Manawatu Evening Standard. THURSDAY, APRIL 21, 1932. WAR DEBTS AND REPARATIONS.

Manawatu Standard, Volume LII, Issue 120, 21 April 1932, Page 6

Manawatu Evening Standard. THURSDAY, APRIL 21, 1932. WAR DEBTS AND REPARATIONS.

Rree from the care and responsibilities of office, Sir Austen Chamberlain has addressed a striking- message to the nations of the world. Its keynote is the interdependence of each—“the policy of each for himself and the devil take the hindmost has gone past’’—and Sir Austen says bluntly that unless the world stands together “we shall fall one after another into a common pit of misery and decay.” His words will be heard throughout the world, but will they be heeded? The statement comes at a timely period in post-war history. The Disarmament Conference does not appear to be making headway; in six weeks’ time the Powers immediately concerned in the reparations problem will be meeting in Lausanne, there once again to investigate Germany's ability to pay, and the Hoover Moratorium will expire within a very short time. Germany has stated she cannot make any more reparation payments and will press for their abolition, but France is insistent that the money should be paid. The Hoover Moratorium was accepted as evidence that the United States was abandoning its traditional policy of isolation from Europe, but Congress and American opinion are distinctly unfavourable to prolonging it, and at the moment it seems clear the United States is resolved to remain isolated from Europe. But, as Sir Austen Chamberlain _ says, and his message is pertinently addressed to the United States, Americans, Englishmen, and Europeans must remember that they are also citizens of the world. “Does the United States yet recognise as Europe does the stronger desire for agreement and co-operation,” he asks, and warns Americans that if Europe finds her salvation in mutual sacrifice the demand will be made of them to be “not less unselfish and farseeing.” Frankly and in outspoken manner Sir Austen deals with the question of war debts. His words should go straight to the hearts of Americans, even though addressed to a world-wide audience. It will be agreed with him that there is “no cure for the evil from which the world is suffering unless war debts are dealt with simultaneously in the same spirit as reparations.” Wisdom and understanding, it is hoped, will be given to the American people. The references to _ war debts are particularly pertinent at this juncture. Mr Andrew Mellon, the new United States Ambassador to Great Britain, comes from an Administration that is hostile to their cancellation, and it is reported that he has made this matter plain in official circles in London. Professor Oliphant, of Melbourne, who has been lecturing in the United States, describes that country’s attitude as stupid and illogical, as it has cornered the

gold supply and after making goods the only form of international payment has crippled its debtors with a high tariff wall. Another considered statement on the subject of debt cancellation was given by Mi* Rupert Beckett, chairman of the Westminster Bank, at its annual meeting in London. The Congress of the United States, he pointed out, had effectively checked Mr Hoover’s internatioanl aspirations and that “great creditor country has moved with alarming rapidity back towards the policy of isloation which was first so emphatically manifested in the repudiation of President Wilson by his people.” On the European side of the Atlantic France maintains her policy of reparation payments from Germany, whose ability to pay has “depended largely upon the constant flow of American investments and now finds that the flow has ceased entirely.” Britain, Mr Beckett says, has nothing to be ashamed of in the matter. She has so far paid away nearly £200,000,000 more than she has received, and into the “reconsideration of this problem, which economic forces have thrust upon the world, our , country undoubtedly enters in a strong position and with a clean record.” Mr Beckett warns the nations that elimination of the war debts and reparations would not enable all the nations to start from scratch. “There are some which have all to gain and nothing to lose, and others which have directly nothing to gain and all to lose.” Great Britain, he adds, stands between these two extremes. If both sides of the account are expunged, then Britain’s position will be unchanged and the colossal internal debt and burdensome taxation will remain while certain of her commercial and . industrial competitors will have secured relief from their comparatively light obligations. This emphasises the delicate nature of the problem, but Mr Beckett believes that in cancellation lies Britain’s only hope. There is accumulating evidence that the nations will very soon be called upon to finally solve this great question. Then, it will be hoped, “wisdom and understanding,” of which Sir Austen Chamberlain speaks, will be given to the American people.