GERMAN REPARATION

Waikato Times, Volume 94, Issue 14603, 2 March 1921, Page 5

GERMAN REPARATION

HEBE SIMON’S PBOPOSALS: PAR’S TERMS IMPOSSIBLE. MR LLOYD OBORGB’B REPLY'. (Australian and N.Z. Cable Assn.) Received March 2, 9 a.m. LONDON, March 1. At the Conference, Mr Lloyd George Invited Herr Simons to speak. The latter said that Germany was unahlo to accept the Paris proposals in their present form. This was due to the fundamental difficulty of raising industry effectively to the maximum in order to pay the amount, while, on the other hand, preventing German competition being a danger to other nations. The German .. Government, taking the Paris proposals as a starting point, had arrived at a very different conclusion. The Paris proposals imposed annuities of six milliards. This must be paid by surplus exports, and experts agreed that In order to pay these annuities German exports would require to be four times greater than the annuities. This ratio was chiefly due to the necessity for importing raw materials and food. .Germany’s burden had been Increased through the depri- • vation of territory from which she previously derived these commodities, and forcing them up four-fold would constitute a menace to the rest of the , world. Referring to the export duty, he said this must either be paid for by the consumers, if they would accept them at such prices, or paid for by German industry, which would thereby be weakenel in its power to compete, resulting in a. decline in exports. Germany was now able to export, owing to favourable ex*, change and the lower cost of production, but these conditions, however, would probably not be lasting.

Herr Simons further stated that Ger- '* many was not in a position to* accept the Paris proposals, whicli were based on too transient a conception of German industry. Fifty milliard gold marks-. - was all that Germany was able to pay. Germany estimated that she had already paid twenty milliards, and suggested tl at the remaining thirty milliards should be provided by an international loan for eight milliards, the remaining twentyfive milliards to be capitalised, Germany paying the interest and sinking fund. Herr Simons remarked that present conditions really represented a state of sickness of German industry, caused by the condition of the currency. It was difficult for Germany to make definite, instead of indefinite, propositions. The German Government thought the pay--ments should not be too heavy’ or tended over too long a period, as the German people feared to see their 'children and grandchildren overburdened. The Government thought it best to, fix the total capital sum payable, and they would then pay Interest and sinking fund in the usual way. Herr Simons said if the Paris proposals were dis- . counted at 8 per cent on the present value It would be fifty milliard gold marks. There was a dispute between the German and Allied experts o.ver tho ■ amount already paid in reparation. Tha Germans estimated it at twenty milliards, thus reducing the amount to thirty milliards, and this, according to her experts, was 4he utmost Germany could pay. -They will agree to a joint * commission to value the reparations already paid,,and suggested that in order to make German obligations immediately effective they should issue an international loan as soon as possible on which Germany would find interest and sinking fund. . Mr Lloyd George intimated that the Allies could not discuss any alternative to the Paris proposals.