PROSPECTS AT GENOA.

Press, Volume LVIII, Issue 17437, 24 April 1922, Page 7

PROSPECTS AT GENOA.

GERMANY AND THE CONFERENCE

AN OPTIMISTIC SURVEY.

THE RTJSSO-GERMAN TREATY.

(By Cable—Press Association—Copyright.) (Australian and K.Z. Ca-ble Association.)

(Received April 23rd, 5.5 p.m.) LONDON. April 22

Mr J. L. Garvin, editor of the "Observer/ writing from Genoa, says Germany's signature of the Ru siaii T:eaty was clue to a spasm of suspicion and fear. Genoa is infected with lies. The Germans heard quite erroneously that the Russians and the Allied Rowers had nearly reached an agreement, and the Germans feared their economic interests with Russia might be prejudiced. It was not the Russian delegates' fault that the Treaty was not signed at Berlin when they were on their way to Genoa. The Russian and German peoples are econnmicolly necessary to each other. the Bolsheviks would have been fools not to have signed instead of offering: the mailed fist, as at Brest Litovsk. Germany came cap in hand to Genoa. The Allied Powers were at first stupefied and astonished and then consolidated. Mr Lloyd George had risked the con'tinuance of the Entente and his own political existence in order to restore a working concert in Europe by including Russia and Germany as members of the Conference; vet the first use the Germans made of their new footing of equality was to the old fatal doctrine of two camps m Europe. The Germans had themselves to blame if it was universally felt that they would next proceed to a political and military alliance with Russia.

France's first impulse was to smash the Conference and occupy the Ruhr district. Could Mr Lloyd George and Italy save Germany from herself? Our fate hung noon a hair. Fortunately the skies cleared. The Russian reply was far more reasonable than was expected. The German difficulty has been overcome, apart from its legacy of friction and lessened trust.

A Tribute to }£r Lloyd George. ''The next week must make or break the Conference. It is most likely *o last a fortnight. I am convinced it will achieve great and memorable results unless France prevents it. Mr Lloyd George is, as he was in the blackest moments of the war, indomitable and formidable. Jrlis dexterity is dragging the Conference towards success. He believes it will achieve big pinposes and form the basis of subsequent disarmament on which a new Europe be based. He believes that continuous work onwards will be carried out towards this end by a strengthened and extended League of Nations, that the world's life depends on this, and that the alternative is the fall of European civilisation."

FRENCH OBSTRUCTION TACTICS. >

ANOTHER "CRISIS" -PASSED.

(Received April 23rd, 11.5 p.m.) GENOA, April 22. Tili© Conference sustained a further shock when it was reported that France had sent a note to the Powers declaring that the Russo-German Treaty violated the Treaty of Versailles. At tjie outset it looked as if a major crisis had arisen. A meeting of the British delegation was hastily summoned, and was followed later in the day by a meeting of the five big and the four small Powers, at which M. Barthou .argued that the Treaty contravened the Cannes resolution, to say nothing of other treaty engagements with Germany, and that it would be incompatible with French dignity to continue to co-operato with the German delegates on Russian affairs.

The French delegation also referred to the Russian comments on the London experts' report. M. Barthou declared the French experts could not sit on the expert committee* appointed to deal with M. Tchitcherin's reply until these comments had been discussed.

Mr Lloyd* George pointed out that the comments were unofficial, and were merely issued to the Press by the Russian propaganda bureau as part of theii riormal activity. He said the Russians admitted to comments applied to their past opinions and not their present ones.

Mr Lloyd Gborge declared ho wished to get on with the Conference instead of having his time taken up with crises. Otherwise he would have to explain to the British Empire and the world gonerally who was responsible for these delays. , After further discussion, the meeting broke up in an apparently happy frame of mind. '

It is proposed to resume the general work of Conference.to-monow. It appears as if the anxietv caused by French action has be«n dissipated. Strong British Comment.

The Genoa correspondent of the "Sunday Times" says.—"lt is most difficult to deal with the French delegation. What they expect to gain by their niggling tactics is not clear. The llusso-German Treaty is signed, anyway, but oven that might have been avoided but for M. Barthou's attempt to keep the Germans outside the inner workings of the Conference. The present French tactics can only succeed in driving their two betes noirs closer together." ' •Mr J. L. Garvin, editor of the Observer," writes from Genoa:—'"We hear rumours of action from Paris which, instead of breaking up the Conference from within, will torpedo it from without. The pretexts are baseless. There is not one word of truth in the report of a military convention between Germany and Russia. Nothing but French intransigeance itself could organise bv degrees that final solidarity leading to another Armageddon. The wrecking of the Genoa Conference by a torpedo from Paris would mean the ultimate suicide of France,, for Britain cannot commit suicide in sympathy with her. Either there will be the be-ginning-of a new Europe after the Genoa Conference or soon there will be no entente." -.

THE TREATY WITH RUSSIA.

GENOA, April 21. Germany's Note, accepting expulsion from the First Commission dealing with Russia, states that she desires to continue to sit on the commissions dealing with all other affairs. The Germans said they had recognised the Soviet Government long ago The Treaty had been prepared for weeks. The Germans were ready to continue to help in the success of the Conference, and to rc-esttiulisli relations between East and "West. The Xote adds that the Gei mans were pressed to sign the agreement with Russia, as their interests had been neglected by London, and, if they had not accepted the Russian agreement, t.hey might have been asked for burdening reparations. CURRENCY AND EXCHANGE. FINANCIAL COMMISSION'S IffiPOET. (Received April 23rd, 11.5 p.nO GKNOA. April 22.

The. Financial Commission has approved the Sub-committee's report for oresentation to the full Conference. In •addition to the recommendations already published, it declares it is desirable' that European currencies should be based 0 n a common standard. There should be a gold standard only, but so long as deficiencies in annual Budgets are met by tho creation of fiduciary money or bank credits, no currency reform is possible, and no approach to a gold standard can be made. The balancing of Budgets requires adequate taxation, but if Government expenditure is so high as to drive taxation to a point beyond what can bo provided out of a country's income, taxation may itself lead to inflation. Therefore, reduction in Government expenditure is the true remedy. The report suggests an international convention to centralise and control tho demand for gold. Credit should be regulated to maintain the currencies at par with one another, and also to prevent undue fluctuations in the purchasing power of gold, although tho discretion of central banks should not bo fettered by definite rules on this point.

[A previous message said the conclusions of tho Sub-committee on Currency and Exchange differed very little from those of the Brussels "Conference two vears ago. The commission would prooably recommend tho convening of a conference of representatives of each country's central bank of issue in-order to carry out the commission's scheme. America would be invited to join through the Federal Reserve Bank. Sir Robert Home, Chancellor of the Exchequer, said the abstention of America could wreck the scheme, but he thought America could not isolate herself from such a conference of tho world's financiers. The commission recommended the maintenance of the gold standard and free exchange dealings. France proposed, and Russia seconded, that the Bank of England should bo tho convenor of the central banks' conference.].

M. TCHITCHERIN AND ROYALTY

GENOA, April 22. One of the first delegates to greet the King of Italy on board the warship Gonto di Cavour was M. Tohitcherin, who, discarding his "Soviet clothes," woro an immaculate frock coat and silk hat. Large crowds cheered the King when he passed through the troop-lined streets.