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Evening Post, Volume CXIII, Issue 1, 2 January 1932, Page 11

COMING CONFERENCE

DEBT CANCELLATION

BRITISH OPINION

(British Official Wireless.) (Beceived 2nd January, noon.) RUGBY, Ist January. All the Powers concerned have now agreed to the British suggestion that the International Separations Conference should be held in Lausanne. . The proposal that tho proceedings should begin on 18th January has been accepted by all the Governments, with the exception of the French which, owing to pressure of Parliamentary business,'would prefer the 20th. ': ■ The opinion generally expressed in London is that unanimity upon the essential facts which the experts reached at Basle in their report upon the financial condition of Germany should provide a firm basis for co-operative action when, next.month, the Separation Conference assembles. The report, it is felt, has done much to convince .the nations that the problem is not merely one of Germany's finance, but that it has a vital bearing upon the prosperity of almost every country in the world. There is little doubt that British public opinion certainly would welcome a complete and drastic clearing up of the situation by the wholesale cancellation of debts, but it is recognised that without the active consent of the United States, which'is barred by the recent decision/* of Congress, this must remain outside the range of practical politics. Although the time, therefore, may not be ripe for the complete liquidation of inter-governmental liabilities, it is held that the forthcoming conference will have within its power the restoration of a measure of the confidence which is so badly neetled, and may .well.' achieve something more -than, a mere interim solution. • "The Times" says: "What is needed is a settlement which even if it cannot be regarded as final, will at least bring the European Powers a long step nearer to stability.. Such a settlement implies at least two conditions—an adequate moratorium, and the scaling ;down of Germany's further liabilities to a figure which will leave no doubt as to her capacity to pay without creating too much disturbance to her exchanges. Without these, essential safeguards it will scarcely be possibles envisage_ any return of confidence to Germany, either now or in the future. Once that is accomplished, the whole problem.of reparations may come to be viewed in-a different perspective on the other side of the Atlantic. It must in time become clear to all the world that the capacity of the other debtor countries to meet their obligations rests, in the last resort, upon the' stability,'of Germany to provide U)em with the .means of payment." • • .-■'■■:■.:]■'■'■ ■