MORATORIUM

Evening Star, Issue 21005, 20 January 1932, Page 9

MORATORIUM

AN EXTENSION PROBABLE * " - NO FINAL SOLUTION YET Press Association —By Telegraph—Copyright, LONDON, January 19. According to a semi-official statement issued in Paris, Britain and France are on the point of an agreement regarding the desirability of a renewal of the moratorium for Germany for six or twelve months from its expiry in July. The feeling is being strengthened that a definite solution of the problem is not obtainable at present, especially in view of the elections in France, Germany, and the United States. Naturally America’s debtors, who are also creditors of Germany, will jointly, request identical treatment from the United States if a diplomatic agreement is reached on these lines at Lausanne. Attendance at the conference might become superfluous or it might he attended by experts only. M. Laval yesterday had a conference with Herr Hoesch with a view to securing Germany’s assent to this solution. It is stated in several quarters that Mr Barashy MacDonald may not go to Lausanne, partly owing to its diminished importance and partly to pressure of homo affairs.

AMERICAN VIEWS YOUNG PLAN THROWN OVERBOARD, WASHINGTON, January 18. Dr Bruening’s assertion that Germany is unable to make further reparations payments is viewed here as being promoted by political conditions in Germany, and apparently it came as no great surprise to the officials, since it had been assumed that such a declaration would be made at the Lausanne Conference, if not before. There has been little indication that the probability of a cessation of German reparations payments would alter Congress’s opposition to the cancellation or reduction of European debts to the United States. The serious consequences of a general default are recognised, but nevertheless ’it appears that the general disposition is to let the European nations default if they must, rather than have the country make another gesture of “liberality” toivarda Europe. It is contended, however, that reparations default by Germany will not necessarily mean default by all the nations in their war debt payments, Mr J. W. Gerard, a former Ambassador to Germany, asserted that the tremendous tax burden which has fallen upon Europe makes it seem unlikely that there will be any further payments of war debts or reparations. “The great thing we must guard against is excessive taxation,” he said. Mr Walter Lippmann, a prominent journalist, in his column in the New York ‘Herald-Tribune,’ asserted: “Dr Bruening has taken a step which he cannot retrace. There can be no further question that Germany has renounced the Young Plan and the reparations clauses of the Treaty of Versailles. German credit is in such a state that it can no longer be as much injured by repudiating reparations as it can by continuing to pay.”

HITLER'S COMPLAINT

BERLIN, January 19.

Herr Hitler, in a memorandum explaining his refusal to agree to a prolongation of President Hiudenburg’s term by a vote of the Reichstag, attacks Dr Bruening, and argues that his regime has reduced Germany to insolvency and international impotence. FRANCE'S ATTITUDE DECLARATION BY M. LAVAL. PARIS, January 19. (Received January 2p, at 12.10 p.m.) M. Laval’s declaration marking the appearance of the new Ministry asserted that cancellation of war debts and reparations was a panacea without penitence, emanating from imaginative theorists who had not faced the facts. France would not accept solutions which were inadequate to solve the crisis and striking at her essential interests and rights. Sho had to fulfil a duty of probity towards the generation surviving the war. She would sacrifice no credit without a corresponding remission of her own debts. She had also the duty of prudence towards the future generation by subordinating agreement to justly balancing condition;! of production. The existence of such a balance would bo broken if after the crisis disproportionate fiscal and financial burdens handicapped Franco in international competition. France's policy was as was defined in the memorandum of July 15. SITUATION STILL UNCERTAIN FRENCH POLICY OUTLINED BY M. LAVAL. (British Official Wireless.) RUGBY, January 19. (Received January 20, at 11.30 a.ra.) The situation regarding the proposed reparations conference is still uncertain, although clarification is anticipated during the next day or t\yo as the result of exchanges between the Governments concerned.

To-clay M. Laval outlined the policy of the new French Government on reparations and disarmament to the Chamber of Deputies, and it is generally expected that ho will receive a vote of confidence. Meanwhile Press messages state that lie lias approached the United States Administration

through the American Ambassador in Paris regarding America’s attitude to a possible extension of the Hoover moratorium.

Washington Press messages state that if Europe draws up concrete plans to mc/t the present emergency the United States will give them careful consideration, but will not participate in the preliminary negotiations.