WORLD AFFAIRS.

Auckland Star, Volume LX, Issue 264, 7 November 1929, Page 6

WORLD AFFAIRS.

A WEEKLY REVIEW, (By BYSTANDER.) A few days ago it looked as if the Mac Donald Government had. committed an error in judgment in regard to India which might seriously jeopardise its position. For the statement made by Lord Irwin concerning the attainment of Dominion status by India seemed to indicate developments far in advance of anything yet suggested or expected at Home. It now appears that the Viceroy himeelf suggested the publication of this document, and Mr. Mac Donald arid his colleagues have given their assurance that it was intended only to emphasise Dominion status not as. a probable and immediate, concession, but as the ultimate goal of India's ambitions. The eagerness with which Mr. Lloyd George seized upon the opportunity to ask the Secretary of State for India several searching questions suggests tha,t if the answers had been unsatisfactory the Labour Government might have found itself confronted by the combined forces of Liberals and Conservatives intent upon its destruction. A False Alarm. Wheii the first excitement aroused by Lord Irwin'e statement had died down, it became clear that there was nothing to be alarmed about. But the Mac Donald Cabinet was still open to criticism because it had permitted the publication of a manifesto which might easily, be misinterpreted, and because it had apparently committed itself to a definite course of action in regard to India without waiting for the report of the Simon Commission. However, the India Office has published correspondence -which shows that Sir John Simon had himself communicated _with Mr. Mac Donald suggesting that, whatever be the character of the final report, it will be necessary to consult the rulers of the Native States as to their position, and that therefore it would be well to arrange for a further conference; to include them as well as Nationalist representatives, "in order to secure the greatest possible measure of agreement." This is all perfectly legitimate and "correct," and the Labour Government may regard itself as completely "cleared" on this count of Mr. Lloyd George's indictment.

Frenzied Finance The panic on Wall Street during the last week in. October will probably go down in financialhistory as marking one of the- worst crises-on reconi. But there does not seem to have been any sound material excuse for-it, and certainly the fall in the prices of securities and shares did not indicate any real collapse of America's economic or finanoiai mechanism. It was generally: known that prices, under the influence of various "bull" movements, had been run .up to an artificial level in Wall Street. The "bears" were waiting their chance, but they did their. work too well,-and when they once got prices on the down grade they seem to have lost their heads. Terrified at the universal "elump," holders began to unload securities at any price they would fetch—and after that, the deluge.. When the- New York Stock Exchange shut its doors for .three days, the excuse given was that the brokers' clerks had not. had any sleep for two or three nights and could not catch up with the enormous accumulation of ealenotes., But while this may have been true, the closing- of a Stock Exchange is generally a desperate expedient to deprive sellers of _an. open market and so prevent, them from throwing their holdings away. In any case, it gave the terrorstricken investors time to consider, the .situatjon and recover their senses. But no doubt the trouble was , largely due to over-speculation, by people trying to gamble on "margins" without capital behind them. . The announcement by J. P. Morgan and Co. and the other leading banks that they will require : only.a 25 per dent margin for "the time being, will no doubt help to. restore confidence; but It points clearly to the root of the evil. Evil Communications. ' This week the House of Commons is supposed to-debate the whole question, of relations wit,h Russia. The Opposition has .given notice of motion to the effect that the "preliminary conditions"—referring to financial obligations and propaganda—should have been insisted "on,"and regretting the apparent failure of-the Government to° maintain them. Most people will probably agree that nothing has come"to-light which,could justify the surrender of the principles on which 1 Mr. : Mac Donald himself has: often insisted,. As,_to Russia's debts and her refusal to discharge them, it happens that a little fresh information is just available. Mr. Leslie Urquhart, as head of the Russo- Asiatic Consolidated Company, is still pressing the Soviet Government for a settlement of his claim of £56,000,000 for properties confiscated in 1917 when the Bolsheviks took charge. At the same time the ■ Committee of Railway Bondholders interested in the Russian lines has just announced that its claims amount to over £100,000,000, "excluding interest since .1918." Unless and until the Soviet Republic' sees fit to, recognise, the justice-of such claims, and attempts to meet them, it is. not very easy to imagine how British or: other foreign merchants and financiers can t>e expected to have sufficient confidence in the Bolsheviks to deal with them, whether diplomatic relations are resumed or not. .- [Later developments. are dealt with in our leading columns. —Ed.]

The Soviet Way. . There is another aspect of Russian affairs that may eurely be taken into account by any Government that is called upon to enter into intimate and amicable relations with the Soviet Government. " During the last week the cablee nave reported to the world sanguinary atrocities perpetrated by the Bolsheviks in Manchuria, wholesale massacres of peasants charged with "rebellion" agairat the Soviet, and the horrible treatment inflicted upon political prisoners on the Solovetsky Islands in the White Sea. Anyone who wonders ■ whether these . last horrors are figments of journalistic imagination may be requested to read "In the Clutches of the Tcheka," a book just published in English, reciting the experiences of a Finnish merchant, Boris Cederholm, who went to Ruesia on business, was arrested and: detained in prison two years (1924-26), without trial, on these very islands. And anyone .whose nerves, are strong enough to enable him to hold out to the end will probably find in it a good many reasons for insisting that Bolshevik propaganda shall not be imported into-Britain along with the other commodities that the Soviet Republic is so anxious to supply.' ' ■ .

, A King's After-thoughts. - If we are to believe the latest news from Afghanistan, the usurper Bacha-r-Sakao has come to his appointed end.' Captured by hostile tribes; men, he has been duly executed, and apparently he deserved neither sympathy nor regret. This son of a water-carrier was as ferocious and cruel as his worst, enemies, and-he'was not likely long to escape an appropriate fate. The real -instrument of Destiny in his case was Nadir ihan, the chief who "doubled" the parts of ambassador to France and commander of Amanullah's forced. Now, in all probability,. N;adir Khan will sit upon the throne in turn. But : apparently Amanullah does not care. He has; sent his congratulation's from Rome to Kabul,' and assures the world: that he has no "intention of to the throne." Apparently one experience as-the fool, who tried to hustle the East" has been enough for him, and he,-prefers comfort arid; security in' Europe to: the ; pi life-in the Orient., v : v -«