EUROPE'S CRISIS.

New Zealand Herald, Volume LXVIII, Issue 21069, 31 December 1931, Page 7

EUROPE'S CRISIS.

REPARATION ISSUE. RELIEF FOR GERMANY. MORATORIUM SCHEME. TERM OF THREE YEARS. PROBABLE ACCEPTANCE. By Telegraph—Press Association— Copyright. (Received December 31. 12.25 a.m.) LONDON, Dec. 30. The Daily Telegraph's diplomatic correspondent says the outlook for the proposed International Reparations Conference has undergone an unexpected and far-reaching change, as there is now a strong prospect of a preliminary agreement between the British and French Treasury experts which the conference probably will accept. The correspondent forecasts that the task of the conference would be restricted to discovery of a purely provisional solution of tho reparations problem broadly following these lines:— (1) Germany to receive a three years' moratorium in respect of the conditional portion of the Young Plan annuities, this being the mean of the British demand for five years, and the French demand for two years. (2) Although Germany would be required, during the moratorium, to pay the unconditional portion of the annuities to tho Bank for International Settlements the money would be re-lent to the German railways, thus avoiding any external cash payments. (3) As compensation France and some of tho smaller beneficiaries of Germany would be asked to make limited payments in kind. (4) The creditor Powers would promise a re-examination of Germany's capacity to pav reparations at' the end of the moratorium. FRENCH OPINION. ENTENTE WITH BRITAIN. NECESSITY EMPHASISED. (Received December 30, 5.55 p.m.) Times Cable. LONDON, Dec. 29. The Paris correspondent of the Times says the French newspapers insist that in view of America's attitude toward the proposed conference on debts and reparations, France and Britain must pursue an agreed policy. Le Temps asserts that an entente is indispensable as the basis of a constructive European policy. Concerted action between London and Paris never has been harmfully directed against any Power, or group of Powers, says the paper, but always for the general good of Europe. The two powers who unitedly wield the surest international influence should act co-operatively. A solution has been easy whenever a great international discussion has been approached after a preliminary agreement between Britain and France, but when this has been lacking the difficulties have been insuperable and half -measures have resulted. Germany's creditors and America's debtors should present a united front between the Basle findings and American stubbornness, adds Le Temps. The European nations must present America with a concerted scheme and make her responsible for any chaos which follows its rejection. AMERICAN REJOINDER. NOT ASKED TO CONFERENCE. WILL DECLINE REPRESENTATION. WASHINGTON, Dec. 29. Mr. Ogden Mills, Under-Secretary to the United States Treasury, stated today that the United States had not been asked to be represented, even unofficially, at the proposed Reparations Conference in Europe in January and would not send a representative if she were asked to do so.