GERMAN SOLVENCY

Greymouth Evening Star, 4 November 1931, Page 5

GERMAN SOLVENCY

CAN IT BE MAINTAINED ? FRENCH PREMIER'S POLICY [OFFICIAL WIMLKSS.] RUGBY, November 3. Commenting on the return to Paris of M. Laval, the “Times,”, in a leading article emphasises the importance of the visit ; to America, following i that paid by M. Laval to Berlin, and says that Laval “knows precisely where he stands. He has a free hand, and is [going to try and make a lasting arrangement with Germany on the basis of existing treaties, whether. signed at Versailles or The Hague. He has, moreover, plainly, indicated that he intends to give due regard to the present economic crisis.

He agrees that Germany will certainly not be in a position in July next year to resume full suspended reparation payments. Even if Germany is able to raise and transfer, the money, the transaction would only further unbalance the monetary situation, and so it is now generally be-

ieved that the amount Germany will be asked to pay will be within : compass of. unconditional annuities, and that a large proportion of ’ it will be payable in kind. For that purpose, the joint Economic Committee arranged during the Berlin visit what should prove a serviceable medium* The first problem that must squarely be faced, and this really concerns Britain and the United States more closely than France, is how Germn solvency is to be maintained when short-term credits become due for payment. The success of any method must really depend, first and foremost, upon the establishment of FrancoGerman relations on a basis of mutual confidence. Insofar as that is the ata of M. Laval, he will have the cordial sympathy and support of British opinion, public and official. If M. Laval will develop proposals on broad constructive and not too ■ rigid lines, he may yet save the situation, which is daily becoming worse. The maintenance of German solvency is an essential condition of any concerted action for European reconstruction.”

FRENCH UNEMPLOYMENT. PARIS, November 3. The French Cabinet approved an appropriation of thirty millions sterling for the relief of unemploymentThe Confederation General de Travail, which is the .French T.U.C., estimates that more than a million are unemployed.