EUROPEAN CONGRESS

New Zealand Herald, Volume LIX, Issue 17984, 9 January 1922, Page 5

EUROPEAN CONGRESS

SUMMONED BY ALLIES.

ALL THE POWERS INVITED. ECONOMIC CCistEF.EK'CE. INCLUSION OF RUSSIA. LLOYD GEORGE'S VICTORY. By Telegraph—Press Association —Cop?rigV*. (Received 4.?5 p.m.) A. and N.Z. LONDON, Jan. 7. The opening session of the Supreme Council now assembled at Cannes was held on Friday. Aji official communique states that the Council unanimously resolved that all European Powers be invited to send representatives to an economic and financial conference to meet in February or March, and that the Prime Ministers of everv nation should attend if possible. The Council is dividing into two commissions to study firstlv Germany's reparation and secondly Europe's economic restoration. S'gnor Bonomi (Italy), supported Russia's inclus'on in anv restoration scheme but stipulated that she must guarantee no foreign propaganda. It is expected that the Economio Conference will meet at Genoa early in March. The initial decision of the Supreme Council has occasioned surprise as it indicates Mr. Llovd George's victory over French and Beleian views regarding the agenda. M. Briand (France), and M. Thenuis (Belgium) demanded that the exaction of reparation oucht to he the first consideration, but Mr. Lloyd George, supported by Italy, regarded consideration of the whole European economic situation as an essentia] preliminary, holding 'that reparation could not he discussed apart therefrom, As M. Bnand presided, it was expected he would immediately press the French view, but, apparently as the result of a conference and private parleys, M. Briand simply welcomed tha delegates. Judgment and Execution. Mr. Lloyd George immediately followed. He reviewed at length the economic situation, and declared that it was the Allies duty to bring about peace and restore the markets of Central Europe. He pointed out the deplorable condition of Russia and heavily burdened Germany, who, before the war, derived the bulk of her prosperity from Central Europe. Goodwill :'JI round was essential if Europe's reconstruction were to succeed. He therefore proposed a European economic conference, embracing Germany and Russia, to consider the whole economic position. They must insist on Russia ceasing her propaganda, recognising her external debts, and undertaking not to attack her neighbours. Similarly the latter must undertake not to attack Russia.

ivir. Lloyd George, in the course of his speech, said: "It is alway6 a very invidious task for any statesman of any Allied country which suffered much at. Germany's hands to put in a word for moderation and restraint when it is proposed to impose penalties on Germany for nonfulfilment of her obligations. People say, ' Youi are sacrificing Britain to Germany, France to Germany, Belgium to ! Germany.' Nevertheless, we ought to have courage to look the facts in, the face. Germany must pay to the utmost of her capacity; justice demands it; but you must consider what every lawyer considers when recovering damages, to what extent can judgment and execution be made effective. You may drive things so far that you get nothing out of your verdict.

Saving Germany from Bolshevism. ''When Britain, through her representatives, puts in a plea for not rushing Germany into anarchy and bankruptcy, we aro not doing that in the interests of Germany but in the interests of tbe world. You should not force Germany into the same conditions into which Russia was forced, with this difference, that you will have anarchy among a much more efficient people;, you will have extreme doctrines under the leadership of a very powerful race. That is why Britain, in spite of misrepresentation at home and abroad, has advocated not compassion, not consideration for I Germany, but ordinary common prudence. " It is clear that reparation will not ["be recoverable unless there is improvement in the general condition of Europe. The mere fact that Germany has got great internal wealth in lands, forests, railways and factories is not conclusive evidence of her capacity to pay large sums outside her frontiers. Her capacity to pay permanent charges outside must depend on the extent of her foreign trade. So the general condition of Europe has a direct bearing on roaration. " Germany's pre-war trade was largely with countries on her eastern and southern frontiers. These countries have collapsed industrially and commercially. They contributed to the general wealth of the world, which circulates' through the veins of commerce. The fact that they have ceased to make that contribution weakens and attenuates tho industrial blood of the commercial countries of the world. It is vital for the general well-being of the world that an effort be made to restore these countries. Unless the Allied countries undertake that task, I do not know who will.

Shaking Hands with Assassins. " When you begin to talk about the restoration of Russia, Hungary, and other countries, you encounter a very natural prejudice existing in every civilised breast against the Bolsheviks. There is a much greater danger from Bolshevism if we fail in the task of reconstruction than from propaganda which the Bolsheviks undertake. You have to deal with Governments whose methods you do not approvo. If we insist before shaking hands with the Governments of the North, South, East, and Weet upon seeing their hands clean I do not know how much business will be done in the world. I have heard of agreements made in Pa-Is with murderers of Armenians. I rerjember representatives of Turkey admitting that millions of Armenian Christians had been slaughtered, ravaged, outraged, and tortured. Yet I have known of Governments that did not hesitate to make agreements with people who took a leading part in the direction of those outrages and murders. I have seen representatives of Governments of this kind at Paris and London. Wo all met them and discussed tilings with them because we had to make peace fn the world " You can say, 'Every Government that is guilty of anything that is an outrage upon civilisation we strike off our list.' There is something be said for that sort of exalted attitude, but there is nothing to be said for greeting one assassin on your right and refusing to greet an assassin on your left when he offers his band. There is no advantage if you shako hands with infamv in the East and refuse to do it I with infamy in the North." [ "Air. Llovd George's speech profoundly impressed the Council, which agreed to his motion in principle and .proceeded ,to discuss guarantees which should be demanded frpm Russia..