WAR DEBT CRISIS

Taranaki Daily News, 12 January 1932, Page 7

WAR DEBT CRISIS

GERMANY’S DECLARATION reparations impossible REACTION OF THE POWERS 'ACCEPTANCE BY BRITAIN RESENTMENT IN FRANCE ■y Telegraph—Press Assn.—Copyright London, January 10. In contrast to the comparative calmness with which Britain regards Dr. Bruening’s declaration that Germany •annot pay reparations, the French paper Le Temps describes it as an act of folly, uni gays: ‘fff this attitude is adopted ■t Lausanne it means an end to all the rules forming the basis of relatione between civilised people and would destroy international order.,- Such action would cause countries to lose all confidence in the possibility of rehabilitating the nation to which all treaties and agreements are only scraps of paper.” Emphasising M. Flandin’s intention not to -attend the Lausanne conference if -Dr. Bruening persists in his attitude, ‘Tertinax,” writing in the Echo de Paris, advocates economic pressure on Germany by France. He states that the German economic system hangs by a thread and, if necessary, all assistance direct and indirect must be refused. ■ 1 The Daily Mail, in a leader discounts the theory that Dr. (Bruening is bargaining, and says: "His pronouncement means what it says. It is the naked truth that Germany cannot pay. France might be willing to afford temporary relief, but is not prepared to go as far as Dr. Bruening wishes. It is the memory of her ravished lands and resultant sacrifices which prevents France from sacrificing to Britain’s policy of cancelling war debts and reparations, •specially while America is obstinate.

"THE INEVITABLE COURSE.”

Ths Daily Herald, in an outspoken editorial, says: “Dr. (Bruening has merely bluntly announced what nine out of ten have long since realised. It is the inevitable course of events. It has been an elaborate game of pretence, a gigantic and childish make-believe. Everybody has known that the Young Plan is dead. The Frendh are naturally scandalised and apt to exhibit slightly hysterical prudifiliness on these occasions. Britain should not tolerate the coercion of Germany into payments.” (Mr. ißamsay MacDonald expresses the certainty that it will be found that all the Governments concerned realise that a European recovery depends upon facing hard facte. “Dr. Bruening’® declaration makes the Lausanne conference more necessary than ever,” he says. “It is impossible to leave things as they are: A (Paris message says that the general feeling is that a preliminary FrancoBritish agreement is more essential than ever. The German bombshell, possibly with further explosives to follow, increases the ‘likelihood of the usefulness of a meeting between Mr. MacDonald and M. Laval.

The entire German Press supports Dr. Bruening’s courage and determination and promises him and President Hindenburg the nation’s support in the forthcoming foreign political battles. The papers deprecate the foreign excitement, since Dr. Bruening has disclosed nothing new.

A Hanfburg message states that Mr. Maynard, speaking there, considered that various nations, including Germany, South Africa and Holland, should abandon the gold standard in 1932. This was an economic necessity for Germany.

FRENCH OPINIONS.

In. a statement to Pressmen, M. Flandin, French Finance Minister, declared that the Lausanne conference would be useless if it was preceded by such declarations as that of Dr. Bruening, because “it is impossible simultaneously to destroy France’s rights and to seek her collaboration.” Lobby opinion supports this view, adding that if Germany has decided to default her creditors ought immediately to confer with a view to common action. M. Flandin said that Dr. Bruening’s statement was tantamount to ending the Young Plan and the "Versailles Treaty, but no Frenchman could accept a unilateral renouncement of conventions involving the destruction of the sacred right to reparations. Nobody contested the gravity of the world crisis, or the necessity of an adjustment of inter-Gov-ernmcntal payments. France was a,t present studying in a conciliatory spirit formulas for alleviation, but it would render the crisis insurmountable if fresh attacks on caused capital further reasons for non-confidence. French newspapers join in condemnation of Germany. Le Journal des Debats says: "Germany is certainly preparing to tear up the Versailles Treaty, which must not be allowed.” Le Soir urges Britain and France to *hdw 'a united front to Germany. L’lntransigeant says: “The declaration is significant, following Herr Hitler’s interview with Dr. Bruening. It may be one of the conditions. Herr Hitler laid down.”