DEBTS OF THE ALLIES

Wanganui Chronicle, Volume 74, Issue 133, 8 June 1931, Page 7

DEBTS OF THE ALLIES

VITAL DECISIONS COMING? RE-OPENING OF WHOLE QUESTION FORESHADOWED DISARMAMENT PROBLEM WILL ALSO BE INCLUDED AMERICAN LEADER IN FAVOUR OF REVISION | By Telegraph—Press Ascociation—Copyright.] Received June 7, 7.30 p.m. NEW YORK, June 6. The New York Times’ Washington correspondent telegraphs that Germany’s efforts to suspend reparations is considered to foreshadow a move to re-open the entire question of inter allied debts, -with which will probably be linked disarmament questions. The correspondent draws attention to the fact that both Senators Stimson and Mellon plan to spend the summer holidays in Europe, promising important conversations with England and France. The despatch states that. Senator Borah favours a revision of reparations, he having declared to-day: “Revision seems to me to be an expedient which is economically and fundamentally just. There is nothing to be gained by anybody by forcing Germany into a complete economic breakdown. No nation ought to want to grind down into unspeakable misery the working people of Germany, and there is where the great weight of this burden falls.” Senator Borah added that increased armaments were a contributing cause of European depression, making it impossible for Germany to pay.

CORDIAL RECEPTION I THE GERMAN MINISTERS i DINNER AT FOREIGN OFFICE ' [British Official V/ireless.j RUGBY, June 5. j Dr Bruening and Dr Uuitius had t cordial reception on their arrival in England to-day. The liner Hamburg, ji which they travelled from Germany, was met ia the forenoon by the destroyer Wineheste’f off the Isle of Wight. As the German Ambassador boarded the Hamburg to greet the visitors the liner’s band played the British National Anthem. A few minutes later the party went on board the ’Winchester to the Strains of the German National Anthem. On arrival at Southampton the visitors were welcomed by the Mayor and walked through the lines of the policeguard to the special train which carried them to London. The Prime Minister, accompanied by the Foreign bccretary awaited their arrival at Waterloo Station. They drove to the Cailton Hotel, their headquarters during their stay. Both at the station and at the hotel they were cheered by a gathering of the public, which included many Germans. Later they spent some hours sightseeing in the City and the West End of Lond in. To-night Dr Bruening and Dr Curtins were the guests of the Prime Minister at y dinner at the Foreign Office. NO SET PROGRAMME Dr Bruening, on arrival at Southampton, said: “We have no definite pro gramme. We intend to have a friendly talk on all matters of common interest. ' ’ He denied the Berlin report suggesting that Germany was considering suspension of the payment of interest on foreign loans, declaring that Germany would meet all such obligations. GERMAN REVENUE FROM DEFICIT TO SURPLUS Received June 7, GJ 5 p.m. BERLIN, June G. The President, -Marshal von Hinden finrg, has signed new financial decrees which, it is expected, will yield £90,000,000, and turn a deficit of £62,000,000 into a surplus of £28,000,000.

FINANCIAL DECREES THE BURDEN WIDE-SPREAD Received June 7, 8.30 p.m. BERLIN, June 6. j Practically every German is affected [by the financial decrees. The pensions ; of 660,000 war invalids arc to be reduced by 10 per cent, and an even greater I number of widows and orphans arc to •be similarly reduced. Two-hundred . thousand will be added to the present army of workless who receive no benefit of any description from the Government. All taxpayers will be subject to the new income tax. . On the day of the arrival in London . of the German Chancellor, Dr. Bruening, and the Foreign Minister, Dr. Curtius, a manifesto will be issued which . is generally interpreted as being the first move toward th reduction or suspension of reparation payments. The British United Press says the publication is intended to excite British and world sympathy. Germany will show her ruthless economies in enforcing an attempt tu avert a financial collapse. The manifesto outlines her drastic economies, amounting to £15,000,000, . the increased taxation amounting to £36,000,01)0, and the reduction in rail waymen’s wages of £4,000,000. A report from Berlin on May 26 stat- . cd that the Chancellor and the Foreign I Minister, when they visited the British . Prime Minister, Mr MacDonald, at ; Chequers on June 6, intended to press for a reduction ip reparation payments. , Germany now expectv a delicit of . £50,000,000 at the end of the curient financial year. Dr. Bruening’s Cabinet in November evolved an “economic and financial plan’’ which was before the Reichstag in November It was designed to cover the estimated deficit in the Budget, and ■ to assure equilibrium for three years, by far-reaching financial reforms and ' drastic economies. At the end of the ■ Budget year the revenue was expected to be short of the estimates by between 450,000 00b and 600,000,000 marks (the mark is about Is), and unemployment i relief would demand an extra 300,000,- ' 000 marks, leaving a deficit of up tu 900,000,000 marks. The salaries of the President, Ministers and members of the Reichstag were to be reduced by 20 per eent., and of officials receiving mure than £75 a year by 6 per cent. Extra taxes were also to be impose J. In an interview in October with a correspondent of a French newspaper, La Volonte, Dr. Bruening said the Ger man Government did not envisage a revision of the Young Plan, nor intend to seek a moratorium. But if the eeonI omie crisis continued and the financial I plan did not succeed—and it went to I the limit—he could not predict what might happen.