H.B. TRIBUNE MONDAY. JANUARY 25, 1932 AMERICA AND FRANCE.

Hawke's Bay Tribune, Volume XXII, Issue 35, 25 January 1932, Page 6

H.B. TRIBUNE MONDAY. JANUARY 25, 1932 AMERICA AND FRANCE.

With the exception of a slightly cheerful note struck in the fortnightly financial and commercial summary from London, it. cannot be said that to-day’s oversea messages received up to time of writing are of a very reassuring character. In the first place, we are told that the Lausanne Conference, from which we had been led to expect so much, has not merely been postponed, but has seemingly been finally and completely abandoned. From the outset its usefulness was very largely discounted by the curt refusal of the United States to take any part in it, or even to admit that the questions of German reparations and inter-Allies war-debts must necessarily be considered in their bearing one upon the other. Then arose such differences in the German and French points of view regarding reparations as to give but little promise of any ultimate agreement. The eventual extinguisher came when the German Chancellor flatly declared that his country would entertain no suggestion short of cutting out. reparations altogether. Under these circumstances there was clearly no good purpose to be served by holding the conference. On top of this very distinct disappointment we continue to have news from the United States of a financial crisis steadily increasing in acuteness and so affording but scant, hope of relaxation of American claims with respect to wardebts. Then we have the dissensions that, have arisen in Great Britain’s National Government; over the tariff question. .From the Far East we hear of further

troubles in India and of incidents that have served to render all the more tense relations between China and Japan already strained to pretty near the breaking point, Finally we have Nature playing her part in adding to the general confusion by setting Guatemala.) volcanoes in eruption. Thus taken altogether our. cable page to-day presents anything but a picture glowing with prospects of spec. l relief for the world from the economic ills that sorely afflict it. However, we may perhaps take it that this gloomy concatenation of events means “the darkest hour that heralds the dawn.” It is, of course, with the economic aspect of affairs that we out here are most intimately concerned, for until this clears on the other side of the world there is no very great chance of any marked recovery on this. In this respect it would seem that at the moment the world’s destinies lie very greatly in the hands of America and France, and they are showing but small signs of working together to any generally beneficial end. America will not give way on the question of war debts, even to the extent of enlarging the moratorium, while France is almost as obstinate upon the question of reparations. Thus it would seem, on the face of things, as if the so friendly “conversations” that recently took place between the American President and the French Prime Minister were not. likely to yield anything mueii more than Dead Sea fruit. Perhaps, however, we may read into what Senator Borah, chairman of the United States Foreign Relations Committee, has to say today some purpose that may work out. to broad international advantage.

As has recently been pointed here, ere would appear to be a fairly widespread impression that France has been deliberately setting herself to acquiring a position of dominance, both financi i! and political, among the nations of Europe. It is quite open for „s to assum that America, on the other hand, is now setting herself

ount'- ' g this so fl-r.rr imbition. Tn any event, taking Mr. Borah as speaking for his Government, it is obvious that America is seeking to throw upon France 1 responsibility of any European collapse that may occur, t'his, anyway, would appear to be a fair interpretation that may l>i given to his statement, vague and all as it may be, that “if France would put out a programme that : nts to the rebuilding . ' Europe the United States would be found extremely interested.” This, of course, has to be read in the light of his further words—perhaps a little difficult of substantiation--’mt “the. U “ 'd States has t since the world war hesitated to help when 1 clp was tO’-'-rds re d relief in Europe.” There is naturally some little suspicion of “bluff” in this—for America is deeply interested in keeping Gemany on her feet—and it ' ith considerable interest that we ■■hall watcu how it works.