and America do not claim the money lent to France during the war. The French plan for the control of the German finances consists of monetary reform, control of the Customs, and a levy on German capital.”—A. and N.Z. Cable.

• STATEMENT IN THE COMMONS,

PRIME MINISTER DEMANDS A FREE HAND.

LONDON, August 3. Mr Lloyd George, speaking in the House of Commons regarding reparations, welcomed M. Poincare’s decision to bring a definite French offer to Monday’s conference. Mr Lloyd George demanded a free hand in consideration of this announcement. He emphasised the danger of driving Germany too far, but at the same time he strongly resisted the idea of reducing Germany’s payment at Britain's sole expense. Britain could not afford to see fair play for everyone except her own people.—A. and N.Z. Cable. GEE MAN REPARATIONS. QUESTION OF DEFAULT. CONSIDERATION DEFERRED.' PARIS, August 3. Despite M. Poincare's threat, the Reparations Commission decided to postpone until after the London Conference consideration of the question of whether Germany had defaulted in the payment which was due on August 15. —A. and N.Z. Cable. FRANCE’S THREAT. A . GERMANY’S CONTENTION; BERLIN, August 3 ! The Government is drafting a reply to M. Poincare’s Note, contending that the threatened sanctions are illlegaJ, as they cannot know before August 15 whether Germany has really defaulted.—Reuter. M. POINCARE’S PROPOSALS. CONCESSIONS TO GERMANY. LONDON, August 3. (Received August 4, at 7.45 p.m.) The Daily Express declares that M. Poincare on Monday will offer to accept a reduction of the Germain reparations from £6,750,000,000 to £2,500,000,000, and will cancel £480,000,000 of debts owed to France by the smaller Allies, provided that France’s own debts, amounting to £1,174,000,000 one to the Allies, are cancelled and that she receives 89 per cent, of the reduced reparations. This means that France would receive £1,200,000,000 less from Germany and would' gain £694,000,000 by the debt cancellation, and that Britain would lose £1,450,000,000 from Germany and £584,000,000 \by the debt cancellation. The Daily Chronicle’s Paris correspondent states that neither the Earl of Balfour’s Note nor M. Poincare’s ultimatum will he permitted to interfere with Monday’s conference. M. Poincare is bringing his own reparation plan, which probably will be less exacting than anything previously suggested. M. Poincare probably will offer important concessions to Germany provided he receives full assurances on the questions of control and guarantees. If accord is reached on these points, international bankers will probably bo asked to reconsider the question of an international loan to Germany. Official circles are most reticent regarding the nature of the measures M. Poincare is pledged to enforce oh Saturday in the event of Germany’s non-com-pliance with his ultimatum, but it is practically certain that they include the expropriation of important German industries in the occupied Rhine region and the establishment of stout Customs barriers for the Ruhr and Rhine nrovinces. The Morning Post’s Berlin correspondent states that the Earl of Balfour’s Note attracted little attention. The Yossische Zeitnng alone published the full text, and comments: “The idea of the cancellation of international debts is the only possible solution of the present crisis. It has hitherto been kept in the background because America short-sightedly refused to assist_ Europe. It will be to Americas own interest to help Europe because it is economically impossible for a single nation simultaneously to be the greatest creditor and the greatest exporting State, ” Der Tag regards the Note as cleverly linking the inter-Alliod indebtedness with German reparations, and proceeds: "For Germany the, concluding portion of the Note is naturally the most important, as it opposes the violent French demands and foreshadows England’s diplomatic support to Germany in the present controversy with France. We believe that combined action by America and England' is imminent.”