WORLD CRISIS.

Evening Star, Issue 20988, 30 December 1931, Page 6

WORLD CRISIS.

In a message from Washington to-day it is intimated that the United States had not been requested to take part, even unofficially, in the European Reparations Conference next month, and would not attend if asked. This was expected. America, sorely pressed industrially and economically, is vitally interested in the outcome of the proposed meeting, but her Administration takes the stand that the question of reparations is a problem for Europe alone, and only after the Western nations have settled it will the United States undertake to consider the effect of diminished reparation payments upon the debt question. , It is a pity that the Disarmament Conference cannot be held before the meeting on debts and reparations. If we are to believe the statements made from time to time by leading American politicians, the result of the Geneva gathering will greatly affect the attitude of the United States on the question of war debts. Prominent members of Congress hold the view that it would be unreasonable for America to cancel or reduce the debts owing to her while the European nations continue to spend huge sums on armaments. So far as the Disarmament Conference is concerned it does not present a very hopeful aspect at the moment, because of the attitude of France. To her the question, of national defence is an all-absorbing one, but there is the chance, in view of the straits into which the world lias been driven, that she may modify her views, and be prepared to make substantial concessions in defence expenditure. Senator Borah (chairman of the Senate’s Foreign Relations Committee) made some remarks this week that are sure to receive the approbation of a large section of tho American people. He said; “I can see no recovery in Europe until reparations are cut or eliminated in their entirety. For twelve years conferences have been held and readjustments made, but none has brought relief. If Europe cannot see its way clear to end reparations and drastically cut armaments tho United States had better como out of Europe and stay out. It will cost us something to stay out, but it will bankrupt us to stay in.” America had a great opportunity to do the magnanimous and generous thing when the Balfour Declaration was made on behalf of Britain. Had she accepted the offer tho world’s burden would have been sensibly eased, and she herself would have greatly benefited. An opportunity still awaits her, and possibly the logic of inescapable facts will determine a more clement policy in tho future. It was reported from Paris that the unanimous opinion of tho French Press was that the success of the conference depended upon tho United States, so that the decision in Washington will occasion regret in France. A British p’roposal that has been made is that a five-years’ moratorium should be granted to Germany, and that France should 1 abandon her claim to reparations as an inducement to tho United States to cancel the war debts; but so far France, adhering to her traditional policy regarding Germany, has intimated that she cannot see her way to give up reparations. Germany’s problem, said the Basle Advisory Committee’s report, is, largely

the cause of the world’s increasing financial paralysis, and it added: “ The only permanent hope of restoring confidence is the adaptation of reparations and war debts to meet the needs of the world upheaval.” He who runs may read, and it is not difficult to see the implications contained in these words. There are indications that France is relaxing her uncompromising attitude towards Germany ; but it does not appear that she is yet ready to grant concessions that would lead to a permanent settlement. The dangers are still acute, for, as the Loudon * Times ’ points out, “ a more moratorium, leaving the ultimate liabilities untouched, would simply lead to a still more dangerous crisis. That is why the British Government stressed strongly in its recent Note its desire for a permenent solution.” The hope of world trade recovery is based on the vexed question of war debts and reparations: The line taken by France in the forthcoming conference will have a momentous bearing on the issue, and so will the attitude in the coming year of President Hoover and his colleagues.