WAR DEBTS

Otago Daily Times, Issue 18750, 2 January 1923, Page 7

WAR DEBTS

REPARATIONS PROBLEM MR BONAR LAW’S PLAN. BIG REDUCTION FAVOURED. .’i-ess Association—By Telegraph—Copyright LONDON, December 29. The Daily Mail’s political correspondent states that Mr Bonar Law is expected to press at Paris for a reduction of the total reparations to be paid by Germany from £6,600,000,000 to £2.500.000.000, which is the figure suggested by the Bankers’ Committee earlier in the year. The plan will be elastic, and provides among other things for stringent control of the German Customs.—A. and N.Z. Cable. THE SCHEME OUTLINED. LONDON, December 29. The British Cabinet to-day discussed the ne\v reparations reposals which Mr Bonar Law will submit to the Paris Conference. It is understood that the scheme provides a three or four years’ moratorium and a reduction of the total figure to £2,500,000,000, or under certain discounting arrangements to £1,500,000,000. —A. and N.Z. Cable. THE PARIS CONFERENCE. BRITISH PIAN CONDEMNED. PARTS. December 29. Official circles expect that the Reparations Conference will last over a week. They regard Mr Bonar Law’s scheme merely as an attempt to nrevent France taking sanctions. FRENCH EXPERTS’ VIEWS. PARIS, December 30. Mr Bonar Law will accelerate his departure from London by 24 hours, arriving on Sunday, in order to confer with Lord Curzon, who is coming from Lausanne for that purpose. The Petit Parisien states that French experts have considered all possible guarantees that France may demand from Germany in exchange for a fresh moratorium. The French contention is that apart from the particular penalties for defalcations like the failure to deliver timber, the moratorium should he accompanied by important sanctions on the left bank of the Rhine. For example, the Allied officials might collect the coal tax imposed hv Germanv in the Ruhr, which is estimated at 468.000,000 gold marks annually. They might also seize the Customs and foreign securities in the occupied^territory, and also the forests and mines. The proposals will bo submitted to M. Poincare. —A. and N.Z. Cable. AN ECONOMIC CONFERENCE. BORAH RESOLUTION WITHDRAWN. SENATOR’S BITTER SPEECH. WASHINGTON, December 29. Senator Borah announced the withdrawal of his proposal for an economic conference, following on Senator Lodge’s statement that its adoption would be harmful to the Administration’s efforts to secure an adjustment of European affairs. Senator Johnson bitterly and sarcastically attacked Senator Borah, who was once his closest fellow opponent against the Wilsonian policies. Senator Johnson declared that Senator Borah's proposal for an economic conference was in the interests of the international bankers. Ho would rather She the United States in the League of Nations than in such a conference. “I am against a conference, because it will embroil us in Europe”s controversies, and finally make the United States nart of the European system. I am against it with either reservations or amendments, for I am unable to conceive either an amendment or a reservation which would avert possible injurious consequences. I decline to enter Europe s maelstrom without more definite and cogent reasons, upon a mere arrogntion of " superior charity, benevolence, and altruism by those who would take us in.” Senator Johnson continued : “It would he impossible to keep political questions apart from the Economic Conference. Furthermore, the United States, as the nation calling the parley, would have to join in its agreements, and later would have to see that they were operative, rood faith prohibiting anv other course. We must choose either the alternative of arousing false hopes and doing incalculable harm, or of entering a course far removed v/hat is merely fi firn-ncicil one, and which mav ienpardise our future. We have been told that if we do not intervene economically in Europe we shall have to intervene in a war there. I deny it. To sav that without this conference wo shall he involved in some future European war is a hit extravagant. The bait is held before our farmers that thev will prosper if we will hut confer regarding Europe’s reconstruction, hut the farmers are not told that tho onlv reconstruction suggested will involve ns for generations in Europe’s controversies. Aid the farmers? No! Aid the international hankers? Yes, and the farmer will pay for it.—A. and N.Z. Cable. CONFUSION IN THE SENATE. WASHINGTON. December 29. Senator Borah’s withdrawal of his amendment to the Naval Appropriations Bill proposing an economic conference was followed by a seen© of great confusion. Senator Watson stated that the United Slates Government had already put out feelers to the foreign Governments. Senator Borah pressed for details, which Senator Watson could not give. Senator M’Cormick declared that he knew positively conversations had been carried on with a view to an economic conference at Brussels, including the United States. Senator Borah then demanded to know whether his amendment would embarrass President Harding’s efforts. Senator Lodge then announced that the Administration had some time ago entered upon Ambassadorial conversations, hut he did not know what had been accomplished. In his opinion Senator Borah’s proposal was embarrassing, and Senator Borah thereupon withdrew it.—A. and N.Z. Cable. PROBLEMS OF EUROPE. KEY TO A SETTLEMENT. AMERICAN STATESMAN’S VIEWS. NEW YORK, December 29. Mr Hughes (Secretary of State), addressing the American Historical Society at Ncwhaven (Connecticut), suggested that if statesmen cannot agree regarding reparations thev should invite unofficial financial experts from tho respective countries, acting without governmental instructions, to formulate an agreement on the amount of reparations and a plan for payment. Mr Hughes emphasised the point that the Governments need not hind themselves in advance to accept, but they would have the advantage of impartial advice and the enlightenment of public opinion which would aid a political settlement. He declared: “The economic conditions of Europe give us uroat concern. We cannot dispose of these problems by calling them European, for they are world problems, and we cannot escape the injurious consequences by failure to settle them. They arc, however, European problems in tho sense that they cannot be solved without the consent of the European Governments. The kev to a settlement is in their hands, not in ours. It is futile to attempt to erect anv economic structure in Europe until the foundations are laid. The United States is not seeking general reparations. It is only asking for the reimbursement of the costs of the army of occupation.”

Returning to the attempts to link the debts to America ■with reparations, Mr Hughes said; “The matter is plain enough from our standpoint. Germany s capacity to pay is not affected by any indebtedness of any of our Allies to us. That indebtedness does not diminish Germany's capacity, and its removal would not increase her capacity. Moreover, the Allies’ condition and capacity to pay cannot properly be determined until the amount realisable on these credits for reparations has been determined. We have no desire to sec Germany relieved of her responsibility for the war or of her hist obligations to make reparation for the injuries due to her aggression. There is not the slightest desire that France shall loso any ]wyt of her just claims. On the other hand, we do not wish to see a prostrate Germany. There can be no economic recuperation of "Europe unless Germany recuperates We should view with disfavour auv measure which, instead of producing reparations, would threaten disaster.’’ Mr Hughes declared that it was devoutly to be hoped the coming meeting of Prime Ministers in Paris would find a solution, otherwise the alternative _ of forcible measures to obtain reparations was nof. attractive. No one could foretell the extent of the serious consequences which might ensue from such a course. Tn suggesting a Reparations Commission of business men. Mr Hughes stated: “I have no doubt distinguished Americans would be willing to serve on such a commission. Rome of onr people have suggested that the United States should assume the role of arbiter. There is one sufficient answer to this suggestion. We have not been asked to assume the role of arbiter. There can be no such arbitrament unless we are united Tt would be an extraordinary and nnm'ecedonted thine' for ns to ask for an invitation.’’ —A. and N.Z. Cable. GERMANY’S CAPACITY TO PAY. AN INTERNATIONAL CONFERENCE. AMERICA’S SUGGESTION. WASHINGTON, December 29. White Hoppe has confirmed the intimations made in the Senate regarding America’s intended participation in a European settlement by issuing a statement that the Government is negotiating with the European nations to bring about an international conference of financial and economic experts to determine- how much Germany is able to nay. The conference will be held in Europe—probably in Brussels. FORCING THE ISSUE. WASHINGTON, December 30. (Received Jan. 1, at 5-5 p.m.) A high administration official states that Britain and Germany and some of the other nations concerned have informally indicated their willingness to accept the American proposal for an International Commission on Reparations. While Franco has not rejected the proposal, she has withheld expression of her attitude for two months. The American Government made public the proposal in the hope of forcing the issue. Tlic Administration’s plan to assist in the adjustment of the German reparations is most favourably received among the Senators. There is little criticism, and this is mild. There are also indications that the European Powers will receive the American suggestions favourably. is felt that in view of the Senatorial reaction the Senate’s approval of the treaties growing from pourparlers or conferences is likely.—A. and N.Z. Cable. LOAN TO GERMANY. AMERICA’S PROPOSAL. WASHINGTON, December 29. Senator Bnrsnm introduced a resolution in the Senate providing a loan of one billion dollars to Germany, usable for the purchase of American farm products and implements. The loan will he covered bv German industrial securities. —A. and N.Z. Cable. HERR CUNO’S SCHEME. MORTGAGING GERMANY’S WEALTH. BERLIN, December 29. The underlying idea of Herr Cuno’s new reparations scheme is a 20 ner cent, mortgage, Germany’s wealth serving as a guarantee to the international financiers who are prepared to mobilise the German debt. —A. and N.Z Cable. PARIS, December 31. (Received Jan. 1, at 9.5 p.m.) The German Note will not bo presented until Wednesday.—A. and N.Z. Cable. GERMANY’S LATEST OFFER. EXAMINED BY EXPERTS. BERLIN, December 31. (Received Jan. 1, at 5.5 p.m.) Twenty-five financial experts studied the new reparations plan for submission to the Paris Conference. Every big industry was represented. There was some liveliness during the discussion as tn the total offer. The reports vary, hut it is believed that between 20 and 30 milliards of gold marks was suggested, with a two or three years’ moratorium. Herr Stinnes considered that all the figures were too high. After a 14 hours’ discussion the plan was unanimously adopted, and the Government sent a note to M. Poincare asking permission to submit the scheme.—A. and N.Z. Cable.