THE INTERNATIONAL SITUATION

Nelson Evening Mail, Volume LXVI, 16 April 1932, Page 7

THE INTERNATIONAL SITUATION

FEELING IN GERMANY Dr. W. P. Morrell, of Dunedin, who now holds a university appointment in London—that of university reader in history at Birkbeck College writes as follows in a letter which was received from him by mail a few days ago. “One has the impression from the papers that things in New Zealand are as bad as ever. Here I believe they are slightly better, though .clearly the possibility of improvement is small until there has been some 'relaxation of tension on the Continent, and perhaps a turning of .the corner in the United States. People seem to think that the French are becoming less intransigent on the reparations question, largely because they themselves are at last feeling the pinch, >vith their export-trade slipping away‘ and their unemployment figures mounting up. So far as I can judge, the psychological effect of the cancellation of reparations on Germany would be great, and people would presumably be willing to invest money there again. Undoubtedly the Germans have shown great qualities of endurance, and there can be no question that public feeling in England at the moment- is more friendly to them than to the French. This is a natural reaction, but it- would be hard to say that the Germans are free of blame for their present situation. The fact is, I suppose, that about half Germany is really anxious for peace and quiet: the oLher half, the minority I should say among the older Germans but the majority among the voum. has convinced itself that Germany was shamefully treated at Versailles, and is determined to fight, if necessary, rather than submit to those terms permanently. But on the whole the Nazi leaders have become more moderate as power lvus come more nearly within their grasp, and one hopes that either the movement will decline after the loss of the Presidential election or that power will bring responsibility with it as it has done to'the-Fascists in Italy. Whether the Nazis get into power or not, however, undoubtedly recent events have forced the Slate to interfere more than pwer before in economic life, and one wonders whether it will ever, failing complete disaster, relax its hold. It would not be surprising, if the Germans are freed from reparations, to see them trying their hand at a Five Year Plan. There is a good deal of talk of planning even here, though no doubt it is laigclv clap-trap, apropos of tariffs and so forth. Most economists seem to think it is liable to make things worse rather than better, but whether that is so or not there is no sign of a reaction towards laissez-faire. Altogether, the situation is very obscure, and there is much less loose optimistic talk than there was at the time of the general election, lor example. It does seem that this country, instead of being in a peculiarly weak position as seemed possible a year or two ago, is really sounder than any in Europe with the possible exception of France; and the stolidity of the British people saved them from loss of nerve last autumn when ( ontinental Powers thought the trouble in the fleet was the beginning of a real disaster. But tariffs will not prevent them from suffering from the decline in international trade. ’