The Waikato Times With which is Incorporated The Waikato Argus. MONDAY, JULY 9, 1923. CONFERENCE WITH FRANCE

Waikato Times, Volume 98, Issue 15283, 9 July 1923, Page 4

The Waikato Times With which is Incorporated The Waikato Argus. MONDAY, JULY 9, 1923. CONFERENCE WITH FRANCE

There can be no i question that friction of a serious nature has arisen between Britain and France over the occupation by the latter country of the Ruhr. It was quite certain that this would eventually take place, for both sentiment and interests combined to produce strong disapproval in Britain of the line which France had taken. It was felt that the shortage in payments from Germany was not sufficient to warrant an invasion of the country. Then again no one who is qualified to form an opinion believes that Germany could ever pay £G,GOO,000,000. France, however, has refused to reconsider this amount, and her statement that she will remain in the Ruhr until it is paid amounts to a declaration that she intends to annex the district. It is, of course, a purely German population, and the people will not work for the French, with the result that one of the richest areas in the world is shut down and produces nothing. The effect on British trade is serious, for all neighbouring countries suffer from the collapse in Germany, which has been steadily growing worse. Large numbers of people in Germany are finding it difficult to maintain life. Workmen have had constant increases in wages, but even with these they find their situation much worse. Germany's position before the war was that of an importer of food, to the extent of about one-third of her total consumption. With a lower standard of life this proportion would be diminished, but she would still require to% import an appreciable amount. The utter collapse in the exchange value of the mark makes it very difficult to do this, and soon it will be quite impossible. Their exports consist of goods manufactured from raw material purchased whemthe mark had still some small value. The import of further raw material will be difficult. This, however, is but one of the difficulties which faces Germany. Some day France will tiro of her present methods; the mark will begin to have some value again, and prices which have soared to impossible heights will fall again, and business men of all descriptions will go bankrupt. It is from a Germany in this condition that France expects to draw the millions that are to pay reconstruction and enable an army to be maintained without taxing her own people. The mere statement of the position shows has impossible it is that such payments can take place. It was possible to obtain a considerable amount from Germany, though nothing like the figures that were stipulated. To do so, however, it was necessary to give her some breathing space to recover from the war, but this was not done, and Germany's capacity to pay has therefore been greatly diminished. Every week that the French occupation lasts reduces the amount that will ever be recover- : ed and postpones the date when any payments can be made. 'Die British Government have believed all this for some lime. Mr Lloyd George held this opinion, although he was a party to the impossible demands, and to giving France some rights to take the action she has done, although it is generally held that she has exceeded any authority given by the Treaty. It may be asked .why the Homo Government have not macfe their protest earlier, but the unfortunate fact is that there arc still many people who conceive that whatever France may do to Germany is justified. Germany certainly behaved very badly, but it will not put the mailer right for France lo | behave in the same way to Germany. ] These people win; apparently never | heard thai the nations of Europe were j ever grouped in a different manner lo j that of Ihc late war, applaud the aclion of the French, and make it very clillioult for the Home Government to put forward any effective protest. Lord

Rothcrmere, who has succeeded to the

control of much of the Norlhcliffc

press, has been conducting a campaign of "Hats off to France." It is impossible lo say what effect lie may have had, but as some of the Conservative papers lake the same line, the Government have evidently hesitated before protesting to France. They have at last done so, and France has treated the question in a very cavalier way. Lord Curzon has apparently been insistent, and if he slicks lo the point, there may be some result. If the American Cabinet could he induced to side with Britain, the effect would be greatly increased, but American politics are hard to fathom. There can be no question that they arc genuinely anxious for peace, but at Ihc same time they arc resolved to take no aclion that might help to bring it about. France is in a very different position to Britain; she produces the food required in the country. She apparently considers that she can afford lo bring her neighbours to ruin, although the neighbours are scarcely likely to bo willing lo submit. At the same time there are signs that the opinion of France is not solidly in support of the present French Government. Their insistence that passive resistance in the Ruhr shall cease looks as if they would be glad to retire from the position if they could save their face in any way. There are prudent people in France who are not pleased to see their country in opposition to the rest of the world. That feeling would be greatly increased if America co-operated with Britain. About three months since France endeavoured to form an anti-British alliance with Belgium and ftaly, and America, as soon as she heard of the project, expressed her strongest disapproval, and in consequence France dropped it. If we could sec an end of the Ruhr adventure, there would be a possibility of business improving. The prospects are worse to-day than they were six months ago, and if the present position lasts, they will grow worse again. People have a choice between indulging their resentment, or acting on common-sense lines. They should understand, however, that if they choose the former, they must pay for It."