REPARATIONS

Wairarapa Daily Times, 11 January 1932, Page 5

REPARATIONS

GERMAMY SEEKS RELIEF ON VEEGE OP COLLAPSE. .Press Association Electric Telegraph—Copyright BERLIN, Sunday. Dr. Bruening informed Sir H. Rumbold, British Ambassador, that Germany is unable to l pay her reparations and that her delegates to the Lausanne Conference must press for their total abolition. Authoritative critics point out that Germany’s economic life is now on the verge of collapse, which certainly cannot be avoided if an attempt is made to impose the reparation burden. If Germany is relieved of this burden she will be able to pay her private debts in due course, but she cannot possibly pay these and reparations. cancellation demands. FRANCE HOSTILE. LONDON, Sunday. The week opens with dramatic developments in the European situations, the chief of which is Dr. Bruening’s declarations of Germany’s Lausanne demand for the cancellation of reparation debts. At. Laval’s embarrassments owing to the death of M. Magi not and the illness of M. Briand, necessitating the reconstruction of tire French Cabinet, led the British Government to propose that the Lausanne Conference should open pn January 2b, instead, of -January IS. France and Germany have intimated their assent. France’s immediate reaction to Dr. Bruening’s statement is naturally hostile. Already there is a suggestion that the situation calls for a National Government, to face the attempt to tear up the Versailles Treaty. Dr. Bruening’s statement has caused a sensation in France, producing allegations that Dr. Bruening has torpedoed the Lausanne Conference. BRUENING’S WARNING. BERLIN, Sunday. Dr. Bruening, in a later official statement, agreed that the Lausanne Conference should meet on January 25 and confirmed his declaration to Sir 11. Rumbold, adding that any attempt to maintain reparations must lead to disaster, not only in Germany, but throughout the world. It was imperative to find courage not to allow economic problems to be subjected to political considerations. Referring to the Basle report, Dr. Bruening declared that this not only proved Germany’s inability to pay, but showed how clearly reparations were connected with the general situation and how thoroughly conditions had changed since the Young Plan was introduced. Moreover, it showed that Germany had taken measures unparalled in modern history. It had proved a onelsided effort. Dr. Bruening has invited llorr Ilugenberg, Nationalist Leader, to confer regarding the extension of von Hindenburg’s Presidency, on which question Herr Hugenbcrg deferred an answer till January 11. DR. BRUENING’S “COURAGE.” GERMAN PRESS SUPPORT. (Received Monday, 9.55 a.m.) BERLIN, Sunday. The entire Press supports Dr. Bruening’« courage and determination and promises him and President Hindenburgh the nation’s support in the forthcoming foreign and political battles. The newspapers depreciate foreign excitement, since Dr. Bruening has disclosed nothing new. GOLD STANDARD TO GO. (Received Monday, 9.55 a.m.) HAMBURG, Sunday. Mr. Maynard, speaking here, considers the various nations, including Germany, South Africa and Holland should abandon the gold standard in 1932. This, he said, is an economic necessity for Germany. BANKER SOUNDS WARNING. A TRANSFER PROBLEM. LONDON, Sunday. Addressing a luncheon assembly on the new liner, Strathaird, the Hon. Alexander Shaw spoke impressively of reparations and war debts, mentioning that he had to be cautious as he was a director of the Bank of England. He su'd it should never be forgotten that while America had reunited IS per cent, of Britain’s War debt liability, Britain as a creditor had forgiven the APic-s 70 per cent, of their War debts. Britain in old ware frequently had granted subsidies to her allies, not as loans but as free grants. In the Great Wat. where an American shell was fired by American artillerymen from American guns, the United States did not charge against the Allies either her soldiers’ pay or the cost of the gun and shell, but where an American shell was fired by a British or a French soldier it created a gold debt due to the United States. The same extraordinary rule held between all the other Allies. Novel in history was lop-sided commercialism so misapplied. He did not believe that the masses of any country thought then about repayment, or wanted it. They gave money, energies, and lives for the common cause. Mr Shaw paid a tribute to America’s part, in saving the freedom of the world, and said he could not imagine that she would now insist on a course which would ‘ ‘ postpone the Greek kalends,” the recovery of Europe and indeed, of the whole world. He described the problem as a twofold collection of transfers. The nations were confronted with the fact

that there was not enough free gold in the world to meet the bill for reparations and War debts which therefore were best paid in goods and services. The total value in goods spread over 50 years with which to pay America if she insisted -would amount to the equivalent of £4,500,000,000. This continual drain of goods, besides being unwanted, was dislocating her own production and impoverishing America’s foreign customers. “As regards the money market of the world, the symptoms are those of a general malaise, punctuated with panic, and an atmosphere of menace hangs over Europe,” he continued. “Distrust gives rise to armaments, and these to more distrust and the stagnation of industry. It is no exaggeration to say that the economic and social structure of Europe is daily moling nearer to a precipice.” Europe, he added, was in a position where willingness to pay, however mirable, was no longer relevant. The blunt truth was that if things went on as they were going the choice ivolild simply be between repudiation and chaos.

“May I suggest the healing message spoken long ago, ‘Forgive us our debts as we forgive our debtors’? These words teach us the wise and only practical economic policy.” Mr Shaw added that he had spoken plainly because these were no times for false and easy optimism. HARD FACTS. MUST BE FACED. (Received Monday, 12.15 p.m.) LONDON, Sunday. Mr Ramsay MacDonald, apropos of Dr. Bruening’s declaration, expresses the certainty that it will be found all the Governments concerned realise that European recovery depends upon facing hard factsli. Dr. Bruening’s declaration makes the Lausanne meeting more necessary than ever. It is impossible to leave things as they are. french desire. FRANCO-BRUTISH AGREEMENT (Received Monday, 12.15 p.m.) PARIS. Sunday. The general feeling is that a prelim - inuary Franco-British agreement is more essential than ever and that the German bombshell, possibly with further explosives to follow, increases the likelihood of the usefulness of a meeting between Mr Ramsay MacDonald and M. Laval.