The New Zealand Times. MONDAY, JANUARY 28, 1924. LEAGUE OF NATIONS

New Zealand Times, Volume LI, Issue 11738, 28 January 1924, Page 6

The New Zealand Times. MONDAY, JANUARY 28, 1924. LEAGUE OF NATIONS

IE is good news indeed that the League of Nations is about to take in hand the financial and economic rehabilitation of Hungary, as it has already undertaken, and with a considerable measure of success, the rehabilitation of Austria. The sub-committee of the League, appointed to investigate the case of Hungary, has concluded its work as regards the financial reconstruction of that distressful country by unanimously accepting a loan proposal; and this has now to he Forwarded to the Reparations Commission. The proposal, which is apparently on much the 6ame lines as the arrangement which has worked so well in the ease of Austria, involves a loan of 250 million gold crowns. That sum is to he used in two and a half years, and is repayable in twenty years; and during twenty years the reparations charges under the Peace Treaty are to he limited. This, no doubt, is a part of the arrangement particularly requiring the assent of the Reparations Commission; as also must the provision that the League shall appoint a non-Allied General Controller of certain securities, on which the Reparations Commission will raise liens to be pledged for the service of the loan. It is interesting to note that the terms of the protocol, which has been drawn np in regard to the political conditions of the loan, provide that there shall be no political disturbances between Hungary and other nations.

Important as is the proposed method of rehabilitation so far as Hungary itself is concerned, it is still more important as affording yet another precedent for similar action in the case of Germany. Even if it had not been complicated by the occupation of the Ruhr and by Germany’s ill-advised campaign of passive resistance against that occupation, the problem of the financial and economic rehabilitation of Germany would, of course, still have been a much more difficult one than that either of Austria or of Hungary, or even than that of both combined. The population concerned is so much bigger; and the interests involved, both financial, industrial, and commercial, are of so much greater magnitude. But, in their essence, the financial and economic problems that have to be dealt with are much the same; and, if only sufficient light can be brought to hear upon them and some of the causes of friction can he eliminated, it should he possible to solve them, even as the financial and economic problems of Austria and of Hungary are in process of solution. Up to the present, the discussion of the reparations proßlem has, in so far as Germany is concerned, been productive of heat rather than of light. But it is to be hoped that the inquiries set on foot by the Committees of Experts recently appointed, will throw more light, not only on the reparations problem itself, hut upon the genera] financial and economic position of Germany. The presence of the United States representatives on those committees—to 6ay nothing of the high character and ability of the British representatives—should go far to guarantee that no unnecessary heat will he generated in the course of the investigations. Of course, a loan of very considerable magnitude would be required to meet the case of Germany; but once the amount of the reparations payable has been definitely decided, and once Germany has given indisputable evidence that she intends to pay the indemnities justly due from her to the Allies, the rest will he comparatively easy. Surely, Germany must now see that any further recalcitrance on her part can only add to her difficulties and her burdens. Surely, with the examples of Austria and of Hungary before her, she must realise that it will he far better for herself, as well as for the world at large, if she acoepts the position, determines to make good in regard to her reparations obligations, and thus paves the way for an international loan that will put her on her feet again, just as Austria is already being put on her feet and Hungary is about to bo. The whole position emphasises once more the fact that, as stated by Sir Auckland Geddes, the retiring British Ambassador to the United States, in his farewell address to the Pilgrims’ Society: “Nothing is so important as a complete understanding and frank co-operation between the Englishspeaking peoples to provide a nucleus for the world that is to arise from the ashes of the World War.” We have this co-operation now in a measure in the Experts Committees on Reparations; but it cannot have its full effect unless and until we have it on the League of Nations also.