GERMANY AND COLONIES

Greymouth Evening Star, 31 May 1937, Page 7

GERMANY AND COLONIES

MINISTER ADMITS “BLACKMAIL.”

[BY CABLE —PRESS ASSN. —COPYRIGHT.] PARIS, May 29. Dr. Schacht (German Minister for National Economy), speaking to the Franco-German Society, said: “The newspapers have criticised Germany because she always asks and never offers. I agree. The poor can do little more than ask. But Germany does offer a firm guarantee of European peace in return for a reformed League of Nations. She is also prepared to discuss armaments. Germany is accused of blackmail in making her offer conditional on colonial outlets. I plead guilty. It is blackmail; but peace must be strengthened even if blackmail is used.”

French personalities who were present were astounded to hear “blackmail,” probably used for the first time in history, thus proclaimed as an instrument of international goodwill. But it is considered that Germany is not as interested in colonies as Dr. Schacht’s speech suggests. On the contrary, she is inclined to drop the subject to conciliate England, though for internal purposes the subject of colonies will still lie raised in orations. The tangible result of Dr. Schacht’s visit has been the arrangement of a Franco-German trade agreement. Germany accepts France's refusal to agree to a reduction of the interest rate on loans under Dawes and Young plans, but she agrees to air extension of reciprocal trade.