REVIEW OF WAR DEBTS.

New Zealand Herald, Volume LXVIII, Issue 20893, 8 June 1931, Page 8

REVIEW OF WAR DEBTS.

, The renewal of rumours that the whole question of war debts will shortly be reopened is somewhat strangely circumstanced. On their arrival in England, the Chancellor and the Foreign Minister of Germany have denied a report from Berlin that their Government is considering suspension of payment of interest on foreign loans and have said that Germany will meet all such obligations. In their absence, President Ilindenburg has signed new financial decrees expected to wipe out the national deficit of £62,000,000 and create a small surplus. These things indicate an intention on the part of Germany to carry out her foreign obligations. On the other hand, the evident experience of hardship in Germany, likely to be accentuated by the increase of taxation and the reduction of pensions, gives colour to the idea that Germany will shortly prefer a request to be allowed a temporary suspension of reparation payments on account of economic depression. .Tust where the truth is to be found among conflicting rumours cannot yet be said, but the significant fact is that the anticipation of such a request from Germany is being made, in the United States, the basis of a somewhat definite effort to have the inter-Allied war debts reviewed. If this question is to be reopened, the first move should be made by the United States. There has long been existent and vocal there a desire to see the inter-Allied war

debts wiped out. Those Americans who urge this have said and are saying harder things about their country's cupidity than have been uttered in any of the debtor countries. But they have met with little official sympathy. Whether Mr. Borah can make use of the Foreign Relations Committee of the Senate to press successfully for a review of the question is to be doubted. Apparently, he intends to attach this issue, if possible, to those to be considered by the forthcoming disarmament conference. It is outside the draft treaty to be submitted there. Yet, as this has a financial aspect, consideration of all war debts may be deemed relevant.