REPARATIONS

Southland Times, Issue 19590, 11 August 1922, Page 5

REPARATIONS

THE LONDON CONFERENCE BREAKDOWN IMMINENT EXPERTS AGAINST M. POINCARE. (By Telegraph—Press Assn.—Copyright.) (Australian and New Zealand Cable Assn). LONDON, August 9. A grave situation has developed at the Conference. There are indications that it will terminate to-morrow owing to the strong line which the French are taking against the policy of the rest of the Allies. It is understood that the majority opinion of the committee of experts is against the French proposal for the establishment of a Customs barrier and the imposition of taxation in the occupied area. The proposal to seize the mines and forests is also rejected, but the committee will be invited io consider a system of guarantees ensuring a- supply of coal and wood for the Allies. The proposal to ask Germany to agree to a share in industrial concerns being given to the Allies is likewise rejected. The committee generally favoured Signor SchanzePs view that there is a contradiction between granting a moratorium and taking German property. It was also held that these steps were unnecessary in view of the guarantees lately imposed by the Committee on Guarantees. It was felt necessary not merely to look at some of these matters from the financial standpoint, but to take account of their political and moral effects. The French Minister of Finance did not attend the afternoon meeting. lhe Daily Mail says the diplomatic conference is faced by three possibilities—firstly, a comprehensive settlement; secondly, a deadlock or breakdown; thirdly, a compromise sufficient to carry discussions past the date for the next German payment on August 15 to a later new conference. The first is impossible, and the third remains possible if the experts and Prime Ministers are ready to accept each of M. Poincare’s schemes t-o save the author’s face. This is extremely doubtful. Whether ir is desirable is even more questionable. M. Poincare's scheme is not constructional but disinlegrational. It concentrates attention on sections when all concentration should be on reconstruction. It is a reversion to M. Millerand’s Spa proposal of July, 1920. M. Poincare’s proposals, additional to those cabled yesterday, are that taxes leviable in the occupied area be paid direct to the Allies; cession to the Allies of German State pWiwrty, instancing forests and mines; and the Allies to take a 60 per cent, share of dye factories profits and participate in other industries. The Daily Chronicle comments that it is reported from a French source that the committee estimated that M. Poincare’s scheme was likelj* to produce three to four hundred million gold marks, which is small in comparison to Germany’s obligations. The British representative’s opinion is that it would yield but poorly compared with the likelihood of ultimately disorganising Germany’s economic life. TAX ON GERMAN EXPORTS. MR LLOYD GEORGE AND M. POINCARE POINTS OF AGREEMENT. LONDON, August 9. It is learned from a French source that the committee of experts has decided to recommend that a 26 per cent, tax on German exports be collected directly by the Reparations Commission, instead of Germany paying an equivalent round sum as now. A French source states that Mr Lloyd George at a meeting with M. Poincare and M. Theunis, agreed to the following French proposals: (1» The Reparations Commission to directly collect 26 per cent, on sums received by Germany in foreign currency, or on German exports which are estimated to yield 1250 million gold m-ireks. (2) Seizure of German Customs receipts estimated at three hundred million gold marks. (3) Control of State mines in the Ruhr and forests on the left bank of the Rhine, but the British Government is strenuously opposing the proposal to re-establish the Rhine Customs barrier and establish a Customs barrier round the Ruhr in connection with which M. Poincare is unbending. THE SITUATION CRITICAL, LITTLE PROSPECT OF AGREEMENT. BRITISH CABINET SUMMONED. LONDON, August 9. (Received August 10, 5.5p.m.) The latest reports indicate that the Allied Conference situation is critical an.l there is little prospect of agreement. A special meeting of the Cabinet has been summoned for to-morrow to consider the British policy, when grave decisions may have to be made owing to the French views differing from those of the other Allies. Mr Lloyd George, M. Poincare, and M. Theunis had a three hours' conversation to-day discussing the possibilities. Unfortunately little progress was made. THE EXPERTS’ REPORT. ENTIRELY HOSTILE TO FRENCH PROPOSALS. LONDON. August 9. (Received August 10, 8.45 p.m.) The presentation late to-night of the ex perts’ report which in entirely hostile to M. Poincare’s proposals, brought the conference to a crisis necessitating the hasty calling of a Cabinet meeting. This will l>e held on Thursday afternoon. There will be no full meeting of the Conference to-morrow. It will meet on Friday instead after the Cabinet has decided upon its course of action. The experts’ report deals with M. Poincare’s proposals seriatim with a view to deciding what the cash proposals will produce. This was the only point of view considered. Regarding the proposal that the Allies should establish control of coal mines and forests, the Italian, Japanese, and British exerts agreed that it would produce no cash and )>e useful only as a sanction. The Belgians, however, supported France on this proposal. Regarding the suggested e-stablislunem of a Customs line between the occupied area and the rest of Germany, and also around the Ruhr, all the Allies except France agreed that it would be better to take over - the present normal Customs arrangements at the present frontiers than to cut up Germany by a fresh Customs line. Regarding the proposal that the Allies should take over a 60 per cent, share of the factories on the left bank of the Rhine, all the Allies except France opposed the suggestion on the ground that the only manner of talcing over a share would be io compel the German- Government to buyout the present proprietors and hand their shares to the Allies. 'Hie German Government could only do that by printing fresh paper money, the result of which would be to aggravate the currency situation. The experts felt that there could be no real moratorium in remitting the present forms of payment by Germany if thereby they simply imposed other equally onerous forms of payment. The Daily Telegraph {joints out that the jiosiu.n at the Conference was so grave on Tuesday night that M. Theunis had successive interviews with Mr Lloyd George and M. Poincare until 1.30 in the morning in an attempt at mediation. After all the delegates had had luncheon together it was announced that the experts would deliberate again in the evening. M. Poincare seemed determined to return to Paris with some definite .scheme relating to the Ruhr in his pocket, as the French Parliament had. expected and demanded. M. Poincare pointed out that France could accept some pledges involving {>aper marks payments as she could use the same for buying German goods.

Mr Lloyd George to-day made it abundantly plain that- he was not prepared in the present condition of Europe to embark on any scheme which would involve sending Allied officials to Germany with the risk of causing civil disturbances and probably necessitating the use of military force. FRANCE BEHIND M. POINCARE. BITTER PRESS COMMENTS. PARIS, August 9. (Received August. IG, 5.5 p.m.) The newspapers assert that all France is behind M. Poincare, and express dissatisfaction with the London developments. The Figaro .says: “France does hot want to pay for Britain’s mistakes or the German’s crimes. Mr Lloyd George thinks he is protecting the peace of Europe against us, but in reality he is protecting Germany, not peace.” Eclair remarks that the Allies show towards Germany a scrupulousness of consideration which they deny to their old ally, France. RUPTURE EXPECTED AT PARIS. THE CONSEQUENCES. LONDON, August 10. (Received August 11, 12.45 pin.) A Daily Express Paris message stales that the gloomy despatches of French correspondents accompanying M. Poincare indicate the opinion that a rupture between France and her Allies is unavoidable. It is believed that if this occurs M. Poincare is likely to secure a Parliamentary vote of confidence and thereafter instantly execute a scheme of his own devising. Liberte suggests that if France acts alone she will get about £24,009,000 from Customs, though Germany will undoubtedly take advantage of France’s isolation and French and Belgian francs and Italian lira will all depreciate. GIBES AT MR LLOYD GEORGE ALLEGED MISQUOTATION PARIS, August 9. August 10, 11.30 p.m.' The Matin and other newspapers charge Mr Lloyd George with misquoting the' figures of the French war costs at the initial session of the Conference. They declare that he omitted 140 milliards of francs by missing a page of the Bankers Trust Company’s figures, thus omitting tne cost of the German invasion. The papers sar ca?tically refer to the awkward position of the British Government through being found out in such a colossal error. GERMAN COMMENT. ATTACKS ON FRANCE. BERLIN, August 9. Comment concerning the speeches at the Conference is directed against M. Poincare. It is universally believed that France does not want reparation but merely a ruined and impotent Germany. The legend of British military weakness and the fear of French aeroplanes is generally accepted. Germania protests that Germany was always willing to reconstruct French devastated regions, but French speculators and reparation profiteers stood in the way. ) LORD GREY ON THE ISSUES. BRITAIN’S CHOICE. LONDON, August 9. Viscount Grey, speaking at Oxford, said whether Europe would be restored to prosperity depended largely on the result of the London Conference. There were two things they must do—they must pay the American debt and keep it an entirely separate question from Allied debts and they must use their credit position in Europe in the most generous way to ensue a settlement. The Balfour note did not keep the questions separate. It conveyed the impression that they would adopt an attitude of contingent generosity. The Government had a chance to do a big thing, and it had chosen to do little things. The note was the cause of a good deal of political friction and made the prospect of a settlement more remote. It was essential that German reparations should be reduced to a practical amount. France had experienced the full agony of war, but the complete collapse of Europe would be the greatest sacrifice France could make. Speaking generally the policy of splendid isolation was no longer possible. Viscount Grey added that there were four ; essentials to a European settlement: — (1) Reduction of reparations to a manageable and practicable amount. (2) The granting of a moratorium to Germany of adequate duration. (3) What was pbssib.e must be done to put Germany on her fee*. (4) Provided Germany after the re-arrange-ment fulfilled her treaty obligations she should be admitted to the League of Nations.