GERMANY AND LEAGUE.

New Zealand Herald, Volume LXIII, Issue 19390, 27 July 1926, Page 11

GERMANY AND LEAGUE.

THE WAY NOW CLEAR. RETIREMENT OF BRAZIL. SOME IMPORTANT DECISIONS. [from our own correspondent. ] LONDON, June, 17. On the evening before the League of Nations Council adjourned a memorandum which had been telegraphed by the Brazilian Government to the League was circulated. It contained two important sentences:— "Brazil resigns at this moment the nonpermanent seat she has occupied for seven years;" and "It will remain for her under the terms of Article 1 of the Covenant, to notify at an opportune moment to the secretariat her decision to decline the honour of belonging to the League; by so doing she will complete her act initiated to-day,." These sentences conclude a 15-page document telegraphed from Brazil. The statement begins by asserting that from the beginning there were differences between the "American Ideal" League and the organisation actually created. In the absence of the United States, there grew up "an unjust inequality and inferiority of America's position compared with Europe." Chile's proposal in 1921 to elect Brazil to a permanent seat would have, ended the anomaly of a whole continent being excluded." Eat "from this time the tendency toward exelusiveness began to be exercised against Brazil." The memorandum cites a letter sent by the Earl of Balfour and M. Leon Bourgeois "which should be compared with the new doctrine that only Great Powers should have permanent seats." The only sentence bearing upon Brazil's case is the general remark that "it ia advisable to provide for a future increase of permanent members." A s';W more vague reference to a possible increase is quoted from the League Committee's report. Speaking of the Geneva Protocol, the Brazilian telegram remarks that "the Britisli Minister for Foreign Affairs took the first opportunity of making reservations." "Why not make public any agreement concluded at the same time as the Locarno Pact ?" asks Brazil. "At the eleventh hour the theory that permanent membership should be confined to the Great Powers was evolved." "A stubborn will is more powerful in the League than the constitutional law by which it is governed," is another surprising suggestion. "Brazil's design was to bring the League back from the dangerous path." "The League of Great Powers, almost entirely European, in any event non-Ameri-can, which will now be created by irregular action, will be an entirely different organisation." Brazilian Delegate's Statement. Senhor Mello Franco made a lengthy statement, giving the history of Brazil's collaboration with the League and her reasons for claiming a permanent seat on the council. He concluded by reading the declaration of his Government. After his speech Senhor Mello Franco took up his papers and rose, as if to leave the council table, but waited until tie close of certain remarks by the president, when he again made as if to depart, but, noticing that Sir Austen Chamberlain was obout to speak, he decided to remain for the latter's speech. Sir Austen Chamberlain expressed the hope that the decision of Senhor Mello Franco and his Government was not final, for it would be a great blow to the League to lose such a valuablo member as Brazil.

Senhor Mello Franco, in reply to the appeals made by almost every member of the Council, said the words used by various members regarding Brazil would be appreciated in his country. Personally, he was not in a position to say anything definite and the decision rested with his Government. A third tiro© he gathered together his papers and prepared to leave, whereupon the president requested him to remain as he wished to make a statement, which was to the effect that the Council had decided to send the minutes of to-day's proceedings to the Brazilian Government. Removal of Obstacles. Previous to this the Spanish representative, Senhor Quer Boul, stated that his Government was now prepared to ratify the amendment to Article 4 of the Covenant relating to the constitution of the Council so as to maintain her capacity to belong to the Council by means of successive re-elections, until the time should come for the designation of Spain as a permanent member of the Council. The present situation, he added, prevented the presence of Spain at the election. So the veto of Brazil to the entry of Germany into the Council has disappeared and there is every reason to hope that nothing will now stand in the way of the formal admission of Germany into both League and Council and that the mischief of last March will be remedied in September. One other obstacle, a technical one, remained before the reorganisation of the Council could be carried out, and that was removed by a graceful act on the part of Spain. Her acceptance of a necessary amendment of Article 4 of the Covenant, without which Lord Cecil's proposals for the composition of the Council might never be made effective, cleared away the second obstacle. Amendments of the Covenant require the unanimous consent of the members of the Council, and certain features of the Cecil plan are held to amend the original Covenant of the League. The air has been cleared and the present prospect is that Germany will enter tha Council without the sumultaneous admission of others to permanent membership. Three Notable Decisions.

Three notable decisions were taken at the Council meetings. A sign of returning stability in Central Europe is the removal of financial control, both in Austria and in Hungary, as from the beginning of next month. Confidence is nowfelt that the sound financial methods introduced by the Commissioner-Gcaerals of the League will be maintained by the Austrian and Hungarian Administration, without foreign supervision. It was also decided to sanction a loan, of approxirnately £2.250.000 to Bulgaria for- the settlement of her refugees. | s "f the loan is to he spent on land, and on improving communications. Suitable securitv will be provided and foreign supervision arranged. Tho whole project • ♦!!« constructive principle which has SSfpSi high'lv satisfactory .► SU 'Se l nu?stfon e W redaction of armaments, M it was of 2? Covenant, appears to .^ av ®. A question of transit through Sarro temW i