DANUBIAN COUNTRIES.

New Zealand Herald, Volume LXIX, Issue 21153, 9 April 1932, Page 11

DANUBIAN COUNTRIES.

CONFERENCE DEADLOCK. DELEGATES FAIL TO AGREE. ATTITUDE OF GERMANY. By Telegraph Press Association—Copyright. (Received April 0, 12.15 a.m.) LONDON. April 8. It is clear that the Four Powers' Conference is ending because the Trench, Italian and German points of view are irreconcilable. The German delegate, Herr von Bulow, declared that Czecho slovakia was in no need of financial assistance, that AustriaHungary and Bulgaria needed it urgently, and that Puimania and Yugoslavia needed it decidedly less. A system of mutual preferences among the Danubian States had been tried and failed. Germany's exclusion from a preferential system would result in Czechoslovakia supplanting German industry. France and Britain might be willing to waive the inost-favoured-nation clause since they did little business with the Danubian States. Britain was exporting £10,000,000 worth a year to those countries, whereas Germany exported £60,000,000 worth a year.

Herr von Bulow said Germany was prepared to grant unilateral prefeience to Hungary, Yugoslavia, Rumania and Bulgaria in respect of their agricultural exports. Germany offered Austria unilateral preference both for agricultural and industrial exports and invited the other Powers to follow her example. When Herr von Bulow concluded, the delegates observed that the French and German proposals were mutually destructive and realised that a solution at present is impracticable.

The Daily Express remarks that the conference crashed over the refusal of Germany and Italy to sacrifice their trading rights without, compensation. In the background was the German suspicion that the French proposal was intended to block the possibility of a revival of the plan for an Austro-German customs union.

A French correspondent of the Daily Telegraph says French quarters regard Germany's objections as really political. She fears the closing of the Danube countries against Germanic influence and economic penetration. At the close of the proceedings Mr. Mac Donald intimated that the failure of the scheme for a preferential tariff meant the loss of financial assistance to the States.

OFFICIAL PEPOET. LINES OF DISCUSSION. DIFFICULTIES NOT INSUPERABLE. British Wireless. RUGBY. April 7. At the close of the day's deliberations of the Four Powers Conference on the Danubian States' economic position, a further communique was issued which stated: "The committee appointed by the conference yesterday sat. at the Foreign Office and examined, the main proposals put forward at the conference. A report of the proceedings will be made to the conference at its meeting to-mor-row morning. " It is understood that during to-day's long discussions the delegates found problems arising which some of the Governmenls represented require to consider further before committing themselves to any definite attitude. Consequently the conference will adjourn to-morrow, and ar-range-to resume at a later date, possibly at Geneva, or if more convenient at some other Continental centre.

" The adjournment is not likely to be of long duration, because all four Powers are agreed at least upon tho urgency of the Danubian problem. In the meanwhile the Governments will be able to study the questions at issue in relation to their own individual interests, and in the interval further information and data

not at tho disposal of the present confer ence will be collected.

" Agreement could not be reached today because the delegates found themselves unable to give, a definite reply on certain essential points. The main issue was whether the Governments represented would bo willing to waive their rights under most-favoured-nation clauses in order to permit tho Danubian States a little more freedom to make customs and fiscal arrangements. • "The British Government, takes the view that rigid insistence upon most-favoured-nation rights by the great Powers must necessarily impede any measures which the Danubian States can adopt to restore the flow of normal trade. " The different economic interests of the different States concerned has proved one of the obstacles which the conference so far has failed to overcome. The British anil French proposals have been taken as a basis of discussion during the conference, and various alternative suggestions have been put forward by the German and Italian delegates. " The difficulties encountered are, not considered to be insuperable, and British circles arc still hopeful that an agreed plan will be evolved before long."