PLIGHT OF GERMANY.

New Zealand Herald, Volume LXVIII, Issue 20924, 14 July 1931, Page 9

PLIGHT OF GERMANY.

DEMANDS BY FRANCE.

SUBMISSION REFUSED.

LONG CABINET MEETINGS.

B/ Telegraph—Press Association—Copyright.

BERLIN. July 12.

The German Cabinet has decided not to submit to the French conditions for the granting of credit, at least as far as stopping the construction of the second " pocket battleship " is concerned and the renunciation of the Austro-German customs union.

The decision was reached after lengthy sittings of the Cabinet, one of which lasted 32 hours, concluding at 3 a.m., the second being begun in the afternoon. The Reparations Committee, the directors of the Reichsbank and leading bankers met at the same time. The bankers were summoned to join the Cabinet's midnight sitting.

The Cabinet arrived at its decision owing to the feeling that it is supported by the majority of the people of Germany, who would rather see their country crash financially than see her submit to what is regarded as blackmail of the worst possible kind, which eventually would lead to a worse position than ever. Also it believed that France would soon bo making fresh and absolutely impossible demands.

ADVICE TO GERMANS.

WISDOM OF CONCESSIONS. NERVOUSNESS IN LONDON. (Received July 13. 9.15 p.m.) LONDON". July 13. The diplomatic correspondent of the Morning Post says the attitude in political circles in London is that Germany, being tho sole beneficiary of tho moratorium, ought to be prepared to 6ignalise her appreciation by offering concessions with a good grace. She would be well advised, says the writer, to postpone the construction of the " pocket battleship." As the moratorium will improve her economic position Germany may well let the customs union with Austria fall into abeyance for it has been an irritant to the rest of Europe since it was first mooted.

The London Stock Exchange is nervous and a further fall is likely to-day. Fortunately the Bank of England has very strong gold reserves, higher than at any time for three years, and further gold shipments are coming from Australia and elsewhere.

CRITICAL FRENCH YIEW.

ATTITUDE NOT SOFTENED.

STRONG PRESS COMMENT.

PARIS. July 12.

Germany's financial crisis is being watched by France with critical eyes. The French point of view has been in no way softened by Berlin's panic cries.

Le Temps says neither world opinion nor that of France will sanction further French sacrifices without an assurance that Europe can work in future with Germany in a condition of peace and security. Le Journal des Debats, in an editorial article which has caused something of a sensation, says: " Germany shook the confidence of Europe by announcing the imminence of tho crash, and Mr. Hoover completely killed that confidence by sabotaging the Young plan, thus enabling Americans to withdraw enormous sums from Germany. Mr. Hoover, therefore, is primarily responsible for the situation. All the wealth and power of the United States will not prevent us from saying this."

BRITISH EXAMPLE.

THIS WEEK'S REPARATION.

DECISION NOT TO CLAIM,

British Wireless. RUGBY. July 12. The letter addressed by the British Treasury to the Bank for International Settlements announcing the decision of the British Government to refrain from claiming any payments due from Germany on July 15 under the Young plan is the subject of favourable comment in the press. The Daily Telegraph says the difficult and anxious situation will be eased, not less morally "than materially, by the action which the British and Dominion Governments have taken in regard to the German reparation payments falling due on Wednesday.

This expression of relief finds an echo in most of the other comments where anxiety is apparent lest the finest curative effect of Mr. Hoover's gesture on the depression has been lost in the subsequent difficulties as to details. Ihe hope' is expressed that the British Empire's lead may be immediately followed by other creditor Governments.