WORLD SITUATION.

New Zealand Herald, Volume LXVIII, Issue 21037, 23 November 1931, Page 9

WORLD SITUATION.

GLOOMIY VIEW TAKEN. GENERAL SMUTS' REVIEW. NATIONS SHOULD CONFER. By Telegraph—Press Association—Copyright. (Received November 22. 5.5 p.m.) LONDON, No?. 21. A gloomy view of the world situation was takon by General Smuts, Leader of the Opposition in the South African Parliament, in a statement made prior to his departure for Capetown. General Smuts said much of Central Europe was in a critical state, and a financial crisis was threatened in the near future accompanied by undesirable political changes, if not a social upheaval on a laree scale. Action was imperative. A world conference must be convened without delay to overhaul the problems of German reparation and international debts, the settlement of which, coupled with disarmament, would be a, very long step toward the world's recovery. The Statute of Westminster, a moderate tariff, a successful economic conference at Ottawa, with Imperial preference stimulating Empire trade development, said General Smuts, would, he believed, assist in the solution'of a whole host of British problems. India was the most dangerous of Britain's difficulties. Ho believed in the sincerity of Mr. Gandhi. Britain must go pretty far to satisfy India, and the sooner the better. The result of the general election was the people's expression of their sense of the national danger.

BURDENS OF GERMANY. YOUNG PLAN PAYMENTS. APPLICATION FOR RELIEF. LONDON, Nov. 20. The German Ambassador to Britain, Dr. K. F. von Neurath, has handed to the Foreign Office a memorandum applying for the convocation of the special advisory committee under the Young IMan. The memorandum points out that Geimany's economic and financial situation was most seriously endangered before June, 1931, at the beginning of which month the Government had decided that, in spite of the most rigorous reductions in State expenditure and repeated increases in taxation, it could not continue the payment of the Young Flan annuities. The communication says the hopes that the Hoover plan would cause a decisive turn in the world crisis had not been realised, while tho London conference and the Basle " standstill " agreement were merely a preparatory review of Germany's position.

Germany's situation since then had reached a state of extreme tension. Accordingly it had been decided to exercise the initiative whereby Germany can apply to the advisory committee provided it has "come in good faith to the conclusion that. Germany's exchange and economic life might be seriously endangered by the transfer, in part or in full, of the postponable portion of the annuities." Germany is bound to declare, says the memorandum, that these terms do not do justice to her actual position, owing to the fact that since the Young Plan was conceived the position throughout the world, particularly in Germany, has been altered by an > unparalleled crisis. The committee must examine the whole problem, particularly Germany's private indebtedness, and it will have to be settled in sufficient time before the end of February to enable an agreement to be made between foreign creditors and German debtors. Therefore it is necessary that the committee should meet without delay and decide the matter as quickly as possible.