THE MOROCCAN DIFFICULTY

Gisborne Times, Volume XXIX, Issue 3336, 30 September 1911, Page 7

THE MOROCCAN DIFFICULTY

GERMANY’S REPLY TO FRANCE. “ ECONOMIC SITUATION SETTLED.” COMPENSATION IN THE CONCO. [UNITED PRESS ASSOCIATION- -COPYRIGHT.! PARIS, Sept. 28. It is officially reported that Germany’s reply concerning Morocco lias been received, including the Moorish demands. There are reservations requiring serious consideration. (Received Sept. 29, 11.40 p.m.) PARIS', Sept. 29. M. Caillaux, the Premier, states that Germany’s fresh proposals m regard to Morocco merely relate to the modification of certain formula on which agreement had not previously been reached, and do not relate to the,economic situation which is settled; Several newspapers suggest that Germany is'attempting to keep the Moroccan'question open, pending a settlement of the terms of compensation in the Congo. THE FINANCIAL ASPECT, HOW IT AFFECTED GERMANY. Unless Germany comes to an agreement with France she would he forced into virtual bankruptcy. This was the decision to which a meeting of French financiers came after an all-night session at Frankfort. Baron Rothschild, who attended the conference as the representative of German financiers, and who presided, was unable to secure any concession, except on the understanding that the German financiers forced the Government into a settlement-. German Government 4 per cent loans amounting to 300,000,000 marks, were falling due. They w6re mostly held in France, where they were placed by German banks. An admission by the banks that they “could not make good” would mean a financial upheaval in Germany. It was also rumored that Mr J. Pierpont Morgan has agreed to furnish the necessary money to avert a panic, provided that Germany accepted the financiers’ ultimatum.