REPARATIONS.

Otago Daily Times, Issue 18999, 23 October 1923, Page 9

REPARATIONS.

CHAOS IN GERMANY. GOVERNMENT THREATENED. SAXON AND BAVARIAN STORM CENTRES. RHINELAND REPUBLIC PROCLAIMED. Association—By To'.cgmph—Oopyrlgu* BERLIN, October 21.

Internally and externally Dr Slresomann’s Government is between the devil and the deep sea. On the one hand Saxony is threatening open revolt unless Bavaria is brought to heel. Bavaria, which is already practically independent, is threatening similarly on tho other hand. M. Poincare's brusque negatives to all the German suggestions of a Ruhr solution have been a heavy blow to the Government and have caused oven the Radicals to despair of tho possibility of an agreement with Franco “Woe to the tyrant France. The curses of a starving people be upon her head,'' says Dr Stresemann’s organ, which laments that Britain has forgotten her international obligations. The Bavarian general, bon Lossow, whom Dr Geeslcr (Minister of Defence) in September appointed military commissioner in Bavaria to circumvent Dr von Kahr’s dictatorship, has now refused to execute Dr Gossler’s order to seize the offices of tho newspaper Yoelkischer Becbaohtor. Simultaneously he telegraphed to Generalissimo vpn Seckt that he refused to obey an order which would bring him into conflict with tho Bavarian Government. Marshal von Seckt replied that General von Lossow no longer enjoyed his confidence. This General von Lossow ignored, whereupon Dr Gessler went to Augsburg and instructed the Bavarian General von Kressenstoin to proceed to Munich to induce General von Lossow to resign. General von Lossow refused, but General von Kressonstein re signed.

The Bavarian Government has now informed Berlin that it refuses to continue further official relations with. Dr Gessler.— A. and N.Z. Cable. BAVARIAN DEFIANCE. THE GOVERNMENT EMBARRASSED. BERLIN, October 21. A communique announces the dismissal of General von Lossow and the provisional substitution of General von Krossenstein to Whom President Ebert has requested the Bavarian Government to make proposals regarding the appointment of a commander of the Reichswehr in Bavaria. A later message states that the Bavarian Government has issued a proclamation stating that in the interests of public peace pending a restoration of normal relations with the Imperial Government General von Lossow has been reinstated as commandant of the Bavarian Reichswehr.

A semi-official communication says that the Bavarian Government’s latest measure in reference to the appointment of General von Lossow represents an open breach of the constitution of the empire and declares that this action by a responsible German Provincial Government renders it difficult for the Reich to concentrate its strength m opposing the destructive influences from outside.—Reuter.

OPPOSITE VIEWPOINTS. SAME IDEAL CLAIMED. LONDON, October 20. (Received Oct. 22, at 7.40 p.m.) Despite grave difficulties, both the Reich and the Bavarian Governments claim that they are actuated by tho same desire—namely, the strengthening of Germany. Simultaneously, each accuses the other side of disruptive influences. At Munich, Dr von Kahr mado a statement to pressmen. He insisted that Bavaria had rejected all idea of separation. Its action was partly directed against the policy of the Reich Government, not against the Reich. He declared that its attitude was dictated by opposition to internationalism and Marxism.

BERLIN, October 21. An Imperial' Government manifesto describes Dr von Kahr’s claim as a wilful misrepresentation. Generalissimo von Seckt, in an order to the Reichswehr, warns the Seventh Bavarian Division to remain loyal to its oath to the Reich and unconditionally to obey the highest military commander.—Reuter.

BAVARIA’S STRONG POSITION. A SELF-CONTAINED STATE. LONDON, October 21. (Received Oct. 22, at 9.10 p.m.) The Times’s Munich correspondent, says: “If Dr Gcsslar attempts to enforce his policy against Bavaria with the assistance of the military it is doubtful if ho could find a single division in the whole of Germany prepared to obey his orders. Bavaria could put into the field 150.000 troo-s. Even the members of the Reichswehr, who are Bavarian born and bred, regard their firstduty to Bavaria and not to Germany, and .hey would obey the Central Government only against foreign aggression. Dr Gessler might employ financial compulsion, but Bavaria is strong in gold reserve and is comparatively prosperous. The State is able to carry on the public services unaided. Railway and postal isolation may be employed, but Bavaria has already arranged for this. As regards foodstuffs she is selfsupporting. It is considered that if the Berlin Government attempts isolation it would result in giving Bavaria control of her own army, railwavs, and public services, which has been throughout Dr von Kahr’s ulterior aim.—The Times.

THE SITUATION SERIOUS. BERLIN ATTEMPTS MEDIATION. BERLIN, October 22. (Received Oot 22, at 10.10 p.m.) The latest te!cgr*ams from Bavaria are very serious. They say that Dr von Kahr is determined to insist on tho resignation of the entire Stresemann Cabinet, and if a peaceful settlement is impossible be is ready to force a decision.

Tho Berlin press unanimously agrees that Bavaria is in open rebellion, and it points out that Bavaria has its own army, which is ready to obey Dr von Kahr and General von Loss’ow. Bavaria insists that she does not want separation from the Reich, but the restoration of the German Federation on Bismarckian lines, as this is tho only way in which Germany can find the way back to power. Tho Stresemann Cabinet has decided to attempt mediation through the Federal Council.—A. and N. Z. Cable.

FRENCH VIEW OF EVENTS. PARIS, October 21. (Received Oct. 22, at 5.5 p.m.) The Echo do Paris’s Berlin correspondent states that Bavaria’s retention of General von Lossow is the first step in the. restoration of the Monarchy. The proposal is that Bavaria should forthwith proclaim the nullity of the Versailles Treaty and so compel the Allies to begin reprisals.—A. and N.Z. Cable.

CONDITIONS IN SAXONY. THE TROUBLE ACCENTUATED. BERLIN. October 19. Remarkable scenes occurred in the Saxon Diet, where tho Premier, Dr Zeigner, in a ppeech declared that it was a fact that tho Reich bad an illegal army, and that the.ro were many of these illegal organisations in tho neighbourhood of Berlin. They would have attempted a rising at the* beginning of October, but were prevented by the Prussian police. They had been training from four to six weeks this summer at Koenigsbrnck. Hundreds of thousands of their members were lately enrolled in the Reicbswohr, and were armed. The Entente knew these things, and would nut an end to them. * A member of the People’s Party retorted accusing Dr Zeigner of open treachery. A tumult among the Communists followed. whereupon the Nationalists walked from the House. •, Tho differences between the'lmperial and Saxon Governments, which have been exaggerated by tho peremptory decrees of

General Mueller (commander of the Reich - swehr in Saxony) have now extended to a quarrel between Saxony and Bavaria. The former has announced the intention ot changing its Charges d’Affairs at Munich. The Bavarian Government has refused to recognise tho successor so long as a Communists are included in the Saxon Cabinet. Bavaria has also recalled its Minister from Dresden.—Reuter. RESTORATION OF ORDER. STEEN MILITARY DECREE. BERLIN, October 21. General Mueller has notified the Saxon Premier that he has instructed the use of the troops at his disposal to restore order in Saxony. Ho hopes to receive the support of tho Saxon Government. In that connection General Mueller has issued a proclamation of his intention to put down terrorism, threatening the death penalty to anyone who forcibly opposes his measures. ■—Reuter. RHENISH REPUBLIC. PROCLAMATION ON SUNDAY A NEW LEADER APPEARS. PARIS, October 21. A Rhenish Republic was proclaimed at 4 o'clock on Sunday morning. At Aix-Ia-Chapelle all the public buildings were occupied by Separatists and the 'Rhenish flag was hoisted on the Town Hall. The German police offered no resistance. The Republicans have issued a proclamation forbidding resistance. (Received Oct, 22, at 5.5 p.m.) Advices indicate that Herr Decker, an Aix-la-Chapelle merchant and a. well-known Separatist, is the leader of the new Republic. Herr Decker does not belong to either the Dorten or Smeoto groups of Separatists. It is stated that the Rhineland troops will now march north through tho Belgian zone, and afterwards towards the British zone. —A. and N.Z. Cable and ReuterBRUSSELS, October 21. (Received Oct. 22, at 5.5 p.m.) The Cabinet has been hastily summoned to consider the Rhineland Republic. A meeting of the inter-Allied authorities has also assembled at Coblentz for tho same pui'pose. —A. and N.Z. Cable. THE RHINELAND COUP. OPINION IN GERMANY. FRENCH AND BELGIAN VIEWS. BERLIN, October 21. (Received Oct. 22, at 9.10 p.m.) The proclamation of the Rheinish Republic at Aix-la-Chapello is not taken very tragically in official quarters here, where it is regarded as a purely local outburst and not likely to spread to other parts of tho occupied territory. It is reported that the ormod Separatists who carried out tho coup numbered some 2000.—Reuter. PARIS, October 21.

The French official attitude towards the coup is one of cautious reserve. It is not yet clear whether Merchant Decker, who is head of the movement in Aix-la-Chapelle, is acting in accord with the principal Separatist leaders. It is the opinion here that if a uniTy of view prevails among tho Separatist leaders, the movement may well spread to the whole of the Rhineland. In the present state of high tension it is officially declared that the French will not intervene unless they are required to protect the lives and property of the Allied nationals or nationals working for the Allies. LONDON, October 21. Tho Paris correspondent of The Times says that Germany’s dislocations have begun. France now cannot escape tho responsibility for the maintenance of order in the Rhineland and the Ruhr. The proclamation of the Republic at Aix-la-Chap-elle. is overshadowing the revolt of Bavaria against Berlin, and oven tho question of reparations has been put in the background by events with which tho diplomats cannot keep pace. It remains to be seen what will be the outcome of the Rhineland movement. It is already being asked what will bo the result if the Rhineland Republic is recognised by some of the occupying Powers and not recognised by Britain. It is emphasised that a proclamation made in tho Belgian zone at the same time pointed out that Belgium did not favour the Rhineland agitators. France desires to regard the movement as a spontaneous local .demonstration. but it is certainly not displeasing to many Frenchmen.

Tho Morning Post’s Paris correspondent says: “France is determined that Germany shall not bo given the slightest ground for claiming that a new Alsace and Lorraine has been created on the Western frontier, so Franco is desirous that the Rhineland movement must bo due to the spontaneous wish of the inhabitants concerned.—Reuter.

BRUSSELS, October 21. It is stated that the Government has instructed tho Belgian military authorities to observe tho strictest neutrality regarding the Soxiavatist coup, intertering only m case of disorder and for the protection ot life. The proclamation of the Rhineland Republic caused no surprise. It remains to bo seen 'whether the Rhinelanders sincerely wish to constitute the desired barrier between Prussia and Belgium and Franec, or if their action is dictated by a desire to escape their obligations under the Treaty of Versailles. —Reuter. FRANCE AND GERMANY. RUPTUREOF NEGOTIATIONS A SERIOUS OUTLOOK, LONDON, October 21. The Daily Chronicle’s Berlin correspondent says that M. Poincare’s editing of tho German communique relating to the conversations between him and tho German Charge' d’Atfairs is ( regarded hero as an effort to explain away what really happened. M. Poincare in one breath insists on the restoration of the conditions in the Ruhr to those existing prior to the occupation, and in the next warns the Reich not to interfere with French authorities there. Tho whole French attitude is regarded as so outrageous that tho Cabinet has concluded that attempts at negotiation with Paris and Brussels are useless. The Reparations Commission may be approached, but it is felt doubtful whether anything can be achieved. The mark, which continues its catastrophic full, has reached 54,000 million to the pound. A loaf of bread costs 620 millions of marks to-day, and to-morrow it will cost ICOO millions. All prices are advancing proportionally. It is reported that the Stock Exchange intends to refuse to deal in anything on a paper mark basis. Probably the trouble will lead to the Stock Exchange closing. BERLIN, October 21. France has broken off negotiations with tho Ruhr magnates. Dr Stvessemann rcgaids this as the end of all efforts to secure a settlement, and has instructed the Gorman representatives abroad to inform the Governments that Germany holds Franco responsible for tho lives of the people in the occupied territory. A. and N.Z. Cable.

FRANCE STILL MISTRUSTFUL. LONDON, October 19. Tho Paris correspondent of The Times says that M. Poincare will not be imposed upon by new definitions which, it seems, will long postpone real negotiations. There have been many attempts to state precisely when M. Poincare will consider passsive resistance ended, but it has never been so clearly demonstrated that France will not listen to Germany til! tho Ruhr is working normally and the deliveries attain their pre-occupation volume. That will be tho test; but, as considerable deliveries from the Ruhr are impossible unless Britain is prepared to finance them, Germany presumably will fall more and more into confusion while France remains impassive. The French think 'that Berlin is wilfully placing obstacles in tho way of economic restoration in the Ruhr. It is considered that Dr Stresemann is alarmed at the possibility of his supersession by tho industrialists; therefore he is endeavouring to force M. Poincare lo resume direct negotiations between the two Governments. This amounts to political blackmail, say tho French, who are c onviuccd that M. Poincare will persevere, in regard to resistance. —Tho Times.

FRENCH SOCIALISTS. A PLEA FOR REASONABLENESS. PARIS. October 20. The Socialist loader (M. Herriol), addressing the Radical Socialist Congress on France’s foreign policy, recommended the maintenance of an attitude of prudence. Ho declared that they wore not going to condemn the occupation of the Ruhr at the moment is was ending. If they protested against the occupation German capitalism would urge the Chancellor to delay, as there was a party in Franco demanding the submission of the matter to the League of Nations which was unthinkable. The ex-Minister (Mr Franklin Bouillon), who came into special prominence during the Lausanne negotiations with Turkey, declared that it would bo madness to submit the reparations question to the League. PARIS, October 21. The Radical Socialist Party, which, notwithstanding its lack of homogeneity, constitutes the main opposition to the Government, concluded its annual congress with a programme aiming at uniting all sections. The programme steers a course between the Communists and the Government, and supports the League of Nations, the .maintenance of friendship with the Allies, a reapproachment with Russia, and the helping of German democracy, provided the latter helps the Allies to obtain reparations. The party also expresses its lukewarmness towards the Ruhr occupation, but deprecates any act which German capitalism may construe ns anti-French. Nevertheless, it threatens to intervene if the Government rejects any reasonable German proposals.—A. and N.Z. Cable and Reuter. THE RUHR SITUATION. GOVERNMENT SENDING TROOPS. BERLIN, October 21. The Cabinet is proposing to send several battalions of the Reichswehr to preserve order in the Ruhr. The magnates are endeavouring to insure sufficient work to provide a minimum existence for the population, but heavy dismissals are inevitable. It is estimated that Krupps'’ dismissals will aggregate 30,000 men. —A. and N.Z, Cable. RIOTS IN DUSSELDORF. LONDON, October 19. According to the London correspondent of The limes, Dusseldorf bears evidence of severe rioting during the last few days. The main road from Cologne to Dusseldorf looks as if it had passed through a violent storm. Even to-day, when quiet reigns, the shops are doing business behind closed shutters and drawn blinds. “It is not Communism wc fear —we are too poor to make revolution — it is anarchy arising from amidst a starving population,” declares a German politician. —Tire Times. MR LLOYD GEORGE’S VIEW. NEW YORK, October 20. (Received October 21, at 5.5 p.m.) Speaking at St. Louis, Mr Lloyd George declared: “ Unless the German situation is settled unthinkable havoc may result to all the world. The reparation question should be settled on the basis of Gorman’s real capacity to pay.”—A. and N.Z. Cable.

CURRENCY RAIDS. FOREIGNERS VICTIMISED. LONDON, October 19. The Berlin correspondent of The Times says: “The raids for the purpose of obtaining foreign exchange currency organised by Dr Fellinger, the foreign exchange dictator, arc giving an opportunity to swindlers, who are reaping a rich harvest from unsuspecting foreigners. Their methods are to stop people in the street and demand to see their note cases. Any foreign moneys are confiscated, and the owner is given a receipt and told to report in the morning at the police station. There he. generally learns that he has been victimised.”—The Times.