GERMANY WILL NOT PAY.

Star (Christchurch), Issue 16927, 29 December 1922, Page 5

GERMANY WILL NOT PAY.

DEFAULT IN REPARATIONS. By Telegraph- Press Association—-Copyright Australian and x.Z. came Association. I .UN DON . Decern ber 2. . ’I he Paris cor respondent ol tho “Daily 'lelegrapli ' attaches importance to tne decision i.y the- initiations Commission alone dissenting;, to declare Germany a defaulter in respect to the timber alia telegraph poles ordered by France under the agreement ler reparation* in kind. The correspondent points out that the effect ol the decision will be the notification oi Germany’s voluntary default to the Allied Dowers, which, on the eve of the meeting of Frenmvrs. will .'serve as a pretext, d any other Power wishes to take exception to Germany’s action.- The amount involved is only £*30.000, but the majority of the Commission arc seizing the opportunity to demonstrate Germany's determination not to pay. “Le Temps," declaring that tho German wealthy classes iciused to contribute to the reparations, points out that while the. German tax on coal for the current financial year ought to have realised £d.iXM), 000.000, onh £B-50.000.000 was collected for the first seven months of the year. "While the for.-ed loan should havi' provided £7.0,000.000, it only brought in £200,000. and cannot possibly result in more than £0.000,000 being raised The German Government is incapable of making pay those who ought to pay must. France cannot, therefore, trust to anything but realities. While these

are being achieved, she is forced to agree to a moratorium, and can onlv choose between accepting ruin or pledges. France will, as a matter of f act, a ccep t id edges. M. Poincare, replying to questions in the Senate, stated that the Government, on December 22. asked -the Reparations Commission to state whether Germany had defaulted in her deliveries in kind. The Commission, by a majority, agreed to the affirmative, al-o that the Allies could take measures in concert or individually. The question of individual or collective action would probably form part rf the programme for the January Conference of I*TCliiiei s. A BAD OMEN. PARIS. December 27. The Reparations Commission’*: lack ■»t unanimity in the declaration respecting Germany’s default is regarded as a ha I omen in regard to the Paris Confer ence. It is stated that if the Allies refuse, to endorse*' the French proposals France will act alone. It is thought by some that M. Poincare is rapidl*. heading for a position similar to M Briand’s when the Cannes Conference opened. It is considered that, he itiring of the struggle, ami will retire in the event of failure, if pressed. MUSSOLINI'S ATTITUDE. ROME. December 27. Government papers state tlmt Sign .r Mussolini will nor. go to Paris, own., to the Allies’ failure to agree on i decisive programme. Signor Mussolin holds that the reparations can only b« reduced if the Allies cancel the debt* of one another. Since the London Con i fere net* Britain has modified her ricr i of the terms on which there debts migin j ho cancelled to such an extent thai 1 the whole scheme seems to he ship | wrecked. Therefore. Signor Mussolin } considers that the discussion oi tin moratorium proposal is a waste i time LONDON. December 27. Tlie “ Daily Telegraph’s ’’ Rome cor respondent is of opinion that Signo Mussolini’s decision not to attend ma l he designed to obtain Britain's posi live promise to cancel lie* claims oi Italy. GERMAN PROPOSALS. BERLIN. December 27. Cabinet proposes to inform the A 1 lies that if Germany’s responsibility are definitely fixed, industrialists an merchants will guarantee a loan carry ing the moratorium over a number o years. Foreign loans will also be raisei and devoted to the payment of the re parations to France and Belgium.