NEWS BY CABLE.

Otago Witness, Issue 3619, 24 July 1923, Page 17

NEWS BY CABLE.

REPARATIONS. THE FRENCH STANDPOINT. PARIS, July 15. M. Poincare, in unveiling a monument to the late M. Odent, Mayor of Senlis (33 miles north-east of Paris), who was shot bv the Germans in 1914, referred to the various propositions which are now the subject ot Anglo-French negotiations. M. Poincare declared that what France wanted to do was to make the Versailles Treaty respected. France had never ceased to make concessions, and since the armistice she alone had borne great burdens. France had been badly treated altogether. She had a majority of the interests at stake, and she had a minority of representation on the Keparations Commission. Efforts were being made to replace the Commission by an international financial committee, but this was not in I? ranee's general interest. “We proposed,” continued M. Poincare, “to relieve the German debt by the cancellation of the interallied debt, hut we were considered to be asking too much. Nevertheless, Germany has been so well cared for during the last three years that she is able to leave her obligations unfulfilled, and France has had to pay one hundred milliards of marks which Germany should have paid. Have we not tolerated the reconstruction of Germany s shipping, and the development of her canals and railways, and the enrichment of her industries? Equal firmness on the part of all of the Allies would have made such bad faith impossible, Germany now has organised resistance, and France has been formed to accentuate the pressure. Were France not in the Ruhr her hands would have been empty, whereas she now holds pledges, and she does not intend to let them go.” M. Poincare said that he was always a faithful partisan of the Anglo-French Alliance, and even before the war he believed in a close union of the two great nations of Western Europe. None, therefore, would regret it more than himself if any shadow should darken the friendship to which he had contributed. He knew that the Allies were as honest as themselves, and he felt assured that in the end they would agree that France was right. AN OFFICIAL DISCLAIMER. PARIS, July 16. The officials of the Q.uai d’Orsay are anxious to make it clear that M. Poincare’s speech is in no way a reply to Mr Baldwin. They state that M. Poincare’s speech was prepared before Mr Baldwin spoke, and was merely an exposition of France’s position. GERMANS HANDED OVER. LONDON, July 16. The Daily Telegraph’s Dusseldorf correspondent says that the German police in Essen arrested five Germans caught cutting French military telephone lines. This is the first instance of German authorities arresting culprits in the occupied territory. The fact that they handed the men to the French court martial is taken to indicate a better understanding between the municipal government and. the occupation forces. The leader of the squad was sentenced to death. At Aix-la-Chapelle Count von Keller, a former engineer officer in the Prussian army, was sentenced to be shot for trying to wreck a train. DEPUTATION TO REPARATIONS COMMISSION. PARIS, July 18. The Reparations Commission received a German deputation concerning proposals for meeting the payments. The Commission’s decision will be given in due course. DEBT-FUNDING ISSUE RAISED. NEW YORK, July 18. The correspondent of the United Press at Washington learns officially that the United States Government will refuse to participate in the British plan for the settlement of the Ruhr and reparations crisis if the Note involves the question of the Allied debts to the United States. It is generally presumed from Mr Baldwin’s latest speech that such a linking up will he inevitable. The correspondent understands that Mr Hughes (Secretary of State) has already expressed to some of the diplomats his opposition to such linking of the debt and reparations question, as the United States maintains that these questions are totally unconnected. FRANCE’S ATTITUDE CHANGING. LONDON, July 17. On the eve of the despatch of the British Note regarding reparations the situation between France and Britain is distinctly easier. The Daily Chronicle’s and the Dailv Telegraph’s diplomatic correspondents insist that there is a marked change in the French attitude towards Britain. FRENCH GRIP TIGHTENED. LONDON, July 17. The Berlin correspondent of the Daily Express states that the blockade of the occupied territory, which was expected to esnd on July 15 at midnight, lias been extended for 10 days. Thousands of German women and children, finding that there were no trains, attempted to walk across the frontier, many wheeling goods in handcarts, but the poilus allowed none to pass. FACING ECONOMIC CRISIS. LONDON, July 17. The Daily Telegraph’s Dusseldorf correspondent says that what appear* to be a

formidable economic crisis in the Ruhr is practically certain within eight or ten days. The great foundry owned by the Bochumer Verein, employing 20, OOP workers, has closed, and the Krupp steel works employing 4000 men has ceased operations. The textile trade is also seriously affected. Owing to the fall of the mark the manufacturers are unable to purchase English coal, and they declare that the situation is so grave that they will be compelled to close, throwing thousands of persons out of work. There are doubts whether the authorities will be able to keep the huge number of unemployed quiet. The Govern ment has met the situation up to the present, 'out it is now grave. The official statistics in Cologne show that the cost of living has doubled in the period from June 20 to July 11. FRENCH SEIZE STRIKE PAY. PARIS, July 19. Advices from Dos eldorf state that the French seized 26 milliards of marks which were intended for the railway strikers. THE BRITISH NOTE. LONDON, July 20. Cabinet had three documents under consideration yesterday—a draft of the reply to Germany, a covering letter to the Allies, and an explanatory memorandum. The meeting lasted for three hours, and it will be resumed to-day. It is emphasised that there is no division of opinion on the British policy or m regard to the methods with which the policy will be carried out, but Cabinet is anxious to place before the Allies not only the British policy but the arguments for it. The Daily Telegraph’s diplomatic correspondent, in giving an instance of the meticulous care with which the documents are being prepared, says that the views of statesmen outside the Cabinet have been informally ascertained, particularly those of the older statesmen whose opinions command confidence at home and abroad. Cabinet, after a protracted meeting, filially approved the draft Note for submission to the Allies. The greatest secrecy is maintained regarding its terms, but it is understood that while the British attitude is being maintained, every effort is made to reconcile the F’rench viewpoint with that of the British. It is expected that the Note will be handeS to the respective ambassadors to-morrow. TERMS OF THE NOTE. LONDON, July 21. The Daily Telegraph’s diplomatic correspondent says that the draft reply assents in principle to the German request for the assessment of their capacity for payment by an impartial body of experts, but carefully omits to specify the composition of that body. It also suggests that the three types of guarantees offered m the German Memorandum will be considered without prejudicing the question of their completeness or sufficiency. The reply is not unfavourable to the German request for a conference with the Allies. It contains no direct condemnation of passive resistance, but expresses regret at the calamities created bv the Ruhr situation. The reply is much shorter than the Memorandum to the Allies. The Daily Express nderstands that the covering letter expresses the conviction that it is desirable to appoint an international commission to investigate Germany’s capacity to pay reparations, and indicates that Britain is not in a position to ask the German government to abandon passive resistance in the Ruhr because tire British Government believes that the French occupation is contrary to tne terms of the Treaty of Versailles. The letter adds: “If France is willing to refer the question of the legality of the occupation to the Hague Tribunal and to abide by its decision, the British Government would press Germany to abandon her passive resistance immediatelv, and also to abide by The Hague findings.” RECEIVED AT QUAI D’ORSAY. ' July 22The British Note has been received at the Q.uai D’Orsay. M. Poincare, receiving journalists, refused to comment, saying “If France discloses its contents England will break the negotiations. Likewise, if Britain discloses them, France will break negotiations.” Nevertheless, circumstantial details arc in circulation in Paris. They are mainly on the lines of the Daily Telegraph extract cvbled yesterday. Tire Sunday Times Paris correspondent says: “ What pleases France is the fact that the British Note is couched in such terms as allow for important modifications leaving the door open for further exchanges between the two Governments." OFFICIAL SILENCE MAINTAINED. BRUSSELS, July km. The British Note has arrived. Official circles maintain silence, but favourable impressions continue. WASHINGTON, July 21. The State department announces the receipt of the British Note regarding Ruhr reparations. Comment is declined. A GERMAN’S HEROISM. BERLIN, July 20. A dramatic sequel is reported to an heroic act by Max Fladt, a German hotelkeeper, who recently risked his life to save two French soldiers who had fallen into the Rhine. A delegate from the Rhineland Commission called to thank the rescuer on behalf of the French Government. He invited Fladt to express any wish that he liked, promising that it would be granted. Fladt hesitated a moment, and then begged for mercy for

seven Germans who were • _.;. enced to death at Mayence. The delegate was nonplussed, and asked for delay. It is understood that the request has been forwarded to the French general commanding. A RECORD SI.CMP. BERLIN, July 19. The mark lias slumped to 1,450,C00 to the pound—a record. The Germans on the Bourse made frantic efforts to buy foreign currency from the hanks, presenting demands aggregating 20,000 milliards of marks, which is equal to about £14,000,000. at yesterday’s rate of exchange. The directors of the Reichsbank described the demands as shameful, since they represented more than the whole monetarv reserves in the Berlin banks. If such a demand was repeated, the Reichsbank would refuse to discount the purchasers of foreign currencies, and thus make it impossible to buy sterling or dollars. The Reichsbank finally granted a quarter of 1 per cent, on the day’s demands for foreign currencies. LONDON, July 20. The record slump of the mark is apparently caused by banking troubles in Berlin. The Reichsbank has protested against the large business in marks done by foreign banks, and threatens retaliatory measures unless this is checked. The mark closed at 1,550,000 to the pound. The exchange rate at Berlin touched 2,000,000 marks to the pound and closed at 1,750,000. WILD WAR SPEECH BY LUDENDORFF. BERLIN, July 21. German gymnasts assembled in Munich were greeted by Marshal Von Ludendorff with a wild speech inciting them to war “ Germany demands from its youth/' he said, “ burning love of their own country in a war of revenge against the enemy. Gymnastics is only a means to an end—to strengthen your fists and your spirits. It is the spirit which raises the fist and enables it to fall upon the head of the Fatherland’s enemies.” FOOD RIOTS IN BRESLAU. BRESLAU, July 21. Six persons were killed, 17 wounded, and 100 arrests made during food riots, when 60 shops were pillaged by strikers, who were angry at the rising prices, and a* tacked the shops when their wives reported that food was still dearer.