VERSAILLES TREATY

Otago Daily Times, Issue 21688, 5 July 1932, Page 7

VERSAILLES TREATY

REFERENCES TO WAR GUILT GERMANY SEEKS DELETION (United Press Association.) (By Electric Telegraph—Copyright.) LAUSANNE, July 3. Disregarding his Sabbatarian principles and doctors’ advice, Mr Ramsay MacDonald spent Sunday in vigorous attempts to secure a settlement. It is believed that the German objections to the Five-Power plan have been narrowed to three points: — (1) The amount of payment. (2) The conditions concerning the issue of bonds. (3) Tho camouflaged safeguarding clause. Germany also wants cancellation of the references to war guilt in the Versailles Treaty, arguing that now that reparations are dead it is unreasonable to maintain the stigma,, the removal of which would make a settlement almost palatable. The German demands are expected to arouse opposition, but they will possibly bo advanced for bargaining purposes. The Powers are now discussing the German reply. FUND FOR RECONSTRUCTION. LAUSANNE, July 3. Italy, Belgium, and Japan have accepted the Anglo-French agreement on the terms to be submitted to Germany for the final reparations settlement. Herr Von Papen’s reply is expected to-day. It is proposed that the final payment of £200,000,000 be earmarked, not as reparations, but as contributions to a common fund for European reconstruction. While Germany is expected to protest that that figure is too high, it is believed that she will ultimately accept it, as the alternative would be a breakdown of the conference without agreement, whereupon the suspended reparations payments would become immediately due. . MORE HOPEFUL ATMOSPHERE. (British Official Wireless.) • * , RUGBY, July 3. (Received July 4, at 5.5 p.m.) A more hopeful atmosphere is reported from Lausanne, and apparently a very strong desire for a settlement has reasserted itself in all quarters. The newspapers state that a full meeting of the German Cabinet will take place at Freiberg, near Basle, to-morrow, and it is assumed that the Chancellor (Herr Von Papen) will examine with his colleagues a plan which is being evolved in the discussions which are proceeding inside and outside the conference bureau for' an eventual bond issue for “ economic reconstruction.” Although the bureau discussions on the bond issue scheme have been conducted between delegates and experts of five of the principal creditor Powers there have also been talks outside the conference room in which the German delegates have participated, and. their views upon the various points under examination have, it is safe to assume, been known and taken into full consideration. All the members of the British delegation have participated very actively in the efforts to pull round the conference into the way of success. NO SETTLEMENT YET. ■ LAUSANNE, July 4. (Received July 4, at 10 p.m.) Intensive negotiations during the weekend failed to yield a settlement. Germany is now considering £200,000,000 as the final sum of payment by means of Government bonds, of which redemption is spread over a number of years, but only begins when Germany’s economic position permits. She will then pay £22,500,000 per annum until the amount is cleared. Pending redemption of the bonds, Germany will be asked to deposit industrial railway bonds bearing interest in the Bank of International Settlements, the value of these being £210,000,000. The French experts are now considering Germany’s counter proposals, which, include a moratorium for three years. M. HEREIOT’S DILEMMA. PARIS, July 4. (Received July 4, at 10 p.m.) There is little doubt that the revolt of the Radicals against M. Herriot’s Economy Bill is really associated with the carefully concealed discontent at the Prime Minister’s reparations and disarmament policy. Faced with the possibility of resignation, M. Herriot has decided not to' return to Lausanne before Wednesday, so a decision is impossible earlier than that..