FIVE POWERS AGREE.

Wairarapa Age, 5 July 1932, Page 5

FIVE POWERS AGREE.

PROPOSED FINAL PAYMENT BY GERMANY.

TWO HUNDRED MILLIONS TO COMMON FUND.

SETTLEMENT EXPECTED.

LAUSANNE, July 3. Italy, Belgium, ana Japan have accepted the Anglo-French agreement on the terms to be submitted to Germany for the final reparations settlement. Dr. von Papen’s reply is expected to-day. The proposed final payment of £200,000,000 will be earmarked not as reparations, but as contributions to a common fund for European reconstiuction.

While Germany is expected to protest that the figure is too high, it is believed she will ultimately accept as the alternative would be a breakdown of the Conference without agreement, whereupon the suspended reparations payments would become immediately due. LABOUR AT LAUSANNE. MR. RAMSAY MACDONALD’S UNTIRING EFFORTS. LAUSANNE, July 3. Disregarding his Sabbatarian principles and doctors’ advice, Mr. Ramsay MacDonald spent Sunday in vigorous attempts to secure a settlement. It is believed that German objections to the Five-Power Plan are narrowed to three points:— (1) The amount of payment. (2) The conditions of the issue of the bonds. (3) The camouflaged safeguarding clause.

The Germans also want the cancellation of references to war guilt in the Versailles Treaty, arguing that now reparations are dead it is unreasonable to maintain a stigma, the removal of which would make the settlement almost palatable to the Germans. The demands are expected to arouse opposition, but possibly they are advanced for bargaining purposes. The Powers are now discussing the Gjerman reply.

GERMANY CONSIDERING. CONDITIONS OF PROPOSED PAYMENT. (Received Monday, 9.20 p.m.) LAUSANNE!, July 4. Intensive negotiations during the week-end failed to yield a settlement. Germany is now considering 200 millions as the final sum of payment by means of Government bonds, of which the redemption is spread over a number of years, but only begins when Germany’s economic position permits. She will then pay £22,500,000 per annum until the amount declared has been paid. Pending the redemption of the bonds Germany is to be asked to deposit industrial and railway bonds, bearing interest, in the Bank of International Settlements, the value of these being £210,000,000. French experts are now considering Germany’s counter-proposals, which include a a moratorium for three years. DISCONTENT IN FRANCE. SUGGESTION THAT HERRIOT MAY RESIGN. (Received Monday, 9.20 p.m.) PARIS, July 4. There is little doubt that the revolt of the Radicals against M. Herriot’s Economy Bill is really associated with carefully concealed discontent at the Premier’s reparations and disarmament policy. Faced with the possibility of resignation, M. Herriot has decided not to return to Lausanne before Wednesday, so a decision is impossible earlier.