REPARATIONS POLICY.

Star (Christchurch), Issue 16749, 2 June 1922, Page 5

REPARATIONS POLICY.

moderation and RESTRAINT. GERMANY’S EFFORT. By Telegraph—Ptest Association—CopyrisW Australian and N.Z. CaWf Association.LONDON, May 31. Mr Lloyd George made a statement dealing with remration*. He said the Reparations Commif-ysion was not yet able to say what their definite answer would be to the German proposals. Therefore it was difficult for him to enter upon a discussion of the subject. Anything he might say oould hardly be useful at the present moment, and it might easily be harmful, but it might be assumed, that the critical phase presented a lew w’oeks ago ' had passed. There was one fact which had upset the balance of the Reparation Commission, as it had also upset the League of Nations, and that was the absence of America. Continuing, Mr Lloyd George said that the absence of America from the machinery of the Versailles Treaty made it less effectiye, and made it work with less precision. There was no cause for disagreement between France and Britain. He > was glad Germany had made a real effort to meet the requirements of the Reparations Commission. His conviction was that safety for France oould be found only in the practice of what was provided for in the league of Nations Covenant. AVas Britain committed in any way to join in an invasion or any further occupation of German territory? he asked. What ground of objection could there be to the suggestion of an international loan as a means of enabling Germany to pay a large portion of the reparation demands? He believed Germany was honestly doing her best, in the face of very considerable political difficulties, and consequently she was entitled to every consideration and respect. A policy of non-fulfilment by Germany would be a policy of disaster for her. It was not a question of Franee acting alone if there was a defiance of tho Treaty of Versailles. Great Britain was among the signatories, and was committed to the treaty. If a Government did come in Germany which would resist the treaty, it was not France that would be left alone to exact the conditions. Britain would act also. “ We have stood for a policy of moderation and restraint” continued Mr Lloyd George. “ and thereby we have rendered ourselves liable to a good deal of misrepresentation in France. We shall still stand for moderation as well as for a policy of fulfilment. Any isolated action by our Ally will be disastrous to the Entente. A proposal has been made outside that Great Britain should remit the whole of the £3.000.000.000 of debts owing her by other countries without receiving a. remission of the £1,000.000,000 which Great Britain owes. No Government could possibly contemplate such a thing, although we are perfectly willing to enter an international discussion with a view "to obliterating the war debts owing to Britain, provided we receive some benefit in regard to the debts which Britain owes. COMMISSION’S REPLY. OFFER SATISFACTORY. PARIS, June 1. The Reparation Commission, replying t-o Germany, while regretting that- Germany did not begin such steps earlier, says that the action taken and promised constitutes a serious effort on Germany’s part to meet the Commission's requirement. Therefore then confirm the provisional moratorium granted on March 21. The Commission, however, points out that this postponement is liable to cancellation at any time, if the Commission is satisfied that Germany has failed to carry out the conditions laid down. The Commission reserves the right to cancel the postpone • ment if, through failure to raise an international loan. Germany fails to carry through her promised arrangements regarding the floating debt, or her failure to find other approved arrangements for dealing with her budget deficits and floating debts. _ THE GERMAN NOTE. BERLIN, June 1. The Press generally adversely criticises the German Reparation Note, and it is already suggested that a political crisis will arise in that connection when the Reichstag resumes after the Whitsuntide recess. To-day, the People’s Party supported the Junkers in a no confidence motion, which the Reichstag nevertheless defeated by a substantial majority. The “ Deutsche Allgemeine Zeitung,” Herr Stinnes’s organ, declares that tho Note is the most perilous and dishonouring to Germany ever issued.