WAR DEBTS

Otago Daily Times, Issue 18751, 3 January 1923, Page 5

WAR DEBTS

REPARATIONS PROBLEM. THE ROAD TO PEACE. HERR CUNO’S VIEWS. Press Association —By Telegraph—Copyright ' BERLIN, December 51. Herr Cuno, in addressing business men at Hamburg, said; “Real peace wi'l be secured only when all peoples range themselves on a platform of reality. Did anyone believe that Germany was committing suicide simply to cheat her creditors? Germain - already had accomplished much. An international loan should be the basis of all future discussions. A reparations loan could be floated only after the fixation of Germany’s capacity to pay. Germany, therefore, had decided to name a fixed sum a* the basis of a loan. Amortisation and the first year's interest would be paid from, the loan. Such an arrangement would help the recovery of Enronean trade and would particularly benefit French and German industries. The goal of all endeavours must be the liberty of the German people, who would be urged to make greater sacrifices than ever. Herr Guno continued ; Definite guarantees would lie given in return for a loan. These would have to be negotiated in Germany. He claimed eoual political and economic rights, and also reiterated the demand for the withdrawal of the Armv of Declination, which was a hindrance to trade. Duisberg, Rnhrort. and Dusseldnrf must be evacuated. The final solution could only be reached if there was an end. once and for all. to force and throats of force. Bv open negotiations and frank discussion between man and man a solution could be found. As a nroof of Germany’s desire for peace, Herr Guno said that Germany through a third Power had recently proposed to make a pledge with France and the other Powers interested in the Rhine not to declare war for a veneration without first faking a plebiscite, but France r l "o|in C d the proposal.—A. and N.Z. Gable. THE PARIS CONFERENCE. FRANCE’S ATTITUDE. PARTS, January 1. The Petit Parisien declares that France will maintain the attitude taken up bv her at the London Conference, and will reiect a reduction of the German debt unless compensation is provided, though she suggests a reduction by means of assignments of credit, if that plan is considered impracticable. France will express her willingness to rwiv interest on her debts provided that she receives from Oermanv the sums necessary for the reconstruction of the liberated regions, which represent almost precisely what France should receive on the first 50 milliards. France will also propose a moratorium for two rccars, which mmt not be extended to the payments for the armies of occupation or for payments in kind, and it may even exclude some payments in specie. As an off-set against a moratorium Franco will demand strict measures of control for the reorganisation of the German finances, and will certainly demand guarantees, including the exploitation of forests in the occupied areas, in order to assure deliveries of wood required bv the Reparations Commission. The(marantees that France will demand also include the supervision of the deliveries of coal in the Ruhr province destined for reparations, the collection of a certain proportion of foreign bills provided bv German exports from the R'mnish territories apd the Ruhr, and the collection of Customs revenue in the occooied regions and the Ruhr. The sums thus collected would be retained during ♦he moratorium onlv in such a measure as ne rrna nv failed to fulfil her engagements. Tbps Germany would not he deprived of important resources when being asked to V'-store ber finances. France also pronoses that definite guarantees should he effected for an international loan to he controlled bv a committee of guarantors, to which wculd be added representatives of the subscribers. With reference to Herr Guno’s statement that proposals have been submitted to France to assure the security of her frontiers, it is authoritatively stated in Paris that the Government was merely advised from Washington that the German Ambassador had conferred with the American Secretary of State on the subject. But the suggestions were regarded as wild talk, as they did not carry new or serious guarantees. The official French view is that as the Versailles Treaty has not lapsed the German proposals do not make a useful or definite contribution to a solution of the question. The Matin expresses the opinion that the Reparations Commission’s Conference constitutes a most important episode, hut it is impossible to imagine that a policy will be clearly, mafked out. Whether an agreement is reached or not, the French plans for seizure of guarantees from Germany are complete in all details. —A. and N.Z. Cable. OPTIMISM IN AMERICA. SUCCESS OF CONFERENCE ANTICIPATED. FRANCE THE ONLY OBSTACLE. NEW YORK, January 1. (Received Jan. 2, at 7.25 p.m.) ‘The New York Times Washington correspondent states that the opinion in Congressional quarters is that the. Paris Conference will not reach conclusions speedily, but its ultimate success is felt tp be assured. It is believed that an understanding will be reached on the basis of the American suggestion for an, adjustment of the reparations problem by means of a fact-finding international bankers’ commission. England’s attitude is considered to be very encouraging here, and it is believed that Italy and Belgium will also back the American viewpoint. France is the only obstacle, but- it) is thought that M. Poincare has mellowed, and will /ultimately come around.—A. and N.Z. Cable. BRITAIN’S POLICY. THE CABINET UNITED. , DISAPPOINTMENT IN FRANCE. PARIS, January 1. Air Bonar Law conferred with Lord Curzon for several hours. It is understood that Mr Bonar Law completely approved of Lord CurzonV attitude at Lausanne. The British Cabinet is absolutely united regarding the reparations. French circles are disappointed over this, some quarters having considered that Lord Curzon had come specially to nersuade Mr Bonar Law to yield to M. Poincare in the matter of pledges. It is believed that France is determined to take sanctions alone if she cannot obtain satisfaction otherwise. —A. and N.Z. Cable. MILITARY OCCUPATION OF THE RUHR. OPPOSED BY MARSHAL FOCH. PARTS, January 2. /Received Jan. 2. at 8.20 p.m.i Le Matin says that the influence of Marshal Foch has been exercised against the military occupation of the Ruhr except as a last resort.—A. and N.Z. Cable.

EUROPE’S FINANCES. question of debt funding. MR NORMAN’S MISSION. NEW YORK, January 2. (Received Jan. 2, at 8.20 p.m.) The New York Times Washington correspondent confirms the report that Mr Norman, Governor of the Bank of England was in the United States last April and ’discussed with President Harding and other United States officials .and private financiers, including Mr Montagu Morgan, the question of debt funding, and the financial situation of Europe. It w understood that he urged the United States to interest itself in the affairs of F-mrope, fearing that the situnt’on would become increasingly dangerous from the financial viewpoint unless something were done quickly. Mr Norman was anxious that the United States should use her good offices cither by calling a conference or suggesting some course which would unravel the tangle. Unusual interest is being shown in Mr Norman’s visit, the facts of which have hegn kept secret until now, he having travelled incognito.—A. and N.Z. Cable.