GERMAN POVERTY.

Manawatu Standard, Volume LVII, Issue 153, 31 May 1937, Page 7

GERMAN POVERTY.

CAN OFFER GUARANTEES,

BLACKMAIL FOR PEACE.

PARIS, May 29

The German Minister of Economy (Dr. H. Schacht), speaking at a meeting of the Franco-German Society, said that newspapers criticised Germany because “she always asks and never offers.”

“I agree,” he declared. “The poor can do little more than ask, but Germany does offer a firm guarantee of European peace in return for a re- 5 - formed League of Nations. She also is prepared to discuss armaments. “Germany is accused of blackmail in making her offer conditional on colonial outlets,” he continued. “I plead guilty. It is blackmail, but peace must be strengthened even if blackmail is used.” French officials present were astounded to hear the word blackmail used thus probably for the first time in history, and thus proclaimed as an instrument of international goodwill. They consider, however) that Germany is not as interested in colonies nsvDrj Schacht’s speech suggests. On tlie contrary, she is inclined. to drop tlie subject to conciliate England, though for internal purposes tlje subject of colonies will still be raised in. orations. ‘

One tangible result of Dr. Sehacht’s visit has been the arrangement of a 'Franco-German trade agreement. Germany lias accepted France’s refusal to agree to a reduction in the interest yate on the Dawes and Young loans, but agrees to an extension of reciprocal trade.