GERMANS’ ABILITY TO PAY

Taranaki Daily News, 4 January 1929, Page 7

GERMANS’ ABILITY TO PAY

REPORT AROUSES PROTEST

CHORUS OF PRESS DISSENT

x CHANCE OF RELIEF RUINED’

By Telegraph—Tress Assn. —Copyright. Australian Press Association. Berlin, Jan. 2.

A chorus of resentful criticism appears in the Press of all the cities concerning Mr. Parker Gilbert’s report, which is described as unjustifiedly optimistic, giving a false impression of Germany’s ability to pay reparations. A Foreign Office official expressed the opinion that the report would be accepted as “Bible” by the reparation experts, and thus ruin Germany’s chances, of obtaining a reduction in reparations. Mr. Gilbert had ignored the fact that the Dawes plan had worked smoothly only because Germany had borrowed abroad, thus increasingly mortgaging, the national wealth. He likewise had ignored the fact that the plan rested on Germany’s maintaining a surplus of exports over imports, yet there was at present an estimated adverse balance of £125,000,000.

In "striking contrast with the German President’s view is that of the AgentGeneral for Reparation Payments, Mr. Parker Gilbert, who, in his eagerly-awaited report on reparation, says there is no question, in the light of practical experience, concerning the ability, of Germany to provide the full amount of her standard contribution under the .Dawes Plan.

Mr. Gilbert lays stress on the great productivity of the revenues, and urges that Germany should spend less on herself. The time is approaching when more vigorous measures must be taken to keep Germany’s expenditure within the limits available from her revenues.

Undoubtedly there are reserve forces of taxation still available, to which recourse could be had if necessary. The report concludes by advocating the definite fixing, of Germany’s reparation obligations, in order to remove an element of uncertainty from the economic life of all the countries interested.

APPOINTMENT OF EXPERTS.

TWO BRITISH REPRESENTATIVES.

British Official Wireless. Rugby, Jan. 1.

The Chancellor of the Exchequer announces that the Government has nomin* ated Sir Josiah Stamp and Lord Revelstoke as British members of the committee of experts to frame proposals for the settlement of the reparations ■* problem. There will also be two deputy members, whose names will be announced latei. Sir Josiah Stamp is a well-known economist. He was a British representative on the committee, under the presidency of General Dawes, which drew up the present scheme of reparations in 1924.

Lord Revelstcke is a director of the Bank of England and a partner in the banking firm of Baring Brothers.