DEBTS OF THE WAR

Manawatu Standard, Volume IV, Issue 280, 27 October 1931, Page 7

DEBTS OF THE WAR

SWEEPING REDUCTIONS COMING? M. LAVAL AT WASHINGTON. HOPEFUL OUTCOME OF LEADERS’ CONFERENCES. (United Press Association—By Electric Telegraph—Copyright.) WASHINGTON, Oct. 25. The groundwork for sweeping reductions in German reparations and Allied war debt payments to the United States was laid during conferences concluded on Sunday by President Hoover and M. Laval, Premier of France.

Germany is expected shortly to take tlio initiative by asking lor relief from her enormous reparation burden. France is expected to co-operate in reexamining Germany’s ability to pay, and radical reductions are considered to be inevitable.

The United States is ready to do its share as a contribution to world stability. The reopening of debt questions is expected to follow immediately oil any change in reparations. The two leaders, ill a joint statement issued on Sunday, declared that tlie essential factor in the restoration of the normal economic life of the world rests on the gold standard in France and the United States. The statement disclosed that the national leaders canvassed the whole field of international affairs, and hope was expressed for tho success of the conference that will discuss the limitatiou of armaments at Geneva in February.

It was agreed by President Hoover and M. Laval that so far as intergovernmental debts are concerned, "we recognise that, prior to the expiration of the Hoover year of postponement, some agreement regarding them may be necessary, covering the period of business depression. As to the terms and conditions of this agreement, the two Governments make all reservations.”

The initiative for an extension of the debt holiday is left to the European Powers principally concerned. The statement says that the traditional friendship between the United States and France and the absence of all controversy between them render it possible and opportune for their representatives to explore every aspect of the many problems in which they are naturally interested. “Indeed it is the duty of statesmen not to overlook any means of practical co-operation for the common good,” the statement continues. “This is particularly true at a time when the world looks for leadership in relief from the depression which reaches into countless homes in every land. “The relations of mutual confidence between the two Governments has a most important bearing upon the speeding of the recovery we seek. We have engaged upon that mission with entire frankness, and we have made real progress. “We have canvassed the economic situation and the world trends in international relations bearing upon it; problems fronting tho forthcoming conference on tlie limitation and reduction of armaments; tho effect of the depression on payments under intergovernmental debts; the stabilisation of international exchanges; also financial and economic subjects. “Special emphasis has been laid upon the more important means through which the efforts of our Governments ca'n be exerted toward a restoration of economic stability and confidence. “Particularly are we convinced of tho importance of monetary stability as an essential factor in the restoration of normal economic life in the world, and in this the maintenance of the golu standard in France and the United States will servo as a major influence. “It is our intention to continue to study methods for the maintenance ot stability in international exchanges. In a separate statement President Hoover denies that ho proposed any revision of the Polish “corridor.

The Polish “corridor” is a strip of territory given to Poland by the Ireaty of Versailles in order to secure for i olanci access to the Baltic Sea, otherwise not available, because of tho existence, north of Poland, of tho independent Republic of Lithuania. The “corridor” cuts off from die rest of Germany a email portion ot Last Prussia, of which tho chief town is Komgsberg. FRANCE’S PACIFIC INTENTIONS. NEWSPAPER OPINION. Received October 27, 10 a.m. PARIS, Oct. 26. Le Matin describes the conversations between Mr Hoover and M. Laval as a victory' not for France, but for good sense. . Other newspapers stress the moral results of M. Laval’s visit and claim that the absurd legends about T ranee have been dissipated'. Nobody. can now doubt her pacific intentions. “Pertinax.” writing in the Echo de Paris, predicts that M. Laval will shortly summon an advisory committee of experts to examine the duration of the Hoover moratorium and Germany’s capacity to pay reparations. VISIT A FAILURE. GERMAN FOREIGN OFFICE OPINION. Received October 27, 11.45 a.m. BERLIN. Oct. 26. The Foreign Office regards M. Laval’s visit to Washington as a dismal failure. ! It is convinced that Senator Borah’s ! intervention frustrated even a partial solution of the reparations and war debts problem.