BRITAIN AND FRANCE

Southland Times, Issue 19294, 12 July 1924, Page 5

BRITAIN AND FRANCE

THE TWO PREMIERS MEET SUCCESSFUL CONVERSATIONS CLEARING THE AIR.. (By Telegraph—Press Assn.—Copyright.) (Australian and N.Z. Cable Association.) LONDON, July 10. (Received July 11, 7.5 p.m.) Mr Ramsay MacDonald, after his return to-day from his visit to Paris, made an important statement in the House of Commons regarding his conversations with M. Heriot (the French Premier). “TO REMOVE MISUNDERSTANDINGS.” The British Prime Minister said that he went to Paris to try and remove an unfortunate situation which had arisen there and which threatened to destroy the work done to arrange the inter-Allied Conference to be held in London on July 16. The Government was of the opinion that a supreme effort should be made to put the Experts’ Report into operation without delay. French opinion was unwilling to allow the Experts’ Report to be regarded as a substitute for the Treaty of Versailles but was willing to accept it as a new and better way of dealing with the Reparations. On the other hand, the essence of the foundation of the Experts’ Report was the raising of a loan of £40,000,000, which would be impossible unless the would-be investors were assured that their investments would not be destroyed by political or military action on the part of the Allied or German Governments. Investors would not be forthcoming so long as the political and economic security which the German State, as a going concern, offered investors, could be destroyed by an action similar to that which occurred last year. The Government, therefore, agreed, firstly: to try and add to the Reparations’ Commission when it was dealing with defalcation under the Experts’ Report, an American member who would care for the interests of the investors, or, failing that, to use the services of the American Reparation Agent-General. The British Government suggested that this gentleman should arbitrate in the event of failure to get a unanimous decision of the Commission. The French Government wished time to consider this and to leave the final decision to the London Conference. The British Government finally agreed to this and meanwhile would consult financial opinion. Unless this was settled to the satisfaction of investors, no loan would be forthcoming. The French Government further desired to associate the question of inter-Allied debts with the Experts’ Report, but the British Government was unable to agree to this. NOT TO DRAG OUT INDEFINITELY. Mr MacDonald added that he warned M. Herriot that the British Government could not allow this matter to drag out indefinitely and he proposed to' ask the Treasury to take up the matter where it was left by the Note by the Marquess Curzon of August last. Further, he suggested that the French Treasury officials should come to London for a preliminary discussion of the question with the British officials. It was agreed that this should be done and in negotiating the settlement, account would be taken of all considerations. The Premier added that the French Government desired to keep the question of national security alive. The British Government made it definitely clear that no proposal in the nature of a military pact could be entertained, but repeated its desire to continue the conversations on this subject, especially as regards making arrangements through the League of Nations, disarmament c-nferences and other acceptable means.