THE WORLD CRISIS

Otago Daily Times, Issue 21529, 29 December 1931, Page 7

THE WORLD CRISIS

ONLY POSSIBLE REMEDY ■ , i) SIGNOR MUSSOLINI’S VIEWS REVISION OF REPARATIONS' (United Press Association.) , (By : Electric Telegraph—Copyright.) : * ROME, December 27. Signor Mussolini’s view is that the world crisis cannot be remedied unless reparations are revised and every country relieved of the unbearable burden of war debts. THE HOOVER MORATORIUM. AMERICA’S RATIFICATION. LONDON, December 27. “ The ‘declaration by Congress that the ratification of the Hoover moratorium cannot be accompanied 1 by the cancellation or reduction of war debts due to Alnerica is only comparable wit]i Canute’s command to the tide,” says Sir Arthur Salter, commenting in the Observer on the Basle report. He added: “ The connection between reparations and war debts existing at present and the moratorium cannot be broken. Whether the creditors agree or the debtors default is for the creditors to decide, but those who no longer receive reparations cannot continue undiminished wdr debt payments. The war debtors perhaps should not regret Congress opposition to a debt funding commission, which, unless endowed with greater wisdom than the European creditors have shown in dealing with reparations, would probably produce a verdict involving an intolerable strain on European debtors; while now/, if Europeans cannot meet their debt' payments owing to lack of reparations/they will be ranged with the most ‘ responsible people in America, including the President and the chief ‘Ministers. Indeed, Congress has done its best to exempt default from dishonour.” The Observer, expresses the opinion that the international conference arising out of the Basle report will begin at The Hague on January 18.

Sir James Arthur Salter was director of the ecohomic and finance section of the League of Nations and general secretary of the Reparations Commission from 1920 to 1922. BRITAIN AND "FRANCE. LEADERS TO CONFER ON POLICY. \ , x PARIS, December 28. (Received Dec. 28, at 8 p.m.) ,It is reported that Mr Ramsay MacDonald has invited M. Laval to London to discuss the reparations policy prior to The Hague conference i THE BASLE REPORT., BRITISH PRESS COMMENT. V’• i i LONDON, December 27. (Received Dec. 28;.at 5.5 p.m.) All the newspapers point out that the Basle report merely states what everybody knew, and they express a fear that the issue will pass into , the realm of political discussion at The Hague while the world’s problem intensifies. The Daily Telegraph’s diplomatic correspondent emphasises that the crucial point is, can Germany be granted a further moratorium without the Powers knowing whether they can obtain a corresponding suspension of their debts to America. Consequently all .eyes are turned on Washington, awaiting President Hoover’s intentions. GIST OF THE REPORT. GERMANY IS BANKRUPT. LONDON, December 28. (Received Dec. 29, at 1 a.m.) The Daily Telegraph says that Mr MacDonald personally sent a letter to M. Laval suggesting that a meeting be held to discuss a common line of policy for the conference. When Sir Leith Ross, of 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 to reparations as an inducement' to the United States to cancel the British and French debts. France’s counter-pro-posal was that the German moratorium should be for two years, adding that she could not see her way to give up her clgim to reparations. Sir Leith Ross and the French officials, however, were agreed on the urgent necessity of meeting the situation arising from the refusal of the Congress to deal with war indebtedness. In.the Paris newspapers the outstanding topic is how the Basle Committee will view the attitude of the Congress. They agree that the recommendations in the Basle report regarding a reduction of debts can be dismissed, as they are invalidated by ? facts. The newspaper comments are tnus concentrating''on the assumption that the report virtually declares that Germany is bankrupt. Le Temps agrees that a definite collapse in Germany may be serious, though it insists that Germany alone is. responsible. The paper adds that the cost of reparations is only 12$ per cent, of Germany’s total indebtedness, and that the rest is due to extravagance, LTntransigeant describes -.Germany’s financial methods as frankly dishonest, for by bankruptcy in 1923 she reduced her national debt to nothing, then borrowed abroad on short-term credit, which she invested at long term. Thus, although she is unable to repay her creditors she is now an enriched country, hut she merely declares that she is insolvent, and spits on her victims.” CHIEF CAUSES OF CRISIS. LONDON, December 28. The city editor of The Times says; “ Markets are being resumed in the hope that French and American politicians will not disregard the Basle Committee’s warning. The instantaneous response to President Hoover’s . moratorium offer showed; that the public feels that war debts payments and the maldistribution of gold are the chief causes of the crisis.”—Times Cable.