REPARATIONS.

Otago Witness, Issue 3618, 17 July 1923, Page 18

REPARATIONS.

BRITISH MINISTERS’ VIEWS. LONDON, July 8. Mr Neville Chamberlain, speaking at Birmingham, said that the Ruhr occupation had been of little benefit to France. It had perceptibly diminished Germany’s capacity to pay reparations. The situation could not be allowed to drag on indefinitely. The issue, concerned not France alone, and the time had come for more definite steps to reach a settlement before the complete collapse of Central Europe occurred. Mr A merv said: “The Ruhr situation has become so serious that we are bound Boon to assert our views more definitely.” LEAGUE OF NATIONS CRITICISED. LONDON, July 8. The Daily Telegrapn s u.plouiaue correspondent says: “There is a growing feeling among British statesmen that jf the Ruhr and reparations problems had been handled from the outset by the League of Nations’ Council in the resolute manner which has since characterised its handling of the Saar problem, progress towards a settlement might already have been achieved. Hitherto onlv the reparations aspect has been considered by the Council, and that only in a decidedly timid form, based on vague instructions and subject to France's veto. The problem should have been raised in the most imperative form under Article 11 when no single Power could have vetoed discussion, if, as a result of senseless acts of sabotage and equally ruthless reprisals, a diplomatic rupture ensues, and the Ruhr peril becomes acute, Britain may be impelled to invoke Article 11.” FRUITS OF VICTORY MUST BE PLUCKED. PARIS, July 8. M. Millerand, speaking at Puy de Dome, said that nothing would make France abandon her methods or her goal. Fictorv had not yet been won because the fruits of victory were still being disputed by fraud and trickery. If the vanauished were allowed to baffle the victors here would be no such thing as justice or right in the world. THE DUISBURG OUTRAGE. BERLIN, July 8. The French and Belgian Ambassadors visited Dr Cuno, end contended that the German Government was responsible for

the Duisburg affair. They asked Dr Cuno to disavow the act and to do his utmost to arrest the culprits. Dr Cuno replied that the Government was not responsible, and proof was lacking that the perpetrators were Germans. He ’aid he would determine what course to pursue when his investigations were concluded. BRUSSELS, July 8. There is a possibility that the Belgian Minister and the rench Ambassador will leave Berlin, owing to tbe unsatisfactory reply to their representations to Dr Cuno. BERLIN, Julv 8. Dr Cuno informed Monsignor Pacelli, the Papal nuncio, that the acts of sabotage in the Ruhr arose from the unconsidered actions of the tortured inhabitants. He added that his Government condemned the criminal use of force. OCCUPATION OF FRANKFORT. BRUSSELS. July 8. The French occupied the outlying houses of Frankfort. GENEVA, July 8. The Council of the League of Nations, in a public final session, unanimously adopted a resolution that it was useless to discuss the provisional Saar ordinance, which was withdrawn. As regards the other extraordinary measures taken by the Governing Commission in the Saar/the Council leaves it to the Commission to decide when it will be convenient to revert to common law. The Conned expressed satisfaction with the amnesties recently granted by the Commission, and also great appreciation of the ■Commission’s administrative -work in particularly difficult circumstances, and assured the Commission of its full support. M. ITanotaux expressed satisfaction at the settlement of a delicate question. IMPRISONMENT OF LEADING GERMANS. COLOGNE, July 9. The French announce in Dusseldorf tnat, in retaliation for the arrest of the French citizen M. Schuldee in May and his detention pending trial at Lepizig, they have decided to arrest every other dav one Gem an in a good position who will be kept in ordinary cells till M. Schuldee is released. They have already imprisoned a high school professor, a bank director, a lawyer, and a college principal. POLITICAL EFFECT OF OCCUPATION. LONDON, July 9. Tbe Berlin correspondent of The Times says that the segregation of the Ruhr

makes existence increasingly unbearable for the workers. Therefore, from their representatives there goes out continual pressure on the Government to keep its policy moderate so that no chance of coming to terms with France may be lest. At the same time, France’s Rubi policy is driving the—-Nationals of the Right to more violent opposition. The results of the provincial elections suggest that the Centre Party is going to tin wall, and that the Cuno Government is becoming more susceptible to the Right. As a matter of fact the heads of any Government giving signs of a readiness to parley would be in danger of assassination by murder bands of the Right. The conditions are becoming like those of 1918, but this time tie Right does not mean to be stabbed from behind by a revolution of the masses without a struggle. It is getting ready to fight, and means to get its blow in first. BUTCHERS’ SHOPS RUSHED. BERLINI, July 9. Food riots occurred at Nowawes, near Potsdam. Thousands of people rushed the shops and compelled the butchers to sell meat at 10,000 instead of 40,000 marks a pound. The police restored order. HINT BY” LORD CURZON. LONDON, July 10. Lord Curzon has had a conference with the German Ambassador (Dr Sthamer) and discussed with him sabotage in tile Ruhr and Rhineland anl also the general question of passive resistance. Lord Curzon gave a decided hint that the German Government would be well advised to make it unmistakably clear that it disapproves of acts of sabotage. BELGIAN SHOT AT DUISBURG. BERLIN, July 10. Another outrage occurred at Duisburg, when a Belgian soldier was shot by a German, who escaped. AN EFFECTIVE HINT. COLOGNE, July 11. Acting on instructions from Berlin the President of the Rhine Provinces has issued an appeal to the population to refrain from acts of sabotage, to which the Government is sternly opposed. ALL ELEMENTS OI A NEW WAR. LONDON, July 11. Mr Ben Tillett (Labour member of the House of Commons), in addressing the Transport Workers’ Conference, and basing his remarks on the recent visit of the trade union delegates to the Ruhr, said he was pro-French in disposition, but he regarded the French occupation as madness. It was the outcome of a dilemma of statesmanship which was too cowardly to face the industrial and economic, facts and the international situation. While the situation arose out of the Versailles Treaty, it was really promoted by sordid capitalists and war profiteers. Tire Trade Union delegates who visited the Ruhr found the menace greater than they anticipated and predicted war. Our statesmen were now trying to burk the issue. We had one of the strongest possible men in the Prime Minister, hut unless he was backed up by the working classes to resist war he would be dragged in by diplomacy. If we were to be saved from war we must save both Germany and France. Nothing but war or the threat of war would take France out of Germany. The workers must realise their responsibility. They must call on the French and German workers to join in preventing war. BRITISH VIEW DEFINED. END OF' OCCUPATION DESIRED. LONDON, July 12. Speaking in the House of Commons, the Prime Minister (Mr Stanley Baldwin) re viewed the international situation in respect to reparations. His statement was eagerly awaited by a crowded House. Mr Baldwin said: “We are as determined as are our Allies that Germany shall pay reparations to the utmost of her capacity, but if she were to lie asked to pay in excess of her capacity it would mean Germany’s ruin, which would be fatal to Great Britain and to Europe- A less amount of reparations has been received since the Ruhr occupation than were paid before that action was taken, and what is now being exacted is at the cost of the dislocation and the probable collapse of the German economic system.” Mr Baldwin said that a reply to Germany would be proceeded with forthwith. It would not be too much to say that the recovery of the world was in danger, and that peace was at stake. In these circumstances the necessity for action had been increasingly impressed upon the Government. The German Note should not be ignored, but explored. The British Government had informed France, Belgium, and Italy that it would take the responsibility for drafting a reply, and would submit it to the Allies without delay. Such reply had no other object than the pacification of Europe. THE PEACE OF EUROPE. Continuing, Mr Baldwin said that he indulged in the hope that they would be able to arrive at an agreement regarding terms. The Government confidently invited sympathetic consideration by all the Allies and by all interested States to proposals which had no other aim than the pacification of Europe and the recovery of an exhausted world. Reviewing the position, the Prime Minister strongly emphasised the community of thought and action which bound Great Britain in the present emergency to the Allies. He made an especially sympathetic allusion to France. He said the British Government was moved, as were the Governments of France and of the other Allies, by a sing’e desire.—that the goodwill bet ween tile nations which had endured together should be maintained and each obtain its due. Be emphasised that the

British anticipations regarding the consequences of the Ruhr occupation were largely realised. The indefinite occupation by one country of the territory of another country in time of peace was a phenomenon rare and regrettable in itself, 1 to which an honourable end should as soon as possible be found. Peace would not finally be obtained or recovery ensured till a solution was found of the reparations question and a settlement of inter-Allied debts was recorded. ALLIES’ COMMON CAUSE. Referring to the Allies’ common desire for a settlement and for pacification without further or unreasonable delay, Mr Baldwin said “The whispers of interested parties cannot be allowed on either side of the Channel, or in any part of Europe, to deflect us from that duty by any re servations, or carefully-fostered misunderstandings. We are as determined as any of our Allies that Germany shall make reparation for the damage done in the Great War, and to the fullest extent of her capacity. We have never wavered on this point, and I do not believe that the people ever will. Indeed, we are ready to use every measure to compel Germany to pay up to the amount of heT capacity.” Mr Baldwin emphasised that the spirit, of sincere loyalty to the alliance was, in the Government's opinion, the main security to European peace. “We are,” he said, “convinced that the present state of affairs in the Ruhr is fraught with grave peril. The local population in many cases is suffering severely. There is a shortage of food in every country. Europe is paying the price of this state of affairs.” Ho referred to the serious effect on British trade, and continued: “Our unemplovment has involved an expenditure of £400,000,000 since the armistice. It is becoming evident that the attitude of the principal parties concerned must be more clearly defined and the period of conflict as soon as possible terminated. The debtor should not merely be called upon to pav his debt, but he should be placed in a position where he can do so. The Government has no desire to deprive France and Belgium of their legal claims, but wishes to assist their realisation.” THREE ISSUES DEFINED. The Prime Minister continued We have every reason to believe that the views of the Italian Goveriunent are in substantial agreement with our own.” Referring to the German Note, he said: “We are unable to agree that correspondence of this nature should be wholly onesided,, or that proposals which may be found to contain the germs of a possible settlement shall be treated with indifference. We hdld that they should be examined and explored in order to discover whether there lies within them the possibility of progress. What the exact nature of the reply will be it is premature to discuss at the present stage. We do not believe that in principle we are wholly separated, if at all, from the Allies. A divergence in method should not be incapable of solution. So far as united action is possible, w e shall continue to pursue it.” . The Prime Minister added that the positive results of peace could not be secured till three questions were settled—first, payment of reparations: secondly, settlement of inter-Allied debts; thirdly, the security of a pacified Europe. GRAVE NOTE OF WARNING. LONDON, July 12. Lord Curzon, in the House of Lords, made a similar statement to Mr Baldwin’s. Viscount Grey of Fallodon said that while he had no criticism to make he desired to say that it was only the cooperation of France and Britain that could make the reconstruction of Europe possible. Our friendship with France had been so close that the idea of the British Government engaging in separate negotiations with any other Power at the expense of France was inconceivable. He admitted that FYance might make herself secure by a policy such as she was pursuing in the Ruhr for a few years, but the lesson of history was that "no nation or group of nations could in the long run be made secure if such security was obtained at the expense of other nations. If Britain and France fell apart, he could see nothing but the growth of mistrust and suspicion, and the nations in the separate groups preparing to make themselves secure against each other, and finally another war more terrible than the last. A GERMAN SUMMARY. LONDON, July 12. A Cologne message says : “At the close of six months’ occupation of the Ruhr (he German authorities have issued statistics showing that the French and Belgian army in the Ruhr region totalled 87,000. In the old occupied area there are 97,000. There are 10,000 F rench and 1000 Belgian railwaymen in the Ruhr. Niuetytwo Gormans have been killed, 15,714 made homeless, and 169 schools requisitioned, causing 50,000 scholars to crowd into other schools. There have been nine death sentences by court-martial, of which one was carried out.” A POLICY OF DRIFT. BERLIN, July 12. That Germany is just drifting is the only conclusion that can be arrived at. Neither the Government nor any authoritative body lias a definite plan for dealing with the situation. Everybody looks to Great Britain to help, but the haziest ideas prevail as to how help can be forthcoming. Prices rise daily, and every individual is forced to take drastic steps to remain solvent, either by curtailing expenditure or by finding fresh ways of making money. The Government alone goes the old way. It still prints notes to cover the expenditure and raises taxes. The Reichstag was dissolved without the slightest pretence of altering the Budget to cope with the depreciation of the mark.

The Prussian Parliament introduced a Bill automatically adapting taxation to the value of the mark, but Dr Hermes, Finance Minister in the National Parliament, declared that it was impossible for Germany to act similarly. INTERNATIONAL AGREEMENT DEMANDED. LONDON, July 12. Tlie Transporter's Conference (which was addressed by Mr Ben Tillett) passed a resolution demanding pn international agreement based on Germany’s ability to pay reparations and an indemnity in order that the free flow of international trade shall be resumed, and requesting Mr Baldwin to convene a world conference, including representatives of Germany and Russia. A JAPANESE VIEW. TOKTO, July 4. The Osaka Mainichi, one of the leading newspapers in Japan, in discussing a French suggestion for a Franco-Japanese naval alliance, Lays great stress on the point that France’s action in Europe is inimical to the hope which is entertained of world peace. “We have destroyed one militaristic nation,” says the paper, “and another has sprung up in its place. We believe that Japan is about to convince the world of the sincerity of her purpose.” FRANCE AND THE VATICAN. ROME, July 1. It is reported that as a result of tension between France and the Vatican, following the Pope’s reparation letter, M. Jcnnart, the French Ambassador, may be withdrawn from the Vatican. Great importance is attached to M. Jonnart’s action last night in cancelling, without explanation, invitations to a reception which was arranged for July 3. VARYING OPINIONS. LOIN DON, July 13. The terms of Mr Baldwin’s statement were not finally settled by Cabinet till 3 o’clock. Every word in the House of Commons was read from a typewritten sheet. The fact that the Opposition contributed most of the cheers caused comment in the lobby. Inquiries among Ministerialists, hiwever, show general satisfaction, if lack of enthusiasm, which is due to doubts whether practical results will emerge from the statement and the Note prove more to F’rance’s liking than Mr Baldwin’s questionnaire. The Lloyd Georgians discussed the statement at a subsequent meeting, when surprise was expressed that more definite decisions had not been reached after several weeks’ deliberation. l'h Asquithians are favourably impressed. The Labour Party is cordially hopeful that the Government’s efforts will prove successful. Opinions in diplomatic circles are that the statement constitutes a strong act expressed with diplomatic mastery. The Morning Post welcomes Mr Baldwin’s statement as the first instalment of a definite foreign policy, for which the country will be grateful. The Daily Telegraph says : “This country is compelled to abandon its policy of aloofness and to seek by practical methods a way foi*- our friends and ourselves out of the chaotic situation in which all are involved. That is the Government's intention, which was expressed with simple and unquestionable honesty.” The Daily Chronicle doubts whether it was wise to withhold from the world an account of the recent negotiations. The Westminster Gazette remarks: “Tile statement means that Great Britain is preparing to tmke a lead in a belated but determined effort to prevent tbe ruin of Europe.” FULLER STATEMENT LATF.R. LONDON, July 13. The Prime Minister may to-day make a further statement regarding the measure and form in which American interests mav be associated with a solution of the trouble. It should be clearly understood that yesterday’s statement was merely initial, and will be supplemented by a fuller one dealing with the results of the negotiations with the Allies regarding a collective answer. LORD BIRKENHEAD’S SPEECn. LONDON, July 12. In the House of Lords, Lord Birkenhead, in a speech delivered ill an acid, critical temper, asked: “What will happen if FYance does not concur in our reply to the German Note?” He bluntly added: “I do not expect that F’rance will agree. What does the Government mean to do if that happens, as it will? Moreover, what will happen to our army of occupation if the answer is as I have indicated? Are we to keep it in German y when no useful purpose is to be served? Wo should attain a complete understanding with France, not by encouraging her to ignore her considerations, which are influencing opinion in this country, but by complete frankness.” This speech was plainly unwelcome to ■the Government front bench. Lord Curzon did not reply to Lord Birkenhead’s questions. ATTEMPT TO SECURE UNTTY. LONDON, July 13. On the motion of Colonel John" Ward, M.P., the General Federation of Trades Unions passed a resolution stating that the establishment of peace and the proper and natural development of industry would be impossible while France sought to dismember Germany as a nation. He said that France and Belgium had one more chance—and it might well be the last—of reuniting the Allied front. Nothing could exceed the gravity of Mr Baldwin’s language as lie depicted Europe tottering on the brink of industrial and economic ruin. His words were mani-

festly designed to rally behind a new and positive moral conscience the practical .intelligence of the world. At last Great Britain had taken the lead, which the world had been expecting of her since the last gun boomed in 1918. GERMANY'S ABILITY TO PAY. LONDON, July 13. It is understood that the Note is already partly drafted. It will l>e completed and sent to the Allies at the earliest moment. If M. Poincare does not approve of it Great Britain will make a separate reply. The Daily Telegraph says that the suggestion in the British Note regarding an international Commission to assess Germany’s capacity for payment will probably be framed in a way that will bring the Commission into harmony with the Versailles Treaty by associating its authority and labours with those of the Reparation Commission. UNACCEPTABLE PROPOSALS. PARIS, July 13. Official circles do not expect the British Note to be anv more acceptable than Mr Bonar Law’s January proposals. The British proposal in January, briefly, provided for a reduction of the indemnity from the original figure of £6,600.000,000 to £2.500,000.000; for a moratorium of four years for Germany; for the setting up of an Allied Council in Berlin to supervise German finance; and for the wiping out of the debts of the European Allies b y a process of give and take. FOIfIX'AST OF FRENCH POLICY. PARIS, July 14. M. Poincare will speak at Senlis to morrow, when he will give the French attitude to the British policy expounded by Mr Baldwin. It is believed that France will gladly associate herself with signature to the British Note provided it insists on the cessation of passive resistance. France refuses to refer the que tion of reparc tions to the League of Nations. The Exchange Telegraph’s correspondent learns that France is willing to co-operate in providing a Note that insists upon Germany ordering a cessation of passive resistance and cancelling the ordinances forbidding the German officials to cooperate with the French in the Ruhr. LONDON, July 14. The Daily Express says that the con ditions on which France is prepared t< co-operate in the Note to Germany arc known in London to include the following : First, the Note shall declare against German passive resistance and sabotage. Secondly, the proposed inquiry into Germany’s capacity for payment shall he conducted by Allied experts exclusively. Thirdly, the authority of the Reparations Commission shall be maintained. France would oppose the admission of neutral countries, but would he prepared to admit America. “ATTEMPT TO SOLVE THE PROBLEM.” BERLIN, July 13. Mr Baldwin’s statement was received too late to produce much comment. The Tageblatt says: “ Germany may be thankful for England’s attempt to solve the reparations problem.’ Vorwaerts states that the speech meets half-way the expectation of the Berlin optimists and the Paris pessimists, and adds that Mr Baldwin is operating with silk gloves. CUNO GOVERNMENT CRITICISED. BERLIN, July 13. A sensation was caused in political circles by the Prime Minister of Saxony’s declaration in the Parliament of Dresden that Dr Cuno’s Government was not making sufficient efforts to solve the Ruhr problem, and was merely following a policy of drift. The consequence would be disastrous. Dr Zeigner added that he was certain that a revolution was approaching. OFFICIAL GERMAN STATEMENT. BERLIN, July 14. The Foreign Office has issued the following statement for the purpose of inspiring the German press: “ Our oppressed people will oppose militarism with passive resistance. Capitulation would not only make France stronger than ever in the unoccupied areas, but would prevent England from finding a solution of the reparations problem which would satisfy the world.” GOLD SEIZURE AT BARMEN. LONDON, July 13. According to advices from Berlin the French have occupied Barmen and Elberfeld. BERLIN, July 13. The French seized eight milliards of marks in the Reichbank at Barmen. DEATH SENTENCES FOR SABOTAGE. PARIS, July 14. A court martial at Aix-La-Chapelle has sentenced to death three German civilians for sabotage in the Ruhr. HINDENBURG TALKS WAR, The Paris newspapers at the end of May gave prominence to reports of a conversation which Marshal Hindenburg had about that timo with an American, Captain MacMahon. Marshal Hindenburg declared: “We shall have our revenge on France if we have to wait a hundred years. History repeats itself. My most ardent desire would be to take up arms again against the French, who to-day are sowing the seeds of hatred which will produce a terrible harvest.’’ As to the manner of the next war, Marshal Hindenburg said that air fleets would play a big role, but the infantry would always remain the Queen of Battles. Aeroplanes would never take a town or hold a strategic line, or capture a railhead. Cavalry would be transformed into a sort of mounted infantry.