HOW FEARS VANISHED.

Star (Christchurch), Volume XLIV, Issue 493, 30 June 1932, Page 11

HOW FEARS VANISHED.

Six Powers Hold Meeting at Lausanne. An earlier message by British Official Wireless this morning told of the developments that led up to the agreement. The message from Rugby said: — There were important developments iry the Reparations Conference at Lausanne when a critical phase in the proceedings was turned largely owing to the intervention of Mr MacDonald. The publication by Captain von Papen of a statement regarding the long conversations yesterday between the delegates of France, Germany and Britain led to fears that the conference was in danger, but these fears were dissipated after a meeting was held in the evening, at which the six inviting Powers proceeded to make arrangements for completing the work of the conference. At the conclusion of yesterday’s meeting a communique was issued stating that Mr MacDonald would report on the position resulting from FrancoGerman conversations. A cloud was cast over the conference when von Papen's version of Tuesday’s conversations was published to correct the allegedly misleading reports in the French Press. In the course of von Papen’s announcement it was stated that Mr MacDonald had asked the German Chancellor whether he could not do something to bring about a final solution. The German Chancellor stated that he replied as follows: — “ The confidence of the world can only be restored if the victorious Powers could decide to remove the discriminations contained in the Treaty of Versailles. If in this manner German equality and security were re-estab-lished, the Chancellor could envisage the possibility of Germany participating in the general effort towards reconstruction of world trade in the form of a contribution,. which presupposes, however, the re-establishment of the economic balance of Germany.” Publication of this document created lively interest in Lausanne and gave rise to many unfavourable rumours.

Captain von Papen and M. Herriot had further conversations and Mr MacDonald met them in a further attempt at mediation. Signor Grandi (Italy) also attended, and later the four statesmen left the hotel and strolled along the lakeside to the Chateau d’Ouchy, where they were joined by the delegates of Japan and Belgium. At the meeting of these six inviting Powers which followed, general consent was secured to the setting up of a committee of thirteen members, over which Mr MacDonald was to preside, to draw up a plan for the settlement of reparations. A second committee, including the Ministers of Commerce, also will be formed to study the economic crisis and the present tendencies in world trade. It is understood that the work of the conference will continue, although the heads of the delegations for the present will be absent from Lausanne. Mr MacDonald is returning to London to confer with his Cabinet colleagues, who are going to the Ottawa Conference. Captain von Papen is returning to Berlin and M. Herriot to Faris.