REPARATIONS PROBLEM

Evening Star, Issue 20999, 13 January 1932, Page 9

REPARATIONS PROBLEM

THE ATTITUDE OF GERMANY POSSIBILITIES DISCUSSED Pres« Association—By Telegraph—Copyright. LONDON, January 12. The Berlin correspondent of the ‘Daily Telegraph’ says: “Inability to pay within a calculable time will be Germany’s case at Lausanne. While not openly repudiating the Young Plan, she will refuse to agree to any provisional settlement or the fixing of a date for the renewal of reparations payments. The opinion is expressed that the conference, failing to reach a decision, will adjourn for some time. Meanwhile the French and German elections and further diplomatic discussions may change the situation, and it is even possible that Germany’s creditors may combine in a joint declaration that owing to Germany’s attitude they cannot themselves meet their obligations to the United States.”

FRENCH CREDITS TO GERMANY BASLE, January 12. Although it is not suggested that France will refuse a renewal of her credit to Germany, it is regarded as unlikely that it will be granted automatically without explanation. M. Moret, at a meeting of the Bank for International Settlements, significantly said he could not forestall the action of his governing body, which, as a matter of fact, had not considered the matter, but personally he could not in the present circumstances contemplate a longer extension than a month. ABOLITION URGED MILAN, January 12. A strong article advocating the abolition of reparations appears in the newspaper II Popolo d’ltalia,’ which is closely associated with Signor Mussolini./ The papesr says it is no exaggeration to say that Europe is moving towards an abyss. WHAT AUSTRALIA STANDS TO LOSE CANBERRA, January 12. If Germany cancels her reparations Australia will lose £BOO,OOO a year for thirty-two years. The Commonwealth so far has received as reparations £5,500,000, most of which has been added to the National Debt Sinking Fund. BRITISH CABINET CONSIDERATION (British Official Wireless.) RUGBY, January 12. (Received January 13, at 11.30 a.m.) The Cabinet meeting to-morrow will be devoted to reparations and disarmament problems. The report of Sir Leith Ross on his conversations with the French Finance Ministry will he available. Mr MacDonald to-night discussed the reparations issue in light of the Basle report with Mr Neville Chamberlain, Sir John Simon, and Mr Walter Runciman. " WIPE THE SLATE CLEAN " ‘ WIDELY QUOTED ARTICLE. LONDON, January 12. (Received January 13, at 9 a.m.) An article in * Popolo d’ Italia,’ which is widely quoted, and which is attributed in some quarters to Signor Mussolini himself, refers approvingly‘to Mr Shaw’s Liverpool speech. The writer states that he hopes that the Lausanne Conference will end. by wiping the slate clean of the war’s tragic balance-sheet. ■*

■ [Speaking at a luncheon at Liverpool on the occasion of the launching of the Strathaird, the Hon. Alexander Shaw spoke impressively of reparations and war debts, mentioning that he had to be cautious as a director of the Bank of England. He said that it should never be forgotten that while America remitted 18 per cent, of Britain’s war debt liability, Britain as creditor had forgiven the Allies 70 per cent, of their war debts. Britain in old wars frequently granted subsidies to her Allies, not as a loan, but as a free grant. In the Great War, where an American shell was fired by American artillerymen from American guns the United States did not charge against the Allies either her soldiers’ pay or the cost of the gun or shell, but where an American shell was fired by a British or French soldier it created a gold debt duo to the United States. The same extraordinary rule held between all the other Allies, and never in history was lopsided commercialism so misapplied. He did not believe that the masses of any country thought then about repayment or wanted it; they gave their money, their energies, and their lives for the common cause. He paid a tribute to America’s part in saving the freedom .of the world, and he said he could not imagine that she would now insist on a course which would postpone the recovery of Europe, and, indeed, of the whole world. He described the problem as a twofold collection of transfers. The nations were confronted with the fact that there was not enough free gold in the world to meet the bill for reparations and war debts, which must, therefore, be paid in goods and services. The total value of these goods spread over fifty years, with which to pay America if she insisted, would amount to the equivalent of £4,500,000,000. This continual drain of goods, besides being unwanted, was dislocating her own production and impoverishing America’s foreign customers. Ae regarded the money markets of the world the symptoms were those of a general malaise, punctuated with panic, and an atmosphere of menace hung over Europe. Distrust gave rise to armaments, and these to more distrust and stagnation of industry. It was no exaggeration to say that the economic and social structure of Europe was daily moving nearer a precipice. Europe was in a position where willingness to pay, however admirable, was no longer relevant. “ The blunt truth,” ho said, “is that if things go on as they are going the choice will simply be between repudiation and chaos. May I suggest a, healing message; spoken

long ago, * forgive ns our debts as we forgive our debtors.’ These words teach us a wise and the only practical economic policy,” He had spoken plainly because these were no times for false and easy optimism.]

AT EVERYBODY'S EXPENSE

SELFISH FRENCH POLICY

GERMAN CONSUL’S VIEW,

[Per United Press Association.] WELLINGTON, January 12. In the opinion of Mr W. Penseler, German Consul in New Zealand, who returned to-day from a trip to his homeland ami to Austria and Switzerland, the solution of European difficulties and troubles lies in the attitude of the United States of America to France. Unless the former nation, which was the only one big enough and powerful enough financially to do it, stood up to France and opposed its present policy of benefiting itself at the.expense of every othir nation endless trouble would ensue.

“ There is one nation in Europe—it shall be nameless —which by its tenacity of purpose and astute diplomatic cleverness has been very successful for itself at the expense of everyone else,” Mr Penseler said. “It is the father of all the obstacles, and the question to be decided is: How long will it be allowed to impose its will on the world?” Mr Penseler said he thought the answer to this question would be supplied at the forthcoming disarmament and other conferences to be held in Europe. It was very, apparent, though, that Europe’s only help lay in the United States. Whatever happened, Mr Penseler thought that Germany would pull through from its present very . -eat troubles. It was suffering such great hardship that many people were becoming desperate, but the majority were suffering in' silence. To his mind, however, the people were finding comfort in their realisation of the true values of life. Their exercise of Spartan economy had brought about —it was hard to express it exactly —a kind of spiritual uplift which gave them great comfort, in spite of their manifold troubles and difficulties. This was so definitely in evidence and so general among the people that there was a good deal upon which to base the belief that in the course of time Germany would evolve now ways of economics, politics, and even religion. In Mr Penseler’s opinion it was most likely indeed that Germany would give a now lead to the world.

Speaking of Germany’s attitude towards France, Mr Penseler said that his country’s desire was to bring about a state in which the two peoples could mutually respect each other and leave each other alone. It was unlikely, he thought, that the two peoples would ever fraternise to any extent, ns their ideas and general ouUook were so definitely opposed.