MONDAY JUNR 20, 1932 JUNE 20, 1932 EUROPE’S PREDICAMENT

Nelson Evening Mail, Volume LXVI, 20 June 1932, Page 4

MONDAY JUNR 20, 1932 JUNE 20, 1932 EUROPE’S PREDICAMENT

THE gravity of the economic situation in Europe is clearly revealed by the decision of Britain, France, Italy, Belgium, and Japan, whose delegates are assembled at Lausanne, to extend the war-debt moratorium during the sitting of the Conference, thus suspending payments which otherwise would fall due on Ist July. This step is taken to relieve Germany, whose Chancellor had declared that payments in reparation by his country cannot be made. Simultaneously the British Chancellor of the Exchequer made a statement which explains why such a step is necessary. In' part, lie said : It was the British opinion that the vast inter-governmental obligations could not be exacted without disastrous consequences on the whole economic fabric of civilisation . • • Britain was so convinced that only by radical measures could they restore that confidence without which the wheels of credit could not revolve freely. ... I he real problem they bad to consider was not the capacity of one country or another to make payments, but whether (ho making of such payments and eVen the uncertainty about the future created by the liability to make them, constituted a

standing menace to the maintenance

of international trade. But it was Signor Alussolini, who, speaking at Romo to Lho correspondent uf a London journal, described the situation most dramatically, thus:

Europe is drifting to disaster and Bolshevism. Democracy is nothing.

The people are nothing and can do nothing. The people of every country are weary of words. They need men of action. They require saviours. The era. of war-debts and reparations is over, and belongs to the buried past. If Germany says “No,” Italy will say

“No.” Incidentally Signor Alussolini said that England (by which, of course, lie meant Great Britain and the British Empire) and Italy are. the only two barriers against the Bolshevisatiou of Europe; because “both are united and disciplined." That would seem to leave out Franco which, we venture to say, is a strong bulwark against Bolshevism, because every French landownei, and there arc millions of them, upholds the individualistic principle in respect of property, and would oppose Bolshevism to the death. But the situation is clear. The Powers, whoso delegates are assembled at Lausanne, have acted as they have done in relation to the moratorium, in order to give Germany the chance to hold herself together, and so weather the economic storm which is sweeping over Europe and the whole world. It is to be noticed that it is Great Britain who leads this movement in support of Germany, and that the other Powers have followed her. Even France, whose statesmen might he expected to object to any further extension of the moratorium which was granted to Germany in respect of reparations, has agreed, and therefore it is evident that Great Britain’s influence at Lausanne is very great. This unity of the Great Powers of Europe cannot but have a decidedly beneficial effect oil the economic situation in that Continent, for it will strengthen Germany and other nations of Central Europe to put forth all their strength to overcome the difficulties which beset them. In Germany, it is to be expected, the aged President and bis vast following (which now includes the powerful organisation of Herr Hitler) will bo encouraged to put forth all their efforts to save their country from economic collapse, and all Europe will wish them, success, since the economic and political collapse of Germany would open the way for the Bolshevists to invade Central and Western Europe.

How will the United Stales’ Government- view this extension of the moratorium in Europe? The European countries which have been receiving reparations from Germany arc, in every case, if we remember rightly, debtors to the United States. True, a. few years ago President Hoover proclaimed his Government’s willingness to a year’s moratorium in respect of the payments of war-debts to America. Will he be willing to make an extension of that moratorium, in conformity with the extension agreed to by the European Powers fit Lausanne? It may be expected that those Powers have not acted withoutfirst assuring themselves of the United States’ approval, and it is to be anticipated that the Government at Washington ‘will endorse their action. Signor Alussolini is of the opinion that wardebts and reparations should be cancelled outright. There is no distinct sign that the Congress of the United States would endorse such a policy in relation to Europe’s war-debts to America. That Congress could not very well refuse an extension of the moratorium, but it will bo surprising if it agrees to cancellation. It may be expected to afford every possible temporary assistance to European debtor-nations, because if they were to collapse financially and economically, America would never receive payment. It may he expected, therefore, that not only -will the Americans endorse the action of the Powers at Lausanne, but that they will afford further assistance if there is reason to think that by so doing they will assure the ultimate return of the vast amount of capital which they have sunk in Europe.