GERMAN CRISIS

Gisborne Times, Volume LXXII, Issue 11494, 23 November 1931, Page 7

GERMAN CRISIS

.C-ANfcOT PAY WAR DEBTS. REQUESTS YOUNG PLAN COM- - MITTEE TO REASSEMBLE*. Hoover moratorium gave LITTLE RELIEF. (U PA. bv Elec. T«L Copyright) .I.*-’ ” LONDON, Nov. 20. The German Ambassador handed in at the Foreign 'Office a memorandum applying for tho convocation of the special advisory committee under the. Young Plan. , The memorandum points out tnat. Germany's economic and financial situation were very seriously endangered before June, at the. beginning of which the Government decided, despite most rigorous reductions hi State expenditure and repeated increases in taxation, that it. was tinable to continue the payment of annuities. It recalls the hopes that the Hoover Plan would cause a decisive turn in the world crisis, but this hag nob been realised. The London Conference and Baslo standstill agreement were merely a preparatory review' of Germany’s position. Germany’s situation had since reached extreme tension and tho Government accordingly had decided to exercise its initiative whereby it could apply to the advisory committee, provided the committee “may come in good faith to tho conclusion that Germany’s exchange and economic life might, be seriously endangered by the transfer in part or full of the postponable portion of tile annuities.” Germany is bound to declare these terms do not do-justice to the actual position, because since the Young Plan conceived them, theposition throughout the world, and particularly in Germany, has boon altered by the unparalleled crisis. The memorandum points out that the committee must examine the whole problem, particularly Germany’s private indebtedness. The ethics of the position must be settled in sufficient time before file end of February to enable an agreement between foreign creditors and German -debtors. Therefore it is necessary for the committee to meet without delay and decide as quickly as possible.