TIMELY MOVE

Southland Times, Issue 21429, 25 June 1931, Page 7

TIMELY MOVE

WAR DEBTS PLAN SOVIET MACHINATIONS UPSET GERMAN COLLAPSE AVERTED (United Press Assn.—By Telegraph—Copyright.) London, June 23. The diplomatic correspondent of the Morning Post understands that carefully laid plans by Moscow, seeking to control Germany, were the determining factor in President Hoover’s haste with his announcement. He had intended to postpone his declaration till Mr H. L. Stimson, Secretary of State, had arrived in Europe, but learned that the safety of the Bruening Cabinet was a matter of hours and the fall of Germany and the Government would have resulted in a coup djetat by the extreme right, and, as foreseen by Moscow, this would have led to a financial catastrophe, with a swing to the Left as a natural reaction. The Russians hoped that France would, then reoccupy the Ruhr, arousing the antipathy of the whole of Germany, giving the Soviet an excuse for an attack on Poland in order to come to the assistance of Communist Germany. Mr Hoover’s proposal, however, destroyed the Russian hopes. Questioned in the House of Commons regarding his recent talks with Mr A. W. Mellon, Secretary of the United States Treasury, the Prime Minister stated that the conversations were in no sense official, and therefore he had nothing to report. The British Government’s cordial acceptance of the broad principle of Mr Hoover’s proposals as announced by the Prime Minister in the House of Commons was to-day handed to the United States Government by the British Ambassador in Washington, Sir Ronald Lindsay.

Speaking at an American Chamber of Commerce luncheon in London, Mr J. H. Thomas said the magnificent action of Mr Hoover showed that he and his people were not only alive to the economic factor, but also the psychological factor, and he could not do other at that American gathering than pay tribute to the wonderful gesture which was the first really practical step towards recovery. “But don’t let us fool ourselves,” Mr Thomas continued, “by assuming 'that this is the only key, and do not let us misconstrue the situation by assuming that all is now well. There are still many difficulties to get over. There must be other moves, and those moves I believe are inevitable.” DOMINIONS’ POSITION EARLY STATEMENT URGED. (Rec. 7.0 p.m.) London, June 24. Declaring that the Government was committing a serious error in delaying its declaration concerning the effect of Mr Hoover’s offer on the dominions, the Morning Post says: “There ought not to be moments of doubt regarding our intention to offer them tho full benefit of a year’s moratorium. We cannot deny our kith and kin the relief which we are conceding foreigners, especially when no country is more desperately in need than Australia.” “For the honour of the country let the Government speak now,” says the Daily Telegraph. Referring to the position of the dominions, it says that British official circles emphasize that this is strictly a domestic affair which should form the subject of inter-Empire, not international, argument. There are highly technical questions yet to be cleared up. THE FRENCH REPLY MAINTENANCE OF YOUNG PLAN. (Rec. 7.0 p.m.) Paris, June 24. The draft of the Ministers’ counter proposals to Mr Hoover, it is understood, reaffirms the necessity of the maintenance of the Young Plan. It insists on the payment of Germany’s unconditional annuity, but expresses a willingness to accept in marks the payment being made to the Bank of International Settlements, which will be used for the relief of the countries of Central Europe which are severely stricken in the present economic crisis. It will be pointed out that the French deficit in the Budget cannot be made up by additional taxation, which has reached the limit. The Government will therefore be obliged to postpone its plan for national development. GERMAN ENTERPRISES AMERICAN CAPITAL INVESTED. Brussels, June 23. The Etoile Beige declares that Germany has shown considerable bad faith and has even used blackmail, while the Americans are business people, striving to save the capital they have imprudently in German enterprises. Mr Hoover’s plan can only postpone the reparations problem, though it may point a way to a final solution, based on world co-operation. ACCEPTANCE BY GERMANY. Washington, June 23. lermany to-day formally accepted President Hoover’s proposal. STABILIZING BUSINESS SIR HENRY THORNTON’S VIEWS. Ottawa, June 23. “The Hoover proposal might be the one factor that would stabilize business and start it on the road back to recovery,” Sir Henry Thornton told the special Parliamentary Committee which is dealing with the Canadian National Railways to-day. “Personally,” he said, “I think it is.” LOAN TO REICHBANK FEDERAL RESERVE BOARD. (Rec. 7.45 p.m.) Washington, June 23. While Mr Hoover devoted the day to energetic efforts to speed acceptance of his reparations programme, the Federal Reserve Board was credited with considering granting a substantial short term loan to the Reichbank through the New York Reserve Bank. The Administration appears to be unwilling to heed Democratic appeals for an extra Congressional session, but it seems probable, if the suspension of foreign payments is to be approved before the next payment day, December 15, that Congress will have to assemble some weeks prior to that date. Senator Harrison (Democrat) has proposed a "political armistice” in order that partisan issues may be abandoned during the Congressional discussion of Mr Hoover’s programme. PROPOSAL WELCOMED AUSTRALIAN PRIME MINISTER. Sydney, June 24. The Prime Minister, Mr Scullin, stated: “I cordially join with the British Government in welcoming the proposals of President Hoover. They are primarily directed towards relieving the debtor nations and, in my opinion, represent the world-wide economic depression." The Prime Minister added that if Great Britain under the Hoover plan afforded relief to debtor nations, Australia, being one, would be relieved to the extent of £3,920,000, but would forgo her share of reparations to the extent of £830,000. Thus the net gain to the Commonwealth would be £3,090,000. Prices on the Sydney Stock Exchange

rose appreciably as• a result of the proposed war debt suspension. Shares of exporting concerns attracted the greatest attention, though mining stocks were active, and wheat, locally, advanced a penny a bushel. NEW ZEALAND’S POSITION THE SUBJECT OF CORRESPONDENCE. Wellington, June 24. In reply to a question the Prime Minister said it was impossible to indicate whether Mr Hoover’s debt postponement scheme would have any bearing on this year’s taxation proposals of the Government as the suggestion was in a tentative form. New Zealand had already paid the half-yearly instalment far the current year. The whole matter was the subject of correspondence between the Government and the High Commissioner for New Zealand in London.