CLASH AT GENEVA.

New Zealand Herald, Volume LXVIII, Issue 20875, 18 May 1931, Page 9

CLASH AT GENEVA.

SEANCE AND GERMANY. AUSTRIAN CUSTOMS UNION. ATTACK BY M. BRIAND. PR. CURTIUS RETORTS. TAINFUL SHOCK CAUSED. i . By Telegraph—Press Association—Copyright. (Refceived May 17. P. 5 p.m.) GENEVA. May IG. A short and bitter encounter between the French Foreign Minister, M. Briand, and tho German Foreign Minister, Dr. Curtius, indicates that thero is marked tension between these two countries. Dr. Curtius has informed the Commission on European Union that Germany is determined - to carry out the Austro-Ger-man Zollverein (Customs Union) and has invited European co-operation. Thirteen currencies and nine customs zones, he said, had been created since tho war, involving 13,000 miles of additional tariff walls. J[. Briand denied that tho customs was the whole problem. France could not accept Dr. Curtius' suggestions for an illegal customs union. Dr. Curtius, amid excitement, angrily replied that it was for tho council to decide whether the zollverein was legal or illegal. Tho between M. Briand and Dr. Curtius caused a painful shock. Dr. Curtius' actual words inviting co-opera-tion were: " I am prepared to partake in nn exchange of views with all countries, large or small, upon tho possibility of establishing a customs union. I beg you seriously to examine the invitation."

M. A. F. Poncet (France) fired a series of broadsides at tho Austro-German scheme. Ho said it. could only be effective if it led to a political union. Customs unions were calculated to arouse uneasiness and to create rival groups and promote economic warfare.

M. Poncet then presented a project for providing an organisation of the European markets for the disposal of surplus wheat, the development of economic and industrial cartels and an agricultural bank for European loans, under the aegis of tho League of Nations.