The Prime Minister. Honourable Colleagues,—Since the last meeting of the Cabinet, the situation on the Ruhr has become more complicated, and this also from the social point of view, as the result of the closing down of the factories and the outbreak of strikes in the mines and public services of the occupied zones.
In order to understand the attitudes of the different Powers and the fact that these attitudes have not undergone any changes worthy of note, it is necessary to summarise briefly the events of these last few days of high tension, political and economic.
The period of time granted for the Moratorium having elapsed on 15th January, France and Belgium have caused a Mission of Control to be sent to the mines in the Ruhr district, escorted by protecting troops, and have extended the area of territory occupied in the Ruhr district as far as Dortmund. On 16th January the French Government gave notice that the industrial magnates on the Ruhr had declared that they had received orders from the German Government not to hand over any more coal. The German Minister for Foreign Affairs himself communicated these instructions to our Ambassador at Berlin.
France and Belgium were not, therefore, receiving any more coal, even when payment was made in advance. In the face of the German resistance, the French and Belgian troops have proceeded to requisition the coal deposits at the pitheads, the factories and the railway stations, and have also taken other serious steps of a political and military order. Italian experts, sent only to take part in economic operations of control, received orders to limit their co-operation to that which concerned coercive measures of a political nature.
Such an attitude was clearly faced and decided in Paris. On the strength of the decision made on 26th December by the Commission of Reparations, which reported the failure of Germany, as regards Italy also, to supply wood, France and Belgium decided to proceed to the exploitation of the Crown and Communal forests in the Rhine territory. Germany had, besides, made it known that coal supplies and cattle would be refused to France and Belgium, by way both of reparation and restitution.
The Commission of Reparations in its decision of 16th January verified this intentional failure on the part of Germany from the 12th January, and notified it to the Government. As a result of this, France and Belgium decided to take possession of the west customs frontier of Germany in the occupied zone. The Italian Government took over control of the customs and also of the forests, this being included among the measures which the Italian Memorandum had reserved as a security in the case of the concession of the Moratorium; but it asked the French Government what was going to be the extent to which the action was to be carried. The French Government replied that the occupation of the Ruhr was not of a military character, but was for the protection of French technical bodies, which were very numerous in the occupied area. The Italian Delegate, who was already on the High Commission of the Rhine, which directs the exploitation and also the control of the mines, has received orders to take part in those deliberations which have an economic and financial character, and to abstain from attending those which are political.
As I said before, the attitudes of the Great Powers have not altered to any great extent. England seems officially uninterested in what happens on the Ruhr, but this has not prevented the English Representative on the Rhine High Commission from declaring in the name of his Government that he will be present at the deliberations, abstaining from recording his vote when he thinks it best; but he adds, also, that his Government will not oppose the carrying out of the provisions in the zone occupied by the English troops which still remain on the Rhine. As you see, it is not England’s intention to accentuate the difference between her policy and that which is, at present, adopted by France.
Mediation on the part of Italy was spoken of, which might have led later to a direct Anglo-Italian intervention, both at Berlin and Paris. An offer of real mediation does not exist, and could not be made without the certainty that it would be accepted with a certain favour. It would be a grave mistake to expose Italian policy to a failure of this sort. It is a fact that the Italian Government did warn the Germans of the danger of the blind-alley situation in which she has voluntarily placed herself, and in which she seems determined to stay. She also called the attention of France, in a friendly manner, to the complications, not only economic but also political and social, which might arise from the occupation of the Ruhr.
The Work of the Italian Government. Matters standing thus, the Italian Government cannot at present change its attitude, because no step it took now would alter the general situation or exercise a preponderating influence in the decisions of the Governments most involved. The opinion of the Italian Government is that the situation on the Ruhr has not yet reached the stage at which a solution must necessarily be found, and only when that moment arrives will it be able, perhaps, to have an influence on the situation itself.
As for the Moratorium which President Poincaré has decided to propose to the Germans, in view of the fast approaching date of payment, 31st January, it is worthy of note that it will include some of the points made in the Italian Memorandum of London, namely the two years’ Moratorium and the German internal loan.