I am not in a position to make any further statement at the moment on the subjects mentioned in the first part of the question. No date has been fixed for a further meeting of the Supreme Council.
asked the Prime Minister whether his attention has been called to a statement in the "Board of Trade Journal" of 13th July that, in order to regain their pre-War position in external markets, Messrs. Fried. Krupp are offering credit to their agents extending over three years, while other German firms are allowing from six months' to two years' credit; and whether, seeing that these circumstances point to a working capital in the hands of German firms and a tax-paying capacity exceeding that of corresponding British firms, these methods will be taken into consideration when estimating Germany's capacity to make adequate reparation payments?
All relevant considerations, including that involved in the observations of my hon. Friend, will be given due weight in dealing with the subject of reparation.
asked the Prime Minister whether, seeing that the Reparation Commission have now replied to Germany that the reparation payments are only one and not the most important of the causes of the depreciation of the mark, and that financial stability can only be obtained if the financial reforms which they have recommended are immediately put into force, and that the chief reform is that Germany should forthwith balance her Budget by increased taxation and reduction of expenditure, it will now be the policy of the Government, working always in cordial co-operation with France, to insist that effect shall forthwith be given to this recommendation?
His Majesty's Government share my hon. Friend's view that the first essential is the re-establishment of the German fiscal system and the restoration of equilibrium to the German Budget, and they have been studiously pursuing that policy.