New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1923-08-02

BY The Associated Press.
London, Aug. Prime MiuisterI
Baldwin Joined with Lord Curzon, the
foreign secretary, In informing par-i
lament today that the repnes byl
France, and Belgium to the Britislti
reparation note seemed to hold onta
no prospect Of a settlement OF thei
Ruhr situation in the near future nora
the opening of discussion regarding
reparation.
Reviews Last Note.
Mr. Baldwin began his statement
by reviewing the British draft reply
to Germanys last note. He said the
British government had expressed the
opinion that while nothing should be
done which would BE inconsistent
with the stipulations OF the Versailles
treaty, advantage could be derived il
impartial experts. cooperating with y
the reparation commission, should ex-
anime Germany's capacity to pay.
The reply also pointed out. Mr..
Baldwin said, that the economic
value of such a step must largely de-
pend upon factors not mentioned in
the German memorandum, such as
stabilizing the mark and balancing
the budget, and that no guarantee
could be effective unless provision
was made for some form of interna-
tional control over the German finan-
cial administration.
Passive, Resistance.
THE reply ended" continued the
prime minister, by advising the Ger
thaf if dao
resumption of the inquiry, to with
draw without further delay the or
dinances and DEGREES which organized 4
and fomented the policy of Passive
resistance, and to unequivooally dis
avow the acts of violence and sabot-
tage, which in some cases, had ac-
companied it.
THE reply expressed the belief that
such action on the part of Germany
would involve reconsideration by the
occupying powers of the conditions
of their occupation and the gradual
return to the normal features of In
dustrial life in the Ruhr."
Discussion Is Urged.
In the covering note with which
this draft reply was sent to the allied
governments the British government
gave fuller explanation of the views
which they held on all these points,
and they urged upon their allies that
an interallied discussion should be
opened with as little delay as pos
sible, whether by conference or other
wise, for the purpose of celebrating
a set plan for general and final
financial settlement.
AS regards the guarantees offered
by the German government, the Brit
lsh government went on to point out
In the draft reply that the economic
Salue of any such guarantees must
largely depend on factors of which
The German government in its mem
orandum had made no mention, such
as stabilizing the mark and balancing
The German budget, and that no guar
antee could be effective unless provi-
sion were made for some form of in
control over the German
financial administration.
Replies Received.
THE replies of the allied govern
ments now have been received. The
italian government has not SO far re-
turned written answer, but ex-
pressed themselves as in general
agreement with the views and pro-
posals of his majesty's government.
CHEERS greeted this announcement.)
The French and Belgian govern
nents returned independent replies.
His majesty's government has de-
voted the most careful and anxious
to those replies While
We are fully conscious of the friendly
language in which they were couched
and the cordial spirit by which they
we're animated, we regretted not to
ind in them the material for send
ng an allied answer to the German
note, to the dispatch of which we at
.ached SO much Importance.
Indeed, the draft reply submitted
BY his msjesty's government was not
mentioned In the French and Belgian
replies. nor did those notes appear to
hold out any prospect either of an
Early alteration of the situation In the
Ruhr or of the commencement of dus-
,ussions about reparations. to which
Continued on Eleventh Page,