BRUENING’S DECLARATION

Taranaki Daily News, 13 January 1932, Page 7

BRUENING’S DECLARATION

GERMANY UNABLE TO PAY STATEMENT CLEARS THE A'llß PROSPECT OF CONFERENCE TIME TO FACE REALITIES British Wireless. Rugby, Jan. 11. Commpinting on Dr. Bruening’s statement that Germany cannot pay reparations, The Times says: “The supreme question which participants at the Lausanne conference will have to consider is whether there is any real chance of recovery in Germany, and therefore of averting the danger of collapse in the rest of the world. The answer can be found only through a thorough and frank discussion of the whole situation. “So much depends on the solution of the problem, not only for Germany, but for her creditors as well, and for every country in the world, including those who seem to have no direct interest in it, that there is no room in its discussions for any prejudice or prepossession, for national sympathies and antipathies, or for political considerations of any kind. The only things that matter are the economic realities.” The Daily News thinks the statement clears the air -and that the Lausanne conference can now settle down to realities, but the paper makes the point that “no reasonable person, even in Germany, would be prepared to swear to the economic impossibilities of Germany’s resuming some small payment of reparations in the distant future if world-wide trade revived.” The Daily Telegraph says: “That Germany cannot pay reparations now is clear enough, and so much was stated in the Basle report, but that she will still be unable to pay anything in three or five years’ time no one can assert. To-day the strength of the German position is that she cannot crash without involving others in stupendous losses. To go to Lausanne without a prospect of Franco-British cooperation, and with the certainty of a violent explosion of Franco-German wrath, promises no fruitful result.” ABANDONMENT SCOUTED. The Daily Herald says that the suggestion that the Lausanne conference should now be abandoned and a creditors’ meeting held instead cannot be taken seriously. In City circles in London to-day Dr. Bruening’s statement was received calmly, some such step having apparently been anticipated. At the opening of the Stock Exchange German loans experienced a setback, but a sharp recovery was made towards the close. German 7 per cents again reached £69 and 5i per cents. £53. Leading British funds finished the day oneeighth to one-half higher. A Rome message states that Dr. Bruening’s reparations statement is not considered surprising and is regarded as a further indication of the need for decisive and collective action. Italy would loyally cooperate in an effort by all nations to reestablish normality. M. Laval, the French Prime Minister, saw the German Ambassador to-day. It is understood he protested against Dr. Bruening’s “cannot pay” statement, pointing out that it was issued at the most inopportune time in view of the Lausanne discussions. Republicans are urging the Government to declare that if reparations are not received from Germany there will be no war debt payments to America and Britain. M. Laval is expected to publicly reply to Dr. Bruening after a Cabinet discussion. Young Plan bonds have dropped on the Bourse from 463 to 437 francs. "MOVING TOWARDS ABYSS” ITALY FAVOURS ABOLITION. Rec. 10 p.m. Milan, Jan. 12. A strong article advocating the abolition of reparations appears in the newspaper II Popolo d’ltalia, which is closely -associated with Signor Mussolini. The paper says it is no exaggeration to say that Europe is moving towards the abyss.