A CRITICAL PHASE.

Press, Volume LXVIII, Issue 20587, 1 July 1932, Page 11

A CRITICAL PHASE.

MR MACDONALD'S TACT. DELEGATES OF SIX POWERS CONFER. (BSITISU OFFICIAL '.VIitULKSa.; (Received June 3(Jth, 5.5 p.m.) RUGBY, June 29. There were important developments at the Reparations Conference at Lausanne, when a critical phase in the proceedings was turnecf largely owing to tho intervention of Mr Ramsay MacDonald. Tho publication by Captain F. von Papen (German Chancellor), of a statement regarding the long conversations yesterday between the delegates of France, Germany, and Britain led to fears that the Conference was in danger, but these fears were dissipated after a meeting was held in the evening, at which the six inviting Powers, who called the Conference, proceeded to make arrangements for completing the work of the Conference. At the conclusion of yesterday'a meeting a communique was issued stating that Mr Mac Donald would report on the position resulting from the FrancoGerman conversations. A cloud was cast over the conference when Captain von Papen's version of Tuesday's conversations was published to correct tho allegedly misleading reports in the French Press. In the course of the German Chancellor's announcement it was stated that Mr Mac Donald had asked Captain von Papen whether ho could not do something to bring about a final solution. The German Chancellor stated that be replied as follows: —"The confidence of the world can only be restored if the victorious Powers could decide to remove the discriminations contained in the Treaty of Versailles. If in this manner German equality and security were re-estab-lished, the Chancellor could envisage the possibility of Germany participating in a general effort towards the reconstruction of world trade in the form of a contribution, which presupposes, however, the re-establishment of the economic balance of Germany." Publication of this document created lively interest in Lausanne, and gave rise to many unfavourable rumours. Captain von Papen and M. Herriot had further conversations and Mr Mac Don aid met them in a further attempt at mediation.

Signor Dino Grandi (Italian Foreigi. Minister) also attended, and later the four statesmen left tho hotel anti strolled along the lakeside to the Chateau d'Ouchy, where they wer<joined by the delegates of Japan and Belgium. At the meeting of the representatives of these six Power*, which followed, general consent was secured to the setting up qJ; 3, committee of thirteen members, over which Mr Mac Donald was to preside, to draw up a plan for the settlement of reparations. A second committee, including, tho Ministers for Commerce, will also be formed to study the economic crisis and the present tendencies in world trade. It is understood that _ the work of the Conference will continue, although the heads of the delegations for the present will be absent from Lausanne. Mr Mac Donald is returning to London to confer with his Cabinet colleagues, who are going to the Ottawa Conference. Captain von Papen is returning to Berlin and M. Herriot to Paris.

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