LEGACY OF WAR

Southland Times, Issue 21606, 19 January 1932, Page 5

LEGACY OF WAR

REPARATION PAYMENTS. QUESTION OF CANCELLATION. (British Official Wireless.) Rugby, January 16. The Times, in a leading article, says reparations represent the first international question to which the new French Government will have to address itself after seeking a vote of confidence in the Chamber. The official French policy remains what it was when M. Laval returned from Washington. “It may be hoped,” says The Tinies, “that the new Government will recognize the advisability of reading the agreement in common deliberation with the other countries concerned, both upon the immediate issue of next July and upon the larger question of the ultimate resumption of payments after the period of depression is over. The arguments against the immediate abrogation of the rights conferred upon creditor countries by The Hague agreement are fully understood in this country, nor does it seem reasonable to finally and formally cancel the payments due as long as the war debt payments remain an obligation. “This country long ago placed on record the view that the wojjld would profit by an all-round cancellation. The question for discussion at Lausanne, however, is not war debts, but reparations. But in regard to all these inter-governmental obligations the conviction has steadily grown here that their payment has been pernicious to the general economic system of the world. With regard to reparations, there must be the largest possible clearance at Lausanne. If it is nevertheless found that no agreement is possible on fundamental points at the present moment, it would be best to arrange a brief extension of the moratorium with a firm undertaking by all the participants that they meet again during the present year to reach a more lasting solution.” THE MORATORIUM POSSIBILITY OF EXTENSION. (Rec. 11.35 p.m.) London, January 18. The diplomatic correspondent of the Daily Telegraph says it is now expected that the Lausanne Conference will pronounce in favour of an extension of the moratorium for six months and adjourn for the same period. Indications in the United States at present are that any further prolongation of the moratorium will be opposed. In any case France will attend Lausanne in a reluctant and distrustful spirit. The Bank of England also favours a postponement for six months, as it holds that anything short of all-round cancellation is worse than no settlement at all.