Summary of Terms of Pact of London: How Germany Is to Make Reparations that the interest will be 7 per cent.
In the case of default by Ger-_ many, an American citizen is to sit on the Reparation Commission when the Commission considers. anything arising out of the Dawes! plan, Sanctions will not be applied unless flagrant default has been established. In case of sanctions the Allies undertake to!
Frou Oon Own Comsronaeyr, safeguard specific securities for the service of the loan. The serv-
'London, Aug. 19, ice of the loan is to have absolute Last Saturday. night all the priority as regards any German parties concerned, including Gerfected to it. zany, reached an unerstandh dispute arising out. with regard to working' the Dewes of the question of sanctions can be Report, "which "We the "approved submitted to the World Court. method of. obtaining reparations: Security is thus guaranteed by from Germany. The document of the occupation of the left bank of the Rhine only. The Cologne zone called the Pact of] can only be evacuated if London, There are about 8,000] Germany has satisfied the words of it, and hardl Understands "i, at all "evente of the minute detail. The broad. lines, however, are fairly well understood, arly the obligation to disarm. and perhaps they a Matters in Abeyanee. stating for the benet 'These are the main outlines of the cables, got a very clear' grasp of what is Agreement, which will have to be posed. They may be accordingly set submitted to the different Parlin. out as follows:—though there is only some to The Prance-Belgian doubt'as to what the German Parliament may do. Tt will be accepted evacuate all German Territory not held under the Versailles both here and in Prance, It really atlas within 8 bac oe silles, takes us back to the Treaty of Ver-with rather a better guaran-Tae tua' fish Aurust tec for the payment of reparations ty Germany. Consequently, the certain towns are to be evacuated ones, and' this has already fre, altwoughs even aseming thi Bate or Covad are not to bel arrangement works well, there still pied any longer than thelremain unsettled he' folioting Ruhr itself, In the Rohr the subjects which. will call for further French have promised to make|eonferences:"inter-Allied the occupation as "invisible" as] Disarmament, Security. The onto possible, Dlishment of the League of Nations.
On its part, Germany The closing scones of the Confer to take the ence were quite dramatic, but it wa to curry out the Dawes plan, clour that all parties wanted a settle-especially in relation to the Bank,,|ment, and there was no apparent ill Railways and Industrial Deben or animosity. Accordingly, tures, and to make spe everyone is well-pleased and Mr. provision for control of revenues.
MacDonald deserves credit for giv-which are named as security for i effect to the Dawes Report which the annual payments. was initiated by the Conservative To do thix Germay has to Ministry. We now have to see how meet her obligations by taxes the whole scheme works, though it! railways and industrial bonds. ought to work well, if worked hon-'The German taxation must not catly, Tam not sure, however, that Jess than that of the Allied there is any great keenness here on countries. A sum, Tending money to Germany, who can yearly, which in 1928-29 will if she wants, I think, get all-that is euch 1,250,000 gold marks, must necessary in the United States be set' down in the German The Cabinet in Recess. budget. The German rai are to be handed over to The Prime Minister has now retire limited company, which will ed to Lossiemouth, and the rest of create and supply for reparations the Cabinet are having a holiday. eleven milliards of—first-cla They may not find it so easy to deal mortgage bonds bearing an with the Irish Boundary Treaty on annual interest of 6 per cent, which both parties seem rather un-'The whole working of the busi-compromising, and which will thus ness will be controlled by a rail-necessitate special legislation. Mr. way commissioner, who will, in Baldwin has been in Ulster, attempt-all probability, be a Frenchman. ing to make Sir James Craig a little many isto enjoy a partial micro reasonable, but so far as we moratorium during the first four ther, the results have been n years of the operation of the jgative. Por the moment, Mr. Cos Dawes plan, and to. be assisted grave "has pacified the "Trish in the initial stage by an inter-Legislature by promising action in national Loan of £40,000,000 (thi the British Parliament, but De Joan is to be negotiated in Valera is again very active publicly, October). and it is idle to disguise the fact that After the fourth year Germany the Republican movement is making' is to pay a standard annuity of headway, mainly, owing to the weak. £125,000,000, which may be ness of the Free State Government. modified within certain limits by Sooner or later there may be serious the (1) The grosse receipts from the Germany railways, trans formed into an internation
Text read from the printed page and cleaned; old type leaves the occasional error.