LONDON CONFERENCE

Otago Witness, Issue 3495, 8 March 1921, Page 18

LONDON CONFERENCE

ARMENIA’S CLAIMS. THE ALLIES’ OBLIGATION. LONDON, February 27. The Armenian delegation at the confer ence advanced claims for a Greater Armenia to include as much of Galicia as would afford protection against aggression. The Turkish delegates contended that by the Turkish-Armenian Treaty of 1920 Kars and Alexandropol, which the Kemalists occupied, had been ceded to Turkey. In reply to this it was pointed out that the Allies did not recognise tho treaty. Nubar Pasha, head of the Armenian delegation, produced a telegram from the Patriarch at Constantinople, alleging that the Turks had massacred 85 per cent, of the Armenian population in the Kars and Alexandropol regions. The Turkish delegate also urged the claims of Kurdish Armenia, declaring that it already enjoyed wide local autonomy and did not desire independence. Lord Curzon pointed out regarding Armenia that the Powers had not the slightest intention of abandoning the obligation to constitute a united, stable Armenia and restoring the districts of which she was recently deprived, and providing a secure national existence. The meeting decided to submit to the Supreme Council proposals for a possible modification of the Kurdish and Armenian clauses of the treaty in view of recent events. YON SIMONS’S STATEMENT. SUGGESTS INTERNATIONAL LOAN. MR LLOYD GEORGE'S REPLY. LONDON, March 1. At the conference Mr Lloyd George nvited Dr von Simons to speak. , The latter said that he was unable vO accept the Paris proposals in their present form. This was due to the fundamental difficulty of raising industry effectively to the maximum in order to pay the amount fixed, while on the other hand preventing German competition being a danger to the other nations. The German Goveflhment, taking the Paris proposals as a starting point, had arrived at very different conclusions. The Paris Conference imposed annuities amounting to six milliards of marks. This must be paicj by surplus exports. Experts had agreed that in ordei to pay the annuities the German exports would require to be four times greater than the annuities. This ratio was chiefly due to the necessity of importing raw material and food. Germany’s burden had increased through the deprivation of territory from which she had previously derived raw materials, thus forcing up the prices fourfold. This would constitute a menace to the rest of the world. Referring to the export duty, he said this must either be paid by the consumers, if they accept suen a price, or be paid by German industry, which would thereby be weakened m power to compete, resulting in a decline m exports. Germany was now able to export owing to the favourable exchange and the lower cost of production. These conditions, however, would probably not be lasting. Tire present conditions really represented the state of sickness of German industry caused bv the condition of the currency. It was difficult for Germany to make defi nite proposals; but the German people were willing to ma.ke sacrifices, and were prepared to submit definite instead of m definite propositions. The German Got ernment thought that the payments should not be too heavy or be extended over too long a period. The German people feared to see their children and grandchildren overburdened. The Govern ment thought it best to fix the total capi tal sum payable. They would thus pay interest and sinking fund in the usual way. If the Paris proposals were discounted at 8 per cent, on their present value the amount would be 50 milliards of gold marks. There was a dispute between the German and Allied experts over the amount already paid in reparation. The Germans estimated it at 20 milliards of marks, thus reducing the amount to 30 milliards. This, according to her experts, was the utmost Germany could pay. Germany would agree to a joint commission of experts to value the reparations already paid. Dr von Simons suggested that in ’ order to make the German obligations

immediately effective t n e commission should issue an international loan as soon as possible, on which Germany would Find interest and sinking fund. Germany was not in a position to accept the Paris proproposals, which were based on a too transient conception of German industry. Fifty milliard gold marks was all that Germany was able to pay. Germany estimated that she had already paid 20 milliards. He suggested that the remaining 30 should be provided by an international loan of eight milliards, and that the remaining 22 milliards should bo capitalised, Germany paying interest and sinking fund. The experts thought it impossible at. the present time to raise more than eight mil liards, and then only by special terms such as freedom from income tax, to which some nations might object. The remaining 22 milliards should remain unissued,

and on this amount Germany could pay interest and sinking fund. The term of the indemnity should be fixed at 30 years. During the next five years the payments would have to be in labour .and kind; 1926 would be the year of Germany's capacitv to pay. She would be able then to mobilise her industries and arrange a plan of payment. Mr Lloyd George, at the conclusion of the statement, said that if Dr von Simons thought it worth while he could put ui any documents; but from wliat he had said klr Lloyd George thought the German Government completely misunderstood the realities of the position. The Allies had already agreed that the proposals made could not be either discussed or considered as alternative to the Paris proposals. The Allies would discuss the situation in the afternoon and meet the Germans to-mor-row morning.

MR LLOYD GEORGE TO NETHERLANDS’ FEDERATION. LONDON, March 1. Mr Lloyd George has telegraphed a sharp reply to the Netherlands’ Federation of Trade Unions, which urged that the conditions of German reparation should not foster fresh hatred amongst nations or impose year-long slavery upon millions of working people. Mr Lloyd George replied that he had been surprised to receive a telegram of protest from the Netherlands Trade Unions. ‘I do not recollect,” he said, ‘‘that during the war, when an Imperialist German Government was endeavouring to deprive the working classes of France and Belgium of their liberties, the trade unions in Holland made any protest. I do not recollect that they protested against the deportation of Belgium and French workmen to slave labour in Germany.” So far as Mr Lloyd George can make out, their present protest is only calculated to leave upon the working classes, especially in Trance and Belgium, not merely the costs of the war, but the immense burden of repairing the war damage done by the Germans. “Surely,” he adds, “it is just that the authors of the war should bear a fair share of the cost of restoring the ravaged countries.” UNEDIFYING ADDRESS. LONDON, March 1. The Daily Telegraph’s diplomatic correspondent says that it seems that from the first Dr von Simons’s proposals were utterly unacceptable. It caused all the leading delegates to give vent to mingled feelings of amazement, annieement, and indignation. One said that it was either a case of incredible ignorance, impudence, or stupidity. During the first few minutes of the sitting it seemed that Dr von Simons was attempting to propound a reasonable scheme, but when he argued that the total amount under the Paris Agreement was not four milliards sterling, but in reality two milliards, his hearers were puzzled. Later they found that the reason was that Dr von Simons himself was putting forward an offer of 2 3 milliards, but this was inclusive of the milliards to be delivered in specie and goods by May 1 under the Versailles Treaty. Thus the German offer was reduced to what was equivalent to only I J, milliards, of which Dr von Simons invited the Allies to subscribe the first four hundred millions. This means a loan. In fact, Dr von Simons wishes the Allies to accept an annual payment of fifty million sterling, instead of annuities amounting to five or six times as much. About 1 o’clock Mr Lloyd George sent a note to his colleagues asking whether the time had not come to invite Dr von Simons to conclude his unedifying address. Dr von Simons, scenting trouble, hastened to cut short his speech. At another time Mr TJovd George whispered to M. Briand : “If Simons goes on another ten minutes the Allies will oe obliged to pay an indemnity to Germany.” “WE HAVE DONE OUR BEST.” LONDON, March 2. A fhember of the German delegation, in the course of a newspaper interview, said : “We have done our best. We have offered the uttermost farthing. The next move is with the Allies, who imagine that they are going to enforce the Paris sanctions, for which there is no justification. We hold now to the Versailles Treaty with its penalties in the event of our failure to carry it out.” CONFERENCE WITH MARSHAL FOCH AND SIR HENRY WILSON. LONDON, March 2. The conference heard the views of its legal advisers and subsequently conferred with Marshal Foch and Sir Henry Wilson. REPLY TO GERMAN DELEGATES. DEMANDS TO BE ENFORCED. ALLIES’ INTENTIONS OUTLINED. LONDON, March 2. Crowds lined the front of the palace and cheered the arrival cf the Allied delegates. After Marshal Foch had delivered a lengthy speech, Mr Lloyd George outlined the views of the Allies. He said that, having regard to the infractions of the Treaty of Versailles, and indications that Germany meant still to defy and explain away the treaty, the Allies must act on the assumption that the German Government was not merely defaulting, but that she was deliberately defaulting. Unless the Allies heard by noon on Monday that Germany was either prepared to accept the Paris decisions or to submit proposals which in other ways would be equally satisfactory, the Allies had agreed to take the following measures: First, the occupation of Duisburg, Ruhrort, and Dusseldorf. Secondly, the Allies would obtain powers from their respective Parliaments requiring their nationals to pay a certain proportion of all payments due to Germany on goods purchased in the Allied countries to their several Governments, and this money would be retained on a reparation account. Thirdly, the amount of the duties collected by the German Customhouses on the external frontiers of the occupied territories would be paid to the Reparations Commission. These would continue to be levied in accordance with the German tariff. A line of Customhouses would be temporarily established on the Rhine and at the boundaries of the parts occupied by the Allied troops. The tariff levied on the occupied territories would be fixed by the Allied Rhine Commission, and would apply to the goods both on entry and export. Mr Lloyd George said that Dr von Simons might prefer to examine the Allies’ statement before replying.

Dr von Simons said he would like to answer at once. He added : “ The German delegation is going to examine the speech and documents, which Mr Lloyd George will transmit to us with the care due to their importance, and we will give an answer before noon on Monday.” He said he thought that Mr Lloyd George misunderstood the German attitude; but he believed that there would be no occasion for the impost of sanctions. xlr Lloyd George, in addressing the German delegates, said that any modification which might be permissible by the immediate acceptance of the proposals will be abandoned if force is necessary. Germany must accept the responsibility for the war and interpret her obligations accordingly. N Dr von Simons intimated that Mr Lloyd George’s statement on Tuesday was not fully appreciated, owing to the language difficulty. An adjournment was granted till Monday to enable the German, delegates to communicate with Berlin. GERMAN DUPLICITY. LONDON, March 3. Mr Lloyd George, in addressing the German delegation, said that Germany ■was a defaulter, notably in respect to the trial of the war criminals, disarmament, and the payment in cash or kind of 20 milliards of gold marks. The Allies had displayed no harsh insistence upon the letter of their bond. They had extended the time, and had even - modified the character of their demands; but each time the German Government had failed them. Military organisations —some of them clandestine —had been allowed to spring up all over Germany, and they were equipped with arms which ought to have been surrenderee!. The Allies were reluctantly convinced that the German Government does not intend to carry out its obligations, or has not strength enougn to insist upon the necessary sacrifices being made. Mr Lloyd George said: ‘ We have no desire to impose bondage, and are not asking for a penny towards the costs of the war. We have simply insisted that Germany should pay the reparation for injuries inflicted on the Allied countries and peoples. The German people have no notion of the devastation wrought as the result of the Imperial Government’s action in August, 1914. When they realise this, their attitude of mind will change. Twenty-one thousand factories were destroyed in France, and it will take 10 years to re-establish the French mines; 1659 communes were completely destroyed, and an incredible amount of damage was done deliberately. Blast furnaces and rolling mills in Belgium were deliberately blown up in order that the works should not compete with their German rivals. Unless reparation is made bv Germany the victors will pay the price of defeat and the vanquished will reap the fruits of victory. What Germany offers is not onefourth of the amount required to repair the damages, and the offer is only made on condition that the Allies first find tile amount out of their own pockets on highly privileged terms, when we can with difficulty find money in our own markets for the ” essential work of the Government. Such proposals are an offence and an ex asperation. Germany’s failure to bring up her taxation to the'level of the taxes in tile Allied countries itself constitutes an infringement of the Treaty of Versailles. Until Germany does this she is not in a position to plead that she is unable to meet the Paris proposals.” ULTIMATUM TO GERMANY. LONDON, March 3. Mr Lloyd George, in the House of Commons, announced the ultimatum to Ger manv. He said that the Allies are unanimously of opinion that Dr von Simons’s proposals did not afford any basis for examination, and fell far short of Germany’s obligations under the Peace Treaty. GERMAN REPARATION. PARIS, March 3. The Reparations Commission has notified Germany that, contrary to Berlin calculations, the balance Germany will ovvo before April 30 will exceed 12,000,000 gold marks. RESPONSIBILITY FOR THE? WAR. LONDON, March 3. Mr Lloyd George said that the Allied proposals were tendered in a spirit of conciliation to induce an .amicable settlement with Germany. The counter-proposals were a mockery of the treaty. The Allies came to this conclusion not only from the German counter-proposals but also from a perusal of Dr von Simons’s speeches and support they received in Germany. For instance, Dr von Simons repudiated the German responsibility over the war. The repudiation of the war was acclaimed throughout Germany. For the Allies the German responsibility for the war was fundamental, and if that acknowledgment were abandoned the treaty would be destroyed. “ We regard a free and contented Germany as essential to civilisation,” said the Prime Minister, ‘ and we regard a discontented, enslaved Germany as a menace and a burden, to European civilisation.” PREPARATIONS TO ENFORCE TERMS. PARIS, March 3. The decision of the London Conference met with universal approval except by the extremists of the Left Wing. The decision is regarded as a triumph for French diplomacy. In anticipation of events, men, guns, and ammunition have already been sent to the eastern frontier, and reserve officers have been told to hold themselves in readiness. Everyone in France believes that a real display of force will be neces sary to make Germany yield. LONDON, March 3. Replying to questions, Mr Lloyd George said that in the Government’s view ample safeguards had been taken by the Allies

to curb the future military equipment of Germany. PARIS, March 4. The Times’s correspondent advises that France’s Dreadnoughts are coaled and munitioned at Toulon ready to join the British blockade, and occupy Hamburg. FRESH PROPOSALS BY GERMANY. “ PLAYING FOR TIME.” LONDON, March 4. It is understood that the German Cabinet has decided to make an effort to prevent the Allies’ sanctions being put into operation ; therefore Dr von Simons will make fresh proposals on Mondav. One delegate states: “We are now considering with the experts a*- new basis of taxation in Germany which it is hoped will enable a better offer to be made.” He frankly admitted that the delegation did not believe that the Allies would accept the counter proposals, which were made with a view to maintaining the faith of the German electors and to play for time. There is some suspicion that the Germans will again raise the Communist bogey to intimidate both the Allies and a certain section of the German electors. March 5. It is understood that Dr von Simons has received alternative proposals from Berlin for submission to the conference on Monday, based on increased taxation, which will give the Allies three-quarters of the indemnity demanded, but the German delegates fear that cohditions will make this unacceptable. It is reported that the delegates are united only in desiring to gain time; otherwise there are sharp divergences in the German Cabinet, which is anxious to confer further with financial and industrial magnates. Meanwhile Mr Lloyd George is consulting Earl Beatty and General Foch. and has summoned Degoutte (the Allied generalissimo of the Rhine forces) to Paris. Mr Lloyd George refused Dr von Simons’s request for a private conference with M. Briand and himself prior to Monday's conference-. PANDEMONIUM IN REICHSTAG. BERLIN, March 5. All parties, except the Independents and Communists, cheered the Reichstag president's declaration that Mr Lloyd George’s speech was irreconcillable with the Versailles Treaty. Pandemonium succeeded the attempt of a Communist, Herr Hoffman, to demand the reading of the whole instead of extracts from the speech, necessitating the sitting being suspended. Herr Ebert has summoned the party leaders to discuss Cabinet reconstruction, with a view to the inclusion of the Nationalists and Socialists. GERMANS LEARNING THE TRUTH. ILONDON, March 5. The Daily Telegraph’s Berlin correspondent states that the evening papers featured Mr Lloyd George’s catalogue of the destruction in France, bringing home for the first time to many Germans thenormity of the havoc in Northern France. STOCKHOLM, March 4. 31. Branting, writing in the Social Demokraten, sharply criticises the London Conference, and says it is a fiasco. London does not mean to triumph for threatening creditors, but does mean to triumph over Lenin. SEVRES TREATY. LONDON, March 1. The Daily Express states that the Allies have agreed to modify the Sevres Treaty in Turkey’s favour and the Turks have accepted the alterations. ATHENS, March I. The Greek Government has decided to refuse the Supreme Council’s proposed Inter-Allied Commission regarding Thrace and Smvrna. LONDON, March 5. The Greek and Turkish delegates attended a conference at St. James’s Palace. 31. Calogeropoulos announced that the Greek National Assembly had considered the Allied proposal regarding a commis sion. of inquiry into the Smyrna and Thrace questions, and had unanimously pronounced against it. The dispatch of the commission would be equivalent to Greece’s surrender of rights which were definitely established by the endless sacrifices of the Greek nation, and which the Treaty of Sevres consecrated. The proposal amounted to asking Greece to bind herself beforehand. The Turks later admitted that they had agreed to an inquiry by the Greek National Assembly, and that they were also ready to accept the other provisions of the Treaty of Sevres, provided they were adapted to the conditions which were indispensable to the existence of a free and independent Turkey.