RELIEF OF WAR DEBTS

Wanganui Chronicle, Volume 74, Issue 146, 23 June 1931, Page 7

RELIEF OF WAR DEBTS

NOTE OF ALARM FROM FRANCE POSTPONEMENT LOOKED AT DUBIOUSLY BRITISH PRESS ADOPTS A CAUTIOUS TONE While Britain acclaims the American gesture for postponement of war debts for a year, France can see no ray of encouragement in the move. Germany has accepted postponement. President Hoover, of the United States, has taken a definite stand that there shall be no cancellation of debts which, he says, were not incurred contingent upon the payment of German reparations. The Press of Britain sounds a note of caution. So far as New Zealand is concerned, Prime Minister G. W. Forbes suggests that the benefit accruing from postponement of reparations will be small.

FRENCH OPINIONS yOUNG PLAN FAVOURED. Received June 22, 9.20 p.m. LONDON, June 22. A semi-official statement from Paris received at midnight declares that while appreciating the generosity of the United States’ gesture, France must emphasise the necessity of bringing a moratorium into force in accord with the Young Plan. It added that an exchange of views must take place among the various chancelleries before it is possible to hold an international conference. TRENCH NEWSPAPER CRITICISM. Received June 22. 9.20 p.m. PARIS, June 22. Le Temps asserts that it will be difficult to accept a postponement, even for a year, of unconditional reparation. That is where France must have her say. France cannot accept suspension of* Germany’s payments in the twinkling of an eye. Germany thus obtains a revision for which she has been cynically working since she appended her signature to the agreement. Pertinax, in the Echo de Paris, also fears that France will be deprived of the whole, or part, of the balance provided specially for the reconstruction of the devastated areas. Le Journal and the Echo de Paris suggest that the proposal is inopporflormonv rInPS UOt dCSCFVC

portune. Germany does not deserve favours, as she herself has precipitat- , ed the present depression. Le Matin points out that the mora- ‘ toriuni applies only to the non-commcr- ' ciaJised debts. The unconditional an- £ unities which Germany pays under the 1 Young Plan will continue as before. 1 INTEREST IN ENGLAND. < NEWSPAPERS CAUTIOUS. [British Official Wireless-] RUGBY, June 20. Interest is taken here in an announcement by Mr Hoover stating that since his return from the Middle Y on the previous day he had conferred with the various leaders of both political parties, “with respect to certain steps we might take to assist in economic recovery, both here and abroad.” He added that the conversations were particularly directed towards strengthening the situation in Germany, and while no definite plans or conclusions have yet been arrived at, the response, he met from the leaders of both parties was most gratifying. While British newspapers recognise the advisability of restraint and caution in the conclusions drawn from the announcement, they regard it as of interest and importance as the first step ' taken by America towards the considertion of a policy which might, in cer- ’ tain circumstances, involve a re-exam-ination of her attitude towards Allied 1 debts and reparations. The announcement is coupled by the J papers with the conversions which Mr Mellon has had in London in the last ’ few days with the Prime Minister, Foreign Secretary, and Mr Montague Norman (Governor of the Bank of Eng- 1 land). It is generally assumed (hat ‘ these conversations consisted of an ( informative and frgnk exchange of views on the present economic and financial factors underlying the Central 7 European crisis and that Mr Mellon has , kept Washington fully informed re- ' garding developments in the situation, and the conclusions he has drawn there from. Mr Mellon’s arrival in England was generally regarded as distinctly opportune, but British officials’ statements, reproduced in yesterday’s message, made it definitely clear that no invitation to discuss war debts, or indeed any subject, has been made to him by the British Government, nor had : any communication to such an effect been made by the British Government to the Washington Administration. Meanwhile, the prompt and timely action by the Bank of England in coming to the rescue in the acute financial situation in Vienna, where incidentally Dr. Seipsel has now succeeded in forming an Administration, provoked appreciative comments in America as elsewhere. NO CANCELLATION VANCOUVER, June 21. President Hoover disposed of the theory that he favours the cancellation of war debts by saying that debts due to the United States were settled on a basis not contingent on the payment of German reparations and that there has been no change in laeir status. “Reparations was wholly a Ear-pean problem with which we have no relation.’’ H made it clear he might favour a reduction of debts if he became convinced that the debtors lack the capacity to pay them in full. GERMANY ACCEPTS HINDENBURG’S APPEAL DR. BRUENING’S SUCCESS BERLIN, June 21. The Government has notified Washington of the acceptance of the Hoover proposal. President Hindenburg had appealed'

to President Hoover, drawing attention to the desperate situation in Germany. Acceptance of tho plan does not imply the surrender of -any German right, such as declaring the postponement of transfers under the Young plan, but President Hoover’s alternative is believed to be preferable, because by it Germany will be relieved of the payment of £75,000,000 during tho moratorium. This would almost equally be divided between '.he Budget and the Railways. Not only the Government but the vast majority of the public welcomes tho outcome, • which is regarded as a g t success for the Bruening-Chequers conversations. •■BRITONS BEWARE!’’ NO REDUCTION IN TAXES LONDON, June 21. The Daily Mail, in a leader, says: “President Hoover’s is a gesture of very great generosity and will help to restore confidence and hope in shaken Europe, but Britons must beware of extravagant hopes. The proposal would not reduce taxes here, because if Britain ceases payment of principal and interest to tho United States, Germany similarly ceases to pay Britain. Nevertheless, the Hoover message will bo welcomed everywhere.” The News-Chronicle, in a leader, says that President Hoover’s courageous and generous announcement is ’ the most important event since the Armistice and may be h-s <1 isivo as

President Wilson’s entry into the world war. The moratorium will not itself save Europe, but it will give Europe, which is on the brink of tho precipice, a chance to save itself. The Disarmament Conference will meet with far brighter prospects. The Observer’s ■correspondent in Berlin says: A careful study of the situation points to an intensification of the critical state of affairs. Last week’s rise in tho bank rate was effective for only a few days and has not succeeded in stemming the flow of money from Germany, and the country savings banks report a steady run by small investors. It is admitted behind the scenes in financial circles that Germany is on the brink of catastrophe. It is realised here in responsible circles that it is not a matter of months in which settlement measures, but of days. COMMENT OF THE TIMES. Received June 22, 9.35 p.m. LONDON, June 22. The Times, in the course of a leader, says:— “If Mr Hoover’s wise lead is followed by concerted action on th<i parts of others it should check a series of financial collapses threatening the economic fabric of Europe. This bole reversal of American policy is based on a plain admission that European economic difficulties are reacting on American prosperity and is the most impressive admission of the economic interdependence of nations made since the war. It behoves European statesmen tc do the utmost to render the benefits practical and permanent. The problem of war debts reparations is only one of the numerous causes of the economic depression, but afi attempt to restore Europe to normal conditions must be made, and the sooner the better. Mr Hoover’s lead is most cordially welcorned in Britain. France Must Come In. Received June 22. 11 p.m. LONDON, June 22. The Daily Herald says that only in France is there a snarl of annoyance from those whose motto is **llit Germany and damn the consequences.’’ France can hardly expose herself to isolation and condemnation which will be the penalty of refusal to co-operate in the offer which means averting the gravest crisis since the war. The Morning Post, agreeing that Britain can be no hotter and no worse off, adds that painful experience has proved America’s resolute detachment from Europe is not maintainable. THE PROPOSAL PRAISED LONDON, June 21. Mr Lloyd George says; “1 am delighted to hear of President Hoover’s move, which will materially contribute to relieve the world’s economiv strain. Had my proposal to America and France in 1922 to cancel international debts been implemented, we would not have had flic present slump.” Sir Hugo Hirst we comes the proposal and hopes it will be acceptable to France. He thinks that, it will benefit trade. “The best news I have had for many years,” declared Lord Brentford (formerly Sir W. Joynson-llicLs), on the proposal. Mr George Ferrell, president of HuNational Union of Manufnetmers. de scribed it as a splendid gesture. “When America feels the benefit which will result from the proposal she will find it very difficult to reinr pose the repayment of debts after tlio period of the proposed suspension.”