DEBTS AND REPARATIONS

Otago Witness, Issue 4066, 16 February 1932, Page 23

DEBTS AND REPARATIONS

A CONFERENCE IN JUNE. A CONFERENCE IN JUNE RUGBY, February 11. Conversations upon reparations have been proceeding between the British and French Governments, and it is probable that Sir John Simon will, in Geneva, consult representatives of the Powers concerned upon the possibility of holding a Reparations Conference in June. If the other Governments concur an an nouncement regarding the scope of the proposed conference will be issued in th*.near future. AGREEMENT REACHED. LONDON, February 12. The Paris correspondent of The Times says: “The draft of the Franco-British reparations and war debts agreement has been completed, the concluding stage being reached after a conference between M. Laval and Lord Tyrrell (British Ambassador). The exact text of the agreement will not be published until after Sir John Simon approves of it, but it is believed that the two Governments agree to pursue a joint course of action for a final settlement of reparation and debt problems at the Lausanne Conference in June.” CONFERENCE ARRANGED GENEVA, February 12. Sir John Simon and M. Tardieu have arranged the Reparations Conference for J une.

A previous cablegram read as follows:—The Paris correspondent of The Times says: “The draft of the Franco-

British reparations and war debts agreement has been completed, the concluding stage being reached after a conference between M. Laval and Lord Tyrrell (British Ambassador). The exact text of the agreement will not be published until after Sir John Simon approves of it, but it is believed that the two Governments agree to pursue a joint course of action for a final settlement of reparation and debt problems at the Lausanne Conference in June.” PLAN FOR PERMANENT SETTLEMENT. LONDON, February 13. The Daily Herald’s Geneva correspond ent states that behind the announcement of the holding of the Reparations Conference in June lies a definite plan for a permanent settlement. ■ It is believed that the word “ reparations.” so hateful to the Germans, will be abolished. If conditional payments are abandoned, in view of Germany's inability to pay them, unconditional payment will be reduce! and made variable yearly. According to “ Prosperity Index,” compared with the present £30.000,000 a year, a new starting point might be between £10.000,000 and £20,000,000. Proposals are now being submitted to the other Powers. FOREIGN OFFICE ANNOUNCEMENT. RUGBY, February 13.

The following was issued from the Foreign Office to-day:—“As a consequence of the adjournment of the Conference of Lausanne, which had been planned for last January, the Governments of the United Kingdom and France have been engaged in a discussion of conditions in which the conference might meet. As a result of the exchange of views a basis of agreement was reached between the two Governments.”

Sir John Simon (Secretary of State for Foreign Affairs) was requested to communicate with the Governments principally interested, and it is now possible to make the following announcement: —The Governments of Belghnn, France, Germany, Italy, Japan, and the United Kingdom, after having taken note of the Basle experts’ report, agreed to recommend to the other Governments concerned the adjournment of the Lau-»

sanne Conference to the month of June. The object of the conference will be to agree on a lasting settlement of the questions raised in the report of the Basle experts, and on those questions necessary to solve the other economic and financial difficulties which are responsible for and may prolong the present world-wide crisis. This decision has been reached by the above Governments in the hope that it will ease the international situation.

THE SOLUTION OF WAR DEBTS

After all the tons of statistics have been assembled, says Mr George P. Auld, in the annual financial review published by the New York Herald Tribune, the controversy regarding reparations boils down to three questions: how much will Germany agree to pay; how much will France, England and the United States agree to forgo; and how shall the paper losses be allocated among the creditors? “ We in this country are apparently all hoping for the best and waiting," like Micawber, for something to turn up,” he continues. “ But nothing is more certain than that nothing pleasant ever will turn up in connection with this malignant problem of reparations without a great and sustained agony and effort of the intelligence by someone in this country. It is idle to imagine we are not involved in reparations. The legalistic idea that reparations and inter-ally debts are unrelated was swept away last June by the realities of a major economic convulsion. We are in the reparations snare up to the neck, and to the bitter end, and at some not distant time an appeal will have to be made to our people over the heads of a Congress intent on saving them two dollars six cents apiece a year in inter-ally debt money at the cost of a continuing paralysis of trade running into billions of lost income every month.”