POWERS AND GERMANY.

New Zealand Herald, Volume LXVIII, Issue 21067, 29 December 1931, Page 7

POWERS AND GERMANY.

HAGUE CONFERENCE.

REPARATION and debts.

definite connection. SIR A. SALTER'S VIEW. 'MI EYES ON AMERICA. Tp' ,, - r ' l p''—Press Association—Copyright. (Keceived December 2S. 7.5 p.m.) LONDON, Dec. 27. ; \!1 the newspapers point out that the p.asle report on German reparations merely stated what, everybody knew and Ihev express the" fear that the issue will pass into the realm of political discussion fl t the Hague while the world's problem heroines intensified. The Daily Telegraph's diplomatic correspondent emphasises the fact that the crucial point, is: Can Germany be granted a further moratorium without the Powers knowing whether they will obtain a corresponding suspension of their debts to 'America ? Consequently all eyes are turned toward Washington awaiting an announcement of Mr. Hoover's intentions. A message from Paris statei that the British Prime Minister, Mr. Mac Donald, is reported to have invited the French Trime Min : ster. M. Laval, to visit London to discuss the matter of reparations policy prior to the Hague Conference. War Debts .Reduction Essential. "The declaration bv the United States Congress that its ratification of the Hoover moratorium cannot be accompanied by the cancellation.*)!' reduction of the war debts due to America, is only comparable to Canute's command to the tide," says Sir i Arthur Salter, Director of the Economic and Finance section of the League of Nations, in commenting in the Observer on the report of the Basle experts. "The connection between reparations grid war debts existing under the present moratorium cannot he broken. Whether the creditors agree or the debtors default is for the creditors to decide, but those no longer receiving reparations cannot continue undiminished their war debts payments. "War debtors, perhaps, should not regret the opposition of Congress to the Debt Funding Commission, which, unless it were endowed with greater wisdom than the European creditors have shown in dealing with reparations, probably would have produced a verdict involving an intolerable strain on the European debtors. Unbearable ..Burden of the War. " Now. however, if the Europeans cannot meet their debt payments owing to the lack of reparations, they will be ranged with the most responsible people in America, including the President and his chief Ministers. "Indeed, Congress has done its best to exempt default from dishonour." The Observer expresses the opinion that the proposed international conference arising out of the Basle report will legin at the Hague on January 18. A message from P,ome states that Signor Mussolini's view is that the world crisis cannot be remedied unless reparations are revised and every country is relieved of the unbearable burden of the war. CONFLICT OF OPINION. AMERICA'S ATTITUDE. FRENCH PRESS ON GERMANY. (Received December 2S, 11.55 p.m.) LONDON", Dec. 28. The Daily Telegraph confirms the report that Mr. Mac Donald has written a personal letter .to M. Laval suggesting a meeting to discuss a common line of policy for the Reparations Conference. When Sir Frederick Leiih-Ross, Deputy Controller of Finance to the British Treasury was recently in Paris he proposed that a five years' moratorium be granted to Germany and that France should abandon her claim t<> reparations as an inducement to the United States to cancel the ■British and French debts to her.

France's counter-proposals were that the German moratorium be for two years, adding that France could not see her way to give up ,her claim to reparations. Sir Frederick and French officials, however, agreed upon the urgent necessity of meeting the situation arising from the refusal of the United States Congress to deal with war indebtedness.

The City Editor of the Times says the markets are resuming in the hope that French and American politicians will not disregard the Basle committee's warning. The instantaneous response to Mr. Hoover's offer of the moratorium showed that the public feels that war debts payments arid the' maldistribution of gold were the chief causes of the world crisis.

In the Paiis newspapers the outstanding topic is how Basle Committee will view the attitude of the United States Congress. They agree that the recommendations in the Basle report regarding the reduction of debt can be dismissed as invalidated by the facts. Newspaper comments are thus concentrating on the assumption that the report virtually declares Germany to be bankrupt.

L e Temps agrees that the definite collapse.of Germany may be serious, though it insists that Germany alone is responsible. It adds that the cost of reparations is only 12} per cent, of Germany's total indebtedness and says the rest is due to extravagance.

L'lntransigcant describes Germany s financial methods as frankly dishonest, foi bv her bankruptcy in 1923, it sajs, she reduced her national debt to nothing, then, borrowed abroad on short-term credit, which she invested at long-term. Thus she was not able to repay hei creditors. " Now tlrs enriched country merely declares herself insolvent," says the paper and spits cn her victims.