WAR REPARATIONS.

Waikato Times, Volume 107, Issue 17913, 8 January 1930, Page 7

WAR REPARATIONS.

THE HAGUE CONFERENCE. ATTITUDE OF AUSTRIA. UNABLE TO PAY A PENNY. United Press nsai.—Elec. Tel. —Copyright THE HAGUE, Jan. 7. Apart from Austria's dramatic announcement that she cannot pay one penny of reparations, the principal interest in to-day’s sitting of the Hague Conference centred in a secret meeting at Binnenhof between the chief German delegates and the representatives of Germany’s principal creditors. No secretaries or experts were present and no communique was issued. It is understood that a discussion took place on the few remaining points in connection with German reparation. An important question was that of hard cash. As it concerns the date upon which the transfers are to be made by ■Germany to the International Bank by way of monthly payments of an average of £8,500,000 each, the loss or gain of interest, according to whether the payments are made on the first or the 31st of the month, may amount 'to £4,000,000 or £5,000,000 a year. Complex Problems. Until a compromise has been reached the matter Is certain to give rise to a most ingenious controversy. Other points remaining include the gold value of Germany's currency and assurances regarding the security of certain German revenues now mortgaged for reparation purposes. These problems are so complex that Dr. Curtius has specially summoned Dr. Schacht, president of the Reichsbank, to the Hague. The most difficult question remaining to be settled, however, relates to the measures to be taken in the event of Germany’s future default and the precise powers of the International Bank. The Germans want an assurance that the Young plan implies the moral end of the regime of sanctions and particularly the military sanctions. M.M. Briand and Tardieu are privately convinced that the sanctions are things of the past, but they are not willing publicly to give l any assurance which 'might be construed as a renunciation of the peace treaty. As'the matter was raised by the French and German delegations they will have to find a formula. 1 Continuous Conversations. The conversations between M. Tardieu and Dr. Curtlus have been almost continuous. Dr. Curtius has insisted that the international bankers are strongly opposed to the idea of military sanctions, arguing that the American banking Arms which have undertaken to market the German bonds in the United States in conjunction with the Allies’ banks of issue, will not guarantee the successful sale of the bonds if the military controversy is raised. The general belief is that the Germans will not succeed in having the provisions of the Treaty of Versailles annulled, but may keep sanctions out of the protocol.

Suspension of Payments. It is reported that M. Tardieu, when at a luncheon with Mr. Philip Snowden, suggested that in the event of Germany exercising her rights under the Young plan to suspend payment, all the machinery' provided in the plan should be put into operation, and that if in the end the Arbitration Committee should decide against Germany she should have the right to bring the matter before the World Court at the Hague. Only after the World Court had decided against Germany would the right imposed by the sanctions exist. The time that would be occupied in that procedure is estimated at one year.