REPORT NOW DENIED

Star (Christchurch), Volume XLIV, Issue 494, 1 July 1932, Page 1

REPORT NOW DENIED

Germany has Not Accepted Reparations Plan. WILL NOT PAY SINGLE MARK. United Press Assn.—By Electric Telegraph—Copyright. LAUSANNE, June 30. The German delegation to the Reparations Conference denies that it has accepted the principle of making j a final payment in lieu of reparations, such payment to be made only when normal conditions are restored in Germany. An earlier report stated that Germany had accepted this offer. The German position is unchanged. She will not pay a single mark more in reparations, but once the slate is wiped j clean, she is willing to contribute like j the others towards the reconstruction j of Europe and the world. Mr MacDonald spent a wearying day j mainly conferring with Captain von j Papen and M. Herriot, emphasising the | importance of the issues at stake. Mr MacDonald insisted on the pS}-cho- ‘ logical importance of France dropping ! the word reparations and the substitution of the phrase ‘‘restoration payments” in the hope of enabling the French and German Governments to face hostile Parliaments with a settlement, but the present difficulty is to devise a scheme whereby France will derive material benefit from the socalled restoration payments. German circles hint that the Reich will subscribe to a restoration pool of which the Bank of International Settlements will be trustee. The amount suggested is £150,000,000, which is about two annuities under the Young-Plan. Berlin telegrams, however, suggest that Germany's subscription is still conditional on the abolition of discrimination against Germany under the Versailles Treaty, which France and other Powers have thus far refused to consider. The committee of seven, under MacDonald’s chairmanship, continued sitting until midnight, discussing a r/00l to assist European reconstrur ,tion, when the delegates adjourned Vo/' partake of beer and sandwiches, /out no solution was found when j/aey reassembled, so they adjourned until morning.