ALLIED CONFERENCE

Otago Witness, Issue 3672, 29 July 1924, Page 19

ALLIED CONFERENCE

CONCESSION TO ERENCH VIEWPOINT. LONDON. July 21. A plenary meeting of the London Conference is expected on Tuesday. Meanwhile Mr MacDonald and the leading delegates are discussing matters at 10 Downing street. The evacuation of the Ruhr led to a sharp controvei'sy between General de Stikker (France) and General Sir Alexander Godlev, who urged a simple reversion to the pre-Ruhr conditions under the Rhineland Convention. The military experts have not yet reached an agreement. Apparently the machinery in the event of a German default is not acceptable to the French Government and the big international financiers. Mr MacDonald if convinced that Germany has no intention of defaulting, so the question is hypothetical and of little practical importance. Therefore Mr MacDonald considers that he can safely make concessions to France on sanctions. THE NATIONALISTS FURIOUS. BERLIN, July 21. Germany has been impressed by the speed and energy of the London Conference. The news of the acceptance of the sanctions clause has fallen like a bomb and has aroused violent fulminations in the Nationalist press. DOMINIONS AND THE CONFERENCE. LONDON, July 20. Each dominion becomes a member of the Empire delegation, and the High Commissioners will attend the conference seriatim, and the others can attend daily and watch the proceedings. The settle ment covers the present conference only, and cannot bo regarded as a precedent affecting the status of the dominions. Sir James Allen points out that the settlement means that the status of the High Commissioners has been raised to the equivalent of Ambassadorial rank. It is only a small beginning of greater things. The High Commissioners’ duties and responsibilities are constantly increasing as the dominions expand, arid it will inevitably mean further recognition until the positions are equal to those of foreign

Ambassadors. Sooner or later this must be thoroughly recognised. The dominions, therefore, should send their best statesmen to represent them in London. The Sunday Observer, in an editorial, criticises the muddling concerning the representation of the dominions at the Allied Conference, and insists that the Empire as a whole must definitely choose a regular system, which when found will have to be accepted, together with the reality it represents, as a fact in international politics, as real as the Monroe Doctrine. July 21. As a sequel to the controversy "regarding the Dominions’ representation at the Inter-Allied conference, Mr J. H. Thomas, replying in the Hoaise of Commons to a question, said that the High Commissioners for weeks had been kept informed daily of the work of the conference. The committees’ arrangements would ensure the Dominion Prime Ministers being kept fully informed. It would be necessary to consult all of the latter who were concerned before the publication of the correspondence. On the subject of dominion representation and commitments by the conference's decisions, Mr Thomas said he was unable to say whether the Canadian Government had consulted the other dominions before publishing the correspondence, but, he added, if the British Government gave permission, it would be necessory tor Britain not only to consult Canada, but the whole of the dominions before it agreed to publication. THE RUHR. RAILWAYS. LONDON, July 22. The question of the Ruhr railways is proving a thorny one for the sub-committee of the Allied Conference. There is reason to believe that it will be referred back to the whole conference. SERIOUS DIFFICULTIES. LONDON. July 22. Mr Ramsay MacDonald yesterday and to-day had a lengthy conference with the chief Allied delegates to the London Conference. Subsequently the Cabinet held its weekly meeting, which was advanced by a day in view of the probability of the plenary session of the conference being held to-morrow.

It was noticeable to-day that M. Herriot was looking pale and tired. He is apparently suffering from strain. Comments in the French newspapers, bast'd on long despatches from their correspondents, make it clear that serious difficulties have arisen. These are chiefly due to the attitude of the bankers towards the proposed loan to Germany. Even M. Herriot’s organ, Ere Nouvelle, joins in the chorus of newspaper comments m declaring that the bankers are influenced by politicians hostile to the Reparations Commission, and aiming at preventing trance from retaining freedom of action in the event of German default. The Matin describes tlve difficulty as serious, and almost tragic, and it says that if M. Harriot refuses the bankers the guarantees they require the Dawes plan will fall to the ground, and if he agrees it will ultimately mean a revision o± the Treathy of Versailles. SECURITY FOR LOAN. LONDON, July 23. The fate of the Dawes plan still hangs in tlve balance. The Daily Telegraph’s diplomatic writer says that M. Herriot on Monday night openly stated that if he had to choose between the £40,000,000 loan and the Versailles Treaty he would choose the Treaty, as he could not compromise the future sovereignty of France. The Belgian statesmen, however, are calmer and more optimistic. M. Theunis immediately got to work upon a new formula, winch is likely to be more satisfactory to the bankers, who were told that if they desired special German revenues to be earmarked for the £40,000,000 loan the Allies would gladly agree. It is stated from French sources that the bankers demand that the question of recognising Germany’s default should be taken out of the hands of the Reparations Commission, and it added that international investors will not subscribe while there is a risk of repetition of the conflicts which have been poisoning international life. American bankers are of opinion that the public will hold aloof if there is any chance of the money going to France in order to pay reparations, instead of Germany using it to restore her own finance. The Daily Herald says: “Mr M. C. Norman (representing the Bank of ivngiand), Sir Robert Kindersley (representing Lazard Freres), and Mr T. W. Lamont (of Morgan’s) are emphatic in declaring that they will not undertake to raise a loan on the present terms. They are anxious that the arrangement should not only have Germany’s formal assent, but also Germany's * goodwill. On the contrary M. Herriot is working under intense pressure from Paris. The shadow of M. Poincare is looming over the conference." OPTIMISM IN AMERICA. NEW YORK, July 22. The European exchanges, responding to the optimistic foreign news, registered a distinct gain, notably sterling, which reached 4.41id01. This* is the highest level in 1924, and represents an increase of nearly three cents within a week. The franc reached 5 2-10 cents and the other currencies gained fractionally. Bankers declared that the market reflects faith in the cabled advices indicating that an agreement to tlve terms of the proposed German loan will be forthcoming despite the present bickering of the bankers and the Conference Committee. THE COMMITTEE) REPORTS. LONDON, July 23. Whatever happens at the full meeting of the Allied Conference to-morrow it is almost certain that the reports of the three committees appointed last week will be considered. The financial experts had two long meetings with the bankers’ representatives to-day regarding the Allies’ views about security for the £40,000,000 loan. It is expected that the bankers’ views will be submitted at to-morrow’s conference. The sub-committee of Committee 2 expects to finish its examination of the question of the restoration of German economic unity to-night in readiness for the consideration of the conference tomorrow. THE PLENARY - SESSION. LONDON, July 23. Though the London conference met in plenary sitting, the day was one of stocktaking* and no progress was made owing to the difficulty with the bankers, though the general belief is that the French delegates are showing a desire to meet the wishes of the other delegates. The Daily Telegraph’s political correspondent says that the British and Ameri can bankers are still intent on doing away with the real Powers of the Reparations Commission, and they also insist that separate action by a single Power should be barred before they will consent to underwrite a loan. France regards this as a step towards the destruction of the Versailles Treaty. All the ingenious formuke presented by M. Theunis (Belgium) have thus far failed to shake the convictions of Mr Norman and his banker colleagues. AN OFP TOTAL COMMUNIQUE. LONDON, July 24. An official communique in connection with the Allied Conference shows that after Mr MacDonald had issued a statement in regard to the representation of the dominions and India, Mr Thomas made an announcement in the House of Commons that a committee of jurists had been appointed to report on the question whether the putting into operation of the Dawes plan would give rise to questions, and, if so, which required to he settled by agreement with Germany, and what procedure should be adopted in order to arrive at such an agreement without in any way running counter to the Treaty of Versailles.

Consideration of the report of the First Committee has been deferred pending the conclusion of the work of the Second and Third Committees. Sir Robert Kindersley submitted the report of the Third Committee regarding the organisation to be established for putting to proper use the payments by Germany, particularly the deliveries in kind. The committee is of opinion that the Reparations Commissions’ existing InterAllied service is eminently suited to this purpose, and it is therefore unnecessary to appoint a new body. As a result o*f the discussion the terms of reference of the Third Committee have been extended. THE FRENCH ATTITUDE. LONDON, July 24. Efforts to effect a compromise to meet the bankers’ requirements are eausing continuous activity in conference circles. M. Herriot still insists on maintaining the Trench right to act alone in the event of an emergency, adding frankly that his Government would not .last a day if it surrended oil this matter. M. HERRIOT DINES WITH BANKERS. LONDON, July zo. M. Herriot, with Mr Norman and other English and American bankers, dined with Lord Swaythling. DIPFICULTIES WITH BANKERS. LONDON, July 25. The fundamental differences at the London Conference which are emphasised by the French comments are summed up in a remark by Le Journal that the situation is stationary, and likely to continue so, owing to the bankers departing from their province of finance and claiming to interfere in political questions. Le Matin and Ere Nouvelle declare that M. Herriot cannot wait indefinitely at London till a formula is found, as French parliamentary and public opinion is uneasy and bewildered. They state that there are excellent French experts capable of carrying on the discussions to a successful issue under the guidance of the Minister of Finance. Tlve Organisation Committee of the German Railways, consisting of Sir William Acworth, M. Leverve, and two German nominees, have concluded their task of drafting the law turning the German State Railways into a company under Allied control, as laid down in the Dawes report. Tire company will he the biggest in the world. The staff will number 700,000 men. A draft has been sent to the Reparations Commission for approval. ADVICE BY M. HERRIOT. LONDON, July 24. M. Herriot assembled the representatives of the French press in London, and begged them to exhort French public opinion to be calm and patient. He added that he intended to be firm on essential questions of principle, hut he said the Allied Governments must be given time to settle their difficulties. The Paris correspondent of The Times says: ‘ ‘Whether, as a result of M. Herriot’s request or not, the French press is less vehement than usual, and while the general impression is that the conference is at the moment at a deadlock, there is a growing belief somehow or other that sooner or later a solution will be found. This, no doubt, is largely due to the alarm which the prospect of failure naturally evokes.” AMERICAN BANKER’S VIEWS. NEW l"ORK, July 25. On the eve of his departure on a vacation trip to Europe, Mr J. P. Morgan officially stated that the American bankers did not desire to make political suggestions, much less attempt to enforce their political views in connection with the discussions for a German loan. He said his trip was not connected with the London Conference, and indicated that if a loan were arranged and his terms were sought he would be glad to make suggestions ior the sale of bonds in America. “It goes without saying,” he stated, ‘‘that as bankers we should not ask American investors to buy German bonds unless and until the Allies in their own time and for their own reasons determine upon a policy which will in our opinion secure the bondholders, If this simple obvious fact is remembered, I think it will be found most of the questions now under discussion will answer themselves.” GERMAN DELEGATES. LONDON, July 26. Jurists at the Allied Conference have completed a report regarding the terms ot the invitation to Germany to the conference. The report will be considered on "Monday, when the question of inviting Germany will be decided.