The Conference on affairs of the Near East began in
Paris on Wednesday. It was agreed that the Allies should demand a three months' armistice along the whole front in Asia Minor. It remains to be seen what answer the Turks will give. The Reparations Commission has decided to reduce the payments to be made by Germany this year to £36,000,000 in cash and £72,500,000 in kind. But these reductions are conditional on the immediate provision of certain guarantees by Germany. The guarantees include reduction in expenditure and increased taxation ; the 'Reparations Commission is to control both receipts and expenditure and will consider the question of a levy on German capital ; steps are to be taken to prevent the sending of German capital abroad ; and the Reiehsbank is to be indepen- dent. The publication of these conditions has excited much indignation in Berlin, though that was only to be expected. Of course, there are rumours of a Government crisis, but till indignation has been replaced by coherent criticism it is impos- sible to judge the situation in Berlin. The conditions of the Reparations Commission were unexpected and therefore have all the effect of a.sudden blow. For our part we hope that the policy of the Allies will be conducted in such a way that Dr. Wirth will be enabled to remain in office. The stability of his Government is an asset which ought not to be lightly sacrificed.
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