RUHR SITUATION.

Poverty Bay Herald, Volume XLIX, Issue 16211, 23 August 1923, Page 3

RUHR SITUATION.

THE FRENCH REPLY

RESOLUTION OF THE LEAGUE

[Elec. Teh Copyright—Unued Press Assn.i i:\ustralian and is.£. cable As'a'jciaiiuu.;

LONDON, Aug. 21

The French reply to tho British Note was handed to the British Embassy at Paris to-day. The latter sent it, to London by special courier, and a copy was also sent to Lord Curzon, who is holidaymaking ini France, '.the reply consists of 50 pages, 32 of which are. occupied by seriatim replies to the points raised in the British Note. Contrary to expectation, the French Foreign Office did not issue either a. reply or a .summary thereof to the; press. The Daily Express' Paris correspondent states that M. Poin-t-are carries the history of the question hack to the conference of 1916, when the Allies recognised France's and Belgium's rights of priority in reparations. He suggests that by adoption of £2.5C0,CCO.OCO as tho total and using the iSpa formula for the division of same, Britain would obtain eleven out of 14.2 milliards of gold marks she is now demanding. The Central News Agency says the reply suggests tho only urgent question is to discover a means whereby Germany can he made to pay. If the Allies can arrive at some compromies regarding tho steps to be taken jointly lo get money from Germany, the conflict over Ruhr would speedily be ended; in other words, M. Poincare hints that if only the Allies would act in concert. French pressure in Ruhr would immediately he lightened: LONDON". Aug. 22.

The executive committee of tho League of Nations Union adopted a resolution that in view of the threatened disturbance of international peace arising from the' continued occupation of Ruhr' by France and Belgium, the Union xirgo the British Government at or before the League Assembly meeting on September—-(1) to exercise its declared friendly' right wider article 11 to bring to the notice) of the. League tho present relations between France, Belgium and Germany; (2) to propose that representatives of Germany be invited to participate; in discussions on matters directly affecting her under article 17; (3) to endeavor to reach a settlement under the League's auspices, if possible, with the assistanco of the United States, of the whole problem of reparations and inter-Allied debts security, out of which tho present strained situation has. arisen.

GERMAN FINANCE

DESPERATE DEVICES

(Australian and N.Z. Cable Association LONDON, Aug. 21.

■The Morning Post's Berlin correspondent states that the German Cabinet sat for live hours and adopted desperate devices aiming at preventing the German finances from reaching the bottom of tho abyss.

An indication of Cabinet's probable drastic steps is furnished by Vorwaerts, which states that when the nation is in profound distress this must be shared equally by all classes. Possessing classes must not be permitted to amass wealth in safes while Workers are in a state of misery. The Reich must obtain largo sums of foreign currencies, even if iti lias to seize private stocks. Tho Reich will probably he compelled to have recourse to direct confiscation, and if forced to this step it will have the, nation behind it. Certainly it will coin mand the effective support of the Workmen's and Employees' Council. Tin; Central News' Berlin correspondent slates that Herr Havenstein, president of tho Reichsbank, has resigned. For some days ho has been practically a prisoner in the Reichsbank.

CAPACITY TO PAY

M. POINCARE AND GERMANY'S OBLIGATIONS.

LONDON, Aug. 21

The Morning Post says: "It may 1» inferred that M. Poincaro will assent in principle to a mortorium for cash payments, but will insist on the resumption of payments in kind, following tho immediate cessation of passive resistance. It is evident that M. Poiricare has not changed his mind regarding Germany's capacity to pay. Ho opposes inquiry by an international committee, but urges that the Reparations Commission should bo encouraged in its work of examining Germany's ability to meet her obligations.

The Daily Telegraph says that M. Poiricare points out that if passive resistance ceased, the need for imposing drastic military protection for French engineers and other experts would disappear, so important modifications might be. effected in the occupational regime.

NEW FRENCH NOTE

THE DEBT PROBLEM

CESSATION OF PASSIVE RESIST-

ANCP.

Australian unit N.Z rnbl<> Association

(Received At-fftlst 23. 12.20 p.m.) PARIS, August 22. Tho French Note has been issued. It asks the Allies to credit Franc* with twenty-six milliard gold marks in A and B bonds; also to credit her with C bonds to an amount that will be sufficient under tho head of Allied debts.

It declares the Ruhr occupation fully justified by the treaty and the Allies' declarations, notably the Spa protocol in Julv. 1920.

Franco claims that a cessation of passive resistance is an essential condition precedent to further conversations on occupation. Once passive resistance ceases the occupation will be modified. It definitely suggests that if resistance ceases France wit' undertake to guarantee the progressive evacuation of Ruhr in proportion as Germany makes payments, under conditions altogether different from those now obtaining. Franco does not intend remaining in Ruhr longer than necessary. She has no aims of a. political or 'annexationist character. France recognises her debts, but is forced to declare that she tan only pay after she has received what is due from Germany; also France, in addition to twenty-six milliard gold marks, will claim the amount the Allies claim from her. Thus, the less the Allies' claim from her, tho smaller will be the amount Germany will have to pay. This method will not necessitate revision of the treaty, whefeas the British suggestions, if carried into effect, would destroy several clauses.

1-ranee considers it ought to be easy Io come to an understanding for the .earliest possible settlement of that part of the German debt corresponding with the cost of reconstruction of the devastated regions, leaving for later considerations the second part, also the question of war debts.