1919-07-28 — Page 2

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Balow is given the text of the Allied reply to the German Note on the economic affect of the Peace Treaty. It is an ancient document now, in view of what has happened since, but it has only just come "to band through the maila. Germany, it will be remembered, endeavoured to make the point that the condì- tions imposed by the Allies were economically crushing and such that no people could bear, The attitude adopted indicated that Germany would gefuse to sign and the "bluff put up by their original Note was maintained until the very last, the Allies only agreeing to minor adjustments with no departure from the principles laid down.

How far the German conten- tion was from the truth is evidenced by Herr Erzberger's statement before the National Assembly on July 8 when be proposed to increase the Empire's income by 90 per cent, and in individual states and communes perhaps by 100 per cent. Inhari- tance taxes and a levy on pro- perty were among the suggested innovations for the purpose of doing this and, in view of their original complaint and these facts, the Germans decided to ratify the Peace, Treaty by 208 votes to 115, the enemy strictures on the draft treaty seem to be as devoid of foundation as is claimed by the following Allied reply,

L-The Allied and Associated Powers have received and have given careful attention to the re- port of the Commission appointed by the German Government to examine the economic conditions of the Treaty of Peace. This report appears to them to contain & very inadequate presentation of the facts of the case, to be mark- ed-in parts by great exaggeration and to ignore the fundamental considerations arising both out of the incidence and the results of: the war, which explain and jus tify the terms that it is sought to impose N

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lost none of their productivity owing to the ravages of war. They have escaped the shocking fate which was dealt out by the German army to the correspond- idg territories in Belgium and France on the west and Poland, Russia, Rumania and Servia on the east. There appears to be no reason why their produce should not continue to find a market on German soil.

Qun, Authority? Food Controller, 1916- 17, was one of the chef witnesses before the Coal Inquiry recently. He gave evidence regarding the soquisition of took undertakings of March 31, 1909, the basis of compensation, method of settle- ment, and its effect on dock debenture and stock holders.

The Chairman: Have you any views as to the capasity of Goverment Departments run ping an industry-I have been in a Government Department I was Parliamentary Secretary to the Board of Trade with Mr. Lloyd George from 1904 to 1909, and it did not appear to me to have quite the attributes of a first-class commercial organis ation

CIVIL SERVANTS.

The Chairman: What were the defects-I do not want to asperse the civil servants, but I should say that the defects were lack of training and experience of business handling and control. Obviously men who have been trained to business, and come menced their careers probably at 16 years of age, must haye wider experience than men who are not in touch with busi.ess organisations.

Mr. Sidney Webb: Can you give be any idea of the kind of economy that the Port of London. Authority has been able to effect?

Lord Devonport pointed out that between £15,000 and $16,000e year, the directors' fees amounted to and that as the present Authority was an unpaid body, that was so obvious economy. During the last five years cfcumstances had rather cut across economies which they had anticipated. They had had to give very large increase in wages and had, of course, largely increased dues. The circumstances of the las five years had not been favour. able to economy.

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proposed restriction on the import V-Stress is laid upon the of phosphates. It is however, forgotten that Germany has never II. The German Note opens produced, but has always import-discriminate between the in- Mr. Sidney Webb: Can you with the statement that the in-ed, the phosphates of which she. dustrial resources of Germany stands in need, nor is there any were inadequate before the war thing in the Terms of Peace for the nourishment of a popula- which will prevent or hinder the tion of 67 millions and it argues importation of phosphates into as though this were the total for Germany in the future. Other which, with diminished resources, countries which do not produce she will still be called upon to phosphates are also compelled to provide. This is not the case. impost them in common with The total population of Germany many other products from the will be reduced by about six outside, and the only difference million persons in the non- in the two situations will · arise German territories which it is proposed to transfar. It is the

from the relative degree of wealth or impoverishment in the count- needs of this smaller aggregata ries concerned. that we are called upon to con- slder.

SHIPPING TERMS.

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if Lord Devonport found there

Sir Arthur Duckham inquired THE SIAM INDUSTRIES SYNDICAT were less labour troubles now that the docks were under the Port Authority, than when they were under private management.

Lord Devonport, in reply, spoke of the strikes of 1911 and 1912, and said there were two LOSS OF COAL:

representatives of Labour on the Authority. "Honestly, I am: VI-The German Note makes bound to say that the expecta special complaint of the deprivations that Labour representation one-third of the production of the tion of coal and asserts that nearly on the Authority would prevent existing coal mines will be fost

labour troubles have not been our Bot it omits ta notice that one- fourth of the pre-war consumption of German coal was in the territories which it is now pro-. posed to transfer.

German Note that Germany is III-Complaint is made in the required to surrender her mer chant tonnage existing or in course of construction and that a prior claim is made upon her shipbuilding capacity fora limited number of years. No mention, however, is made of the fact that CEMENTmaller tonnage of Germany is a considerable portion of the COMPANY, LIMITED. left to her unimpaired and it seems to have entirely escaped the notice of her spokesmen that the sacrifice of her larger shipping is the inevitable and necessary penalty imposed upon her for she to the fact that the output of coal Neither is any reference made ruthless campaign which, in the non-transferred districts defiance of all law and precedentas rapidly increasing before the she waged during the last twar, and that there is no reason years of the war upon the mer to doubt that under proper cantile shipping of the world.

managymesit there will be a con- finging increase in the future.

** PORTLAND CEMENT.

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| SHEWAN, TOMES & CO.

General Managers, Hongkong: 18th August, 1916.

MASSAGE HALL

23. FLOWER STREET, MR. T. TAKAYE, MES. MORITA A

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PUBLISHED AKKUÍLLY,

LONDON DIRECTORY,

with Provincial & Foreign Settlost... ausblas tendens te oemminicate direct wicz

MANUFACTURERS & DEALERS 7" in Lipencer and motis Proracial Towns and Tofustrial Centene of the United Wagdom and

“addiques and older Ödale are clamidad (under Fadar yaka - Antony domet honing

SEXPORT MERCHANTS JOUR with Becalled periferier of the Goods shipped and the Colorid), and Foreign, Markais anopiled;

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As a partial offset against, 1234 million tons of s sunk it is proposed so four million tons of German shi ping. In other wo ping which it is

from Germany cortit than one-third of that wh thus wantonly destroy universal shortage of, shipping is the result For the Terms of Peace, but of the setion of Germany, apd no surprise can reasonably be falsif age is cal upon to bear hershare and

8 very moderate share of a loss for which her own criminal deeds have been responsible,

IV. Great stress is laid upon the proposal that on the eastern side Germany shall be depriv of the regions "specially

to the production of

potatoes This is tru Note fails altogethe that there is nothin

Observ

80,000,000 tons of which were Further, it fails to take into ac-' count the production of liguite, produced annually in Germany before the war, and none of which is derived from the transferred territories.

But should not the coal situation be viewed from différent and wider standpoint? Linot be forgotten that among the most wanton acts of devasta- espetrated by the German dging the war was the dost complete destruction by coal supplies France. An entire obliterated with fon and a savagery years has boss of coal in Western Europe There and pro ged shortage

the effect of this short cambe no reason, in equity why should be bor

Allied ms, or

ware its

berately

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experience. If you confine your able. It would be unwise to concerned, they have not suff question as to whether we have attach too much weight to either at all. Thaiz zemaining had less trouble or more, I say speculation

untouched we have had more.

resources, XL-Finally, the German,mented by the volume Mr. Smillie: Have you any peace conditions will logically rec very and develo

Note rashly asserts that the trade, should be single apartment houses for your bring about the destruction of REDUCTION OF ARMAMENT workmen in which to live?several millions of persons in XII-The German rep think not

like to see a family living in one Mr. Smillie: You would not

room, would you?-I certainly should not like to start on that basis.

Mr. Smilie: Have you anyho have perished in the war, or will be caused to hre

Germany," in addition to those ignores the immense relief the two-roomed houses? No.

blockade. Against the war losses armaments in future. who are alleged to have lost their the struggle for recove lives, in consequence of the enforced reduction ofhe of Germany might very fairly be of thousands of her placed the far greater losses who have hitherto been which her initiative and conduct either in training for arm of the war have inflicted upon the producing instruments Allied countries, and which have truction will henceforwar of a country is essential in order the manhood of Europe. On the and for increasing the

left an ineffaceable mark upon available for peaceful avo jo procure a reasonable share of other hand, the figures and the productiveness of the ne its products. Such a proposal losses alleged to have been caused result should be more law or in history.

finds no foundation in economic. by the blockade are purely to the German peopl

hypothetical

XUL-But the PALEABLE EXAGGERATION.”

The German estimate of future of any such recu losses could be accepted only if appear to be IX-The Allied and Associate the premises upon which it is recognize the red Power cannot accept the presumed to rest are accepted state of the

speculative estimate presented to also But they are entirely been them in the German Note of the fallacious. There is not the creating, and future conditions of German in- slightest reason to believes cannot escape dustry as a whole. This estimate that a population is destin share which she appears to them to be character-ed to be permanently disupop, to bear of red and vitiated by palpable abled because it will be called calamity that has exaggerations. No note is taken upon in future to trade across world has been of the fact that the economic its frontiers instead of producing the victorious Powers widespread and indeed aniversal country can both become and can bear it. disaster produced by the war is what it requires from within, deserts, but solely to her Every country is called upon to regntinue to be suffer. There is no reason why manufacturing count Germany, which was

for the wax, should

Similar

population of

reliance can be data

hion from

try, but thei

receive the

sought to show Blood of Go

a gre

with sponsible

producing the raw materials for kino. its main industries,

case, for

Hat Britain,

half