LITTLE ENTENTE POWERS.

Auckland Star, Volume LIV, Issue 182, 1 August 1923, Page 5

LITTLE ENTENTE POWERS.

THE POSITION OF HUNGARY. DELEGATE FROM POLAND. A DEVEIX>PMEMT LOAN. ,By Cable—Press Association.—Copyright,! BUCHAREST, July 31. M Biltz has arrived at the conference of the Little Entente Powers at Sinaia to represent Poland regarding the frontier differences between Poland and Czecho-Slovakia, 'which are 'hindering a closer bond between the Little Entente and Poland. The conference discussed the frontier between Rumania and Yugoslavia, also the question of exchanging liens on Hungarian property for strict control of Hungarian finances, which would enable Hungary to raise a loan. — (A. and N. 55.)

Is Hungary now going to take the place so long "occupied by Austria as "tfte Central European problem"? asked a London paper recently. Sir William Goode, president of and British representative on the Austrian section of the Reparation Commission, who hae been in Budapest for some months, spoke very gravely of tlie etate of the country. The financial position has grown steadily worse and the crown at the beginning of June stood at about 28,000 to the £, despite the efforts of the Government to prevent depreciation. Hungary recently appealed to the Reparation Commission to release her from her Reparation obligations for a period of twenty years, to enable her to raise foreign loans under the supervision of the Financial Commission of the League of Nations, on the lines that are being followed with conspicuous success in the case of Austria. Britain and Italy strongly supported the proposal, which, Sir William Goode urged, was the only way of "averting a financial debacle with inevitable repercussions on the neighbouring States an* the rest of Europe." The Reparation Commission, when dealing with Austria or Hungary, consisted of Great Britain, France, Italy, and Yugoslavia representing the Little Entente. The attitude of the Little Entente towards Hungary is well known, and the Yugoslav representative voted against the proposal. Britain and Italy voted for it. France, in pursuance or her established Continental policy, supported the Little Entente. That made the votes equal, whereupon the French chairman gave hie casting vote against the proposal, and in favour of another, which cut out the League of Nations altogether, and stipulated that part of any loan raised should be devoted to the payment of reparations. One of the conditions attaching to this decision is that Hungary undertakes "to pay with the utmost regularity the costs of the armies of occupation, to make deliveries of live stock and coal, and to execute promptly and willingly all the provisions of the Treaty other than those containing financial obligation." AH that hae a firm, businesslike look about It, remarks the "New Statesman." But is it good business? We have come reason to doubt the efficanv of the French method* of debt-collecting, and unless Hungary is to be given a better chance than this, we may as well be prepared for trouble.