DEMANDS ON GERMANY.

Star (Christchurch), Issue 16416, 3 May 1921, Page 8

DEMANDS ON GERMANY.

SUPREME COUNCIL FIAT.

Australian and N.Z. Cable Association • Telegraph—Press Association —Copyright. (Received May 3,2 p.m.) LONDON, May 2. The Supreme Council f.afc until late in the evening without, completing details oi' the proposals to Germany. Substantial agreement was arrived at> on the principle, but there was lengthy discussion on the formula for presenta-

tion to Germany. Naval experts have been summoned to meet the Council to-morrow. The Australian Press Association learns that Germany is required to acknowledge the Reparations Commission’s bill by the issue of £6 6G0,000.000 worth of bonds at 5 per cent. These .Solids will be issued over varying periods. Germany is required to pay £100,000,000 annually, rvlus 25 per cent on her exports. The first issue of bonds is to be made immediately, and the second issue in November. Presumably the number issned will be such that the annuitv and exports’ tax will meet the interest charge. "When the annuity and tax exceed the interest required then'' further bonds must bo issued. The Reparations Commission may require the issue of bonds from time to time in accordance with Germany’s ability to pay interest. Assuming that the exports* tax yields £50.000.000 annually Germany must issue bonds to the value of £3.000.000 in order to guarantee the payment of interest. Certain German revenues, such as Customs, must he appropriated towards the payment of annuities. . A point still to be arranged is a sinking fund for the liquidation o e the bopds. Meanwhile the necessary military measures will be initiated, in -he event of Germany's refusal of the terras.