THE OTAGO DAILY TIMES SATURDAY, APRIL 27. 1929. GERMAN REPARATIONS.

Otago Daily Times, Issue 20702, 27 April 1929, Page 12

THE OTAGO DAILY TIMES SATURDAY, APRIL 27. 1929. GERMAN REPARATIONS.

Our cable messages do not hold out much hope that an agreement will be arrived at by the committee of experts which, in accordance with a decision of Ihe Allies in September last at Geneva, was set up to consider a final and complete settlement of German reparations. It had always been intended that the Dawes Plan, not being more than a tentative arrangement, should be readjusted on some favourable occasion. The readjustment is not proY’ing so simple a matter as had been anticipated. The memorandum submitted by Dr Schacht, head of the German delegation,' was described in the first instance as “ a bomb-shell,” though the suggestion that it was to be regarded as an ultimatum was firmly contradicted from Berlin. As unofficially represented, the German offer was one under which a sum of £82,500,000 a year would be paid for thirtyseven years by way of final settlement. The Dawes Plan fixed a series of annuities in accordance with which the amount payable by Germany for 1927-28 was £82,500,000,—a figure corresponding to- that at which she is said to be now desirous of fixing, all future payments over the term mentioned. During the current year, however, the amount payable by Germany under the Dawes Plan would be £120,000,000, representing the maximum levy and the standard annuity until the extinction of the whole liability. The difference between this liability and the amount of the reported German offer is, therefore, £37,500,000 per annum. It will be seen that the German proposal amounts to an expression of willingness to meet a total liability of £3,052,500,000. But' in 1921 the a oST£'S a tc of the Allied demand on Gcmany was more than double that amount. What the whole liability is to be has yet, however, to be finally determined. Two points require settlement tho question of the amount which Germany should pay and the question of her ability to pay. It is generally recognised that it is due to her that she should know the “extent of her liability. Tho two questions are, of eoiirse, closely related. To the Allies it is due that Germany should pay them a fixed sum if she is in a position to do so. That ,is the view taken by the Agent-General for Reparations, who in his last report said. No question can fairly arise, in the light of the practical experience thus far, as to the ability of the Budget of the Reich to provide the full amount of. its - standard contributions under the Dawes Plan.” The, German preference at the present time seems to be in the direction of going > on with the payments under the Dawes Plan in the hope of securing a favourable, readjustment, later on, rather than in the direction of accepting what the experts in conference have in mind. That the conference should break down, as seems inevitable, is regrettable, since from all points of view it is important that finality should be reached. ‘