New Britain herald., 1927-12-17
REPORT 0F DAWES
 PLAN OPTIMISTIC
Improvement in European Eco- homie System Seen

Berlin, Dec. IT RNUntil Ger many has been given a definite task to perform on her own responsibil- ity, without foreign supervision and without safeguarding measures for the protection of her currency, neither the separations problem nor it's allied issues will be solved final- ly, is the conclusion with which s. Parker Gilbert, agent general for separations, sums up his report for the third annuity year under the Dawes plan.
 Optimism mingled with stern warnings is the keynote of the docu- ment which again constitutes an exhaustive review ot Germany S economic position for the year end ing August Sl, 1927.
 The agent general reiterates his previous acknowledgement Of Ger nany's loyal fulfllment of her obli- cations under the Dawes plan, and also gives a renewed emphatic eX- presson to his criticism laid down in his much discussed memorandum to the German government of Octo- Der 20, 1927. In this memorandum the growing tendency toward over expenditure, over borrowing ana other budgetary practices which he noted In Germany. was made the subject of criticism which tempor- arily provoked storm Of resent ment in the German press.
 Preparations Put First
 A significant passage in the re- port definitely places the priority or reparation payments over service 'or external loans floated publicly and privately with the exception or the German external loan of 1924.
 Budget Position Improved
 An analysis of the German budget again occupies q major portion Of the agent-generals review. The bud get position of the Reich, he says. has improved since the last report in that current tax revenues have largely increased, while current eX- penditures have decreased. The Ger man governments good will in this direction was said to have impress ed the agent-general with the behet that If further vigorous acton Is taken public expenditures may be brought to keep within the limits ot available revenue.
 Referring to the proposed foreign loan of the German Railways com pany in the form of preference shares, the agent-general states:
 Any issue of preference shares of the German Railway company Will be entirely subject to the prior right Of the previous ] ,000, ,000,o ,ooO gold mark reparations bonds of the com pany and any guarantee that mlSh' be given to the shares by the Ger man government would also be sub- feet to the general separations pro visions including those of article 24S of the treaty of Versailles
 Tho tariff barriers confronting Germany in her endeaVor to find foreign outlet for her products art the chief difficulty in the way Of substantial increase in German eN' ports, 1t was said in the agont-gen' erals report which was inclined tt take hopeful view of the future development of this aspect of Ger man economy.
 S36O, 900, ,OOO Paid
 Of the 1,500,OO0,00o gold marks reparations payment for the thirc annuity year Approximately s3to'' 0oo. .O00) the countries are credlteG with the following approximate amounts: France, s174,OO0,o Brit ieh Empire. s75,Soo,0o0: Italy, $23'' sso.OoO: Belgium s23,2S0, 0,ooo; Jugo slavia, $l2,960,0o0; Rumania. s. 900, 900; Japan, S3.lco,0o0: Portugal s1,o20,0o0; Greece. sS6o,o0O; Poland s72,960.
 Tho United States share In tho third annuity amounts to about 99,' 900, 900 gold marks, about $23, t6O,' 900.
 Germanys total payments in casi and deliveries in kind for the thr"' years during which the experts plal has now been in operation amounteC 10 3,72O,00O, 900 marks (about SS92' 800, ,oo0).
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