WAR REPARATIONS.

Waikato Times, Volume 105, Issue 17704, 7 May 1929, Page 7

WAR REPARATIONS.

AMERICAN COMPROMISE. A TENTATIVE ACCEPTANCE. WHAT GERMANY SHOULD PAY. fßy Telegraph—Prrss Assn. —Copyright.) (Australian Press Ar-soclatlon.) LONDON, May 5. A message from Paris says the terms of the compromise suggested by Mr Owen D. Young, chief American delegate to the conference of the Committee of Experts on Reparation, have not yet been published. It. is understood, however, that Mr Young proposes that Germany shall pay £103,000,000 a year for 37 years, which, with a further sum furnished by the new International Bank, would mean a total capitalised sum of £1,800,000,000, compared with the Allies’ demand of £1,950,000,000. The Paris correspondent of the Financial Times says Mr Young proposes that Germany shall pay 58 annuities, commencing with £85,000,000 and rising to a maximum of £122,500,000. but after the 37th annuity there shall be a large decrease for the next 21 years. Dr. Schacht, chief German delegate, has tentatively accepted Mr Young's suggestion, subject to certain economic conditions. The Morning Post says that for the first time Germany has offered a figure within a margin which the Allies can accept. That figure, which is now in process of agreement, will suffice to pay the Allied debts to the United States in 37 years, whereas Britain agreed to continue paying America for 58 years. However, the discrepancy does not disturb the British experts, as the profits of the proposed International Bank may be used for the later payments. Moreover, as one delegate said: “Who can say what will happen in the course ol' a generation?” The coming tussle over reparation will now concern the diminution of the payments for reconstruction in the devastated provinces in France and Belgium. Paris newspapers' are not enthusiastic over Dr. Schacht’s acceptance of Mr Young’s compromise. They fear it will place France in a difficult position, as she may be accused of spoiling a settlement. France hopes, however, the United States will make corresponding financial sacrifices if the compromise is accepted.