DEBT SITUATION

Wairarapa Daily Times, 25 January 1932, Page 5

DEBT SITUATION

NO LAUSANNE CONFERENCE ANGLO-FRENCH DISCUSSION. Press Association Electric Telegraph Copyright 5 LONDON, Sunday. There is to be no Lausanne Conference on Monday. The latest development, is a meeting of M. Laval and Air. AlacDonald, probably at a Channel port in the middle of the week, to discuss reparations and war debts.

STANDSTILL AGREEMENT.

PROLONGED FOR A YEAR,

BERLIN, Sunday

The Foreign Creditors’ Committee has agreed with the German committee representing debtor interest on the prolonging for a year from February 29 of the existing standstill agreement, subject to modification and permission to seek earlier maturity if unfavourable developments compelled the creditors to resume freedom of action. Tire 6hort-term debts involved amount to £268,000,000, which it is considered Germany can carry when normality returns.

Tire foreign bankers’ report condemns the raising of trade barriers and says it is impressed with the sacrifices of the German people. It is imperative that hindrances to development should be removed and that no time should be lost. "Countries grow poor together and the obverse also is true,” the report observes. "They all grew rich together, lightening their burdens and greater freedom of trade enriching one country would enrich all.”

FRENCH: ATTITUDE. "RULES OF HONESTY.” PARIS, Friday. AI, Laval, winding up the debate in a crowded Chamber of Deputies, said that France would not allow any treaties to be prescribed. France would only accept a reduction in reparations' in jmoportion as she was granted reductions in war debts. The AToung Plan provision could not be modified. France had made many gestures of goodwill to facilitate European union, but could not agree that the will of Germany alone should dictate a solution. The whole Chamber cheered this emphatic declaration. ‘ ‘ Alorality, ’ ’ said the Premier,’ "cannot be banned from international action. The same rules of honesty applying to relations between men apply to international relations.”

He said that he and Mr. MacDonald had not yet agreed about the future of the Reparations Conference, but it was only a question of time.

■.Referring to disarmament lie said: “ France, while conforming to the Leaguo Covenant, will not accept improvisations compromising her security.” She had set the example for ten years by a reduction of man power and armaments, but would go no further. Prance would submit positive proposals for political conditions of mutual assistance. Reduction of armaments would then be easy to work out. The Chamber passed a vote of confidence by 303 to 265. AMERICAN STATEMENT. AGAINST EXTENSION. WASHINGTON, Saturday. Senator Borah has issued a statement against the extension of the Hoover moratorium under present circumstances and placing responsibility upon France for leadership in Europe at a time when disaster may be impending. Taking issue with M. (Laval’s statement of policy, he said: —“Why should the United States be interested therein? If France would put out a programme that points towards the rebuilding of Europe, 1 venture the opinion that the United States would be found extremely interested. The United States has never since the world war hesitated to help when help was toward the real relief of Europe.” The “New York Times” Washington correspondent states that Government leaders do not disguise their pessimism, which is shared by Senator Borah, over the course of events in Europe in the next few weeks or months should that continent stand on its old ground and permit matters to drift, but it is again asserted on authority to-day that if Europe does not act, this country will not move even to prevent a serious crash.