IMPORTANT DEVELOPMENTS

Nelson Evening Mail, Volume LXVI, 18 June 1932, Page 7

IMPORTANT DEVELOPMENTS

BRITAIN’S POLICY STATED RUGBY, 17th June. There were important developments when the Lausannue Conference entered upon its work to-day. Mr MacDonald announced the decision of Britain, France, Italy, Belgium and Japan to suspend whiie the conference is sitting payments in respect of war debts and reparations, certain of which fall due on Ist July in order to press to tho earliest possible completion of the work of the conference. The declaration was heartily welcomed by Ilerr Von Papon as the first visible proof of tho intentions of flic Governments concerned to alleviate the task of the conference.

Britain’s policy in regard to war debts and reparations is firmly stated by Mr Neville Chamberlain. Press reports state that lie declared it was tho British opinion that vast inter-governmental obligations could not be exacted without disastrous consequences on the whole economic fabric of civilisation; and added that Britain was so convinced that only by radical measures could they restore that confidence without which the wheels of credit could not revolve freely, that they would be prepared to take their shale in a general wiping of the slate, providing all other Governments concerned would do the same. They would not hesitate to make further sacrifice of their legal claims if by so doing they could aid the common cause, and lie was convinced that in that spirit only could tho problem before them be successfully solved, and tho first step taken towards a return to normal conditions. The real problem they had to consider was not the capacity of one country or another to make payments, but whether the making of such payments and even tho uncertainty about tho future created by the liability t’o mako them, constituted a standing menace to tho maintenance of international trade.

M. Herriot urged that the _ modification of the regime of economic restrictions would more surely achieve their purpose than summary measures. The heads of several other delegations spoke, expressing readiness to collaborate in the rehabilitation of the economic situation in Europe. The Conference adjourned till Tuesday. The heads of delegations of inviting Powers meet on Monday.