THE GERMAN NOTE.

Poverty Bay Herald, Volume XLIX, Issue 16117, 4 May 1923, Page 3

THE GERMAN NOTE.

STEP TOWARDS NEGOTIATIONS.

CRITICISM IN BRITAIN

(Elec. Tel Cops right—United Pi-ess Assn.l (Australian and X. 7.. Cable Association) LONDON, May 5.

The Note, is regarded in London as inadequate, and espocialy unfortunate in its Ruhr reference, but there are indications of an impression that it, will lead to an exchange of views. The fact that it is addressed to the Powers, and not only France, is being stressed. 'The Morning Post says the framers have served up a mess of stale, rejected ingredients. It is an unwholesome dish which persons less fastidious than Poincare would instantly reject. The sum offered is quite inadequate, and the guarantee for its payment exceedingly vague. The only guarantees worth having are those which General Degouotte has seized in the Ruhr, yet the starting point of negotiations, according to the Note, must bo the restoration of tho status quo within the shortest, possible lime. The Post concludes with a plea that France and Britain should seek an agreement regarding tho sum which Germany can reasonably pay. If tho. two Allies wore to conio'together, then Germany, welcoming such excuse, might save her prestige and integrity by instant surrender.

Tho Daily Telegraph asks what is (n bo said <>[ a document which announces almost at the beginning that passive resistance in the Ruhr will bo continued until the lately-invaded areas are evacuated? By this fatal phrase alone, the prospect of the Note leading to a renewal of negotiations lias been destroyed. Tho Note, which as a whole is weak and unpractical, is ruined by tho adoption of a. stiff-necked attitude on the main point. Wo discern no hope whatever of a renewal of negotiations on the basis laid down. The Daily Express says the Note opens tho prospect of a difference from the stalemate position of the past few weeks, and expresses the opinion that it is by no means certain this is Germany's last word in the matter. Th Daily Chronicle remarks that the howls of denunciation with which the Paris press tried to drown the offer, oven before tho text was known, show that hatred and revenge remain stronger motives in France than any sincere desire for payment. At the same time, the paper thinks 1500 millions too small.

BERLIN, May 2. There is practically no comment, the newspapers having apparently decided to postpone any expression of opinion until news of the reception of the Note in Paris and London arrives. Yorwaerts, however, is glad the way has been opened to negotaitions. Tho Deutsche Allgemeine Zeitnng, chief organ of the Stinnes group, says the offer is even beyond Germany's power lo pay; certainly it is the highest. ever made by a vanquished Power. Dr. (Juno, in an address, said the Nolo, was a stop towards negotiation.

REFUSAL TO RENOUNCE PASSIVE RESISTANCE

PROPOSED INTERNATIONAL LOANS.

DEMAND FOR STATUS QUO ANTI

(Australian and N.Z Cable Association..

(Received, Mav 4, 9.50 a.m.) LONDON, .May 3

Tho official text of the Gorman note refuses to renounce jwtssive resistance until the territories occupied beyond the Treaty of Versailles have been evacuated. Notwithstanding Hie events of the last few months, Germany is ready to fulfil all she can for reparations. Every solution, however, must include an elastic factor, as it is impossible to put forward an infallible estimate. Germany cannot raise capital sums out of her own resources, as the trade balance shows no surplus; she therefore stands in need, of a foreign loan and, proposes that Germany's total obligations for deliveries in cash and kind) be fixed! at thirty milliards of gold marks, which will be raised by three loans on the international money market, the first instalment of twenty milliards in July, 1927, five milliards in July, 1929, five milliard's: in July, 1931. Interest at five per cent, ami a sinking fund 1 of one per cent, will to paid after July, 1927.

ff the two later loans cannot be fullyraised within the lime limit, it will bo left to an impartial international commission to decide how the rest is to be raised.

This is the utmost limit that Germany i,-: able to pay, but if others do not share tho opinion the German Government proposes ten .submit the reparations problem to an international commission, as Mi*. Hughes suggested. The Government is prepared to devise smilablc measures in order that the whole German national resources shall participate in guaranteeing the service of loans. It, however, is necessary that the high-handed seizure of pledges ami sanctions should! cease in future. This implies that the stipulations of the Versailles Treaty, refusing economic equality to Germany, should cease. The first essential to the negotiations must bo the restoration, of the status quo ante in the shortest possible time, also the release of German prisoners, while those expelled must he allowed to return to Ruhr. FRANCE WILL PROBABLY REFUSE (Australian and N Z. Cable Association.) (Received Mav 4, 9.15 a.m.) PARIS, May 3. The general tenor of French views is that Franco will probably refuse even to consider the German; Note. Lc Temps declares that Germany, in demanding the evacuation of Ruhr before loans can be raised or payments made, is rejecting one of France's fundamental conditions l . SPEECH BY GERMAN PREMIER, (Australian and N.Z cable Association I (Received May 4, 1.20 a.m.) BERLIN, May 3. Dr. Cuno, in a speech on the Note, emphasises that tho price of peace must bo "one which we could pay and under such conditions as not to infringe our independence, safeguarding us againsl sanctions, which prevent us from paying our reparations obligations." The Government at all hazards, he said, would adhere, to (his policy. .Only by nego fiations face to face could they discover what the other side required as a sufficient guarantee.

FRANCE REJECTS THE OFFER. WOULD MEAN RUIN AND DEFEAT FOR FRANCE. (Australian and N.Z Catile Association.! (Received Mav 4. 11.20 a.m.) PARIS, May 3. The French Cabinet unanimously decided that the German offer was unacceptable. A semi-oflicial statement regarding the German offer says: The French and Belgian Governments are faced with practically no option but intensifying the. exploitation of Ruhr. They consider Germany is claiming remission of a huge debt. She should have offered six times the amount suggested. The offer simply suppresses tho treaty and victory.

Le Matin declares it would represent ruin and defeat for France, without precedent, if there were any thought of taking the offer into consideration. Tho French Cabinet meets to-day. It is expected its reply will amount to a total rejection. The Petit Journal, M. Loueheur's organ, while not condemning and not rejecting, says it is partially insufficient, and partially unacceptable. Tho paper reproaches tho Germans for again lacking psychological sense. Cabinet rejected the offer owing to tho conditions laid down, the absence of guarantees, and insufficiency of the amount offered. M. Poincare confers with Belgium in framing a reply, and deciding whati communication shall be held with the other Allies. '

I BRTTTSIT LABOR PABTY',O VIEW. ' WOULD APPEAL TO LEAGUE OF NATIONS. (Australian and N.Z Cable Association.) (Received Mav '\, 12.10 p.m.) 'LONDON, -May 3. Alter :i meeting of the Labor party in the Commons, regarding Ruhr and the position of affairs in Central Europe, a. statement was issued, requesting an immediate special meeting of the League of Nation to arrange lor the admission of Germany and to proceed to settle conditions of national security in Europe. The Labor party, without committing itself to .all details of the German Note, believes it affords the basis of negotia- ' tions between the Germans and Allied Governments. 'The party urges the British Government to issue a statement to that effect and to promote an immediate conference.