DEBTS & REPARATIONS

Waikato Times, Volume 110, Issue 18521, 29 December 1931, Page 7

DEBTS & REPARATIONS

THE CRITICAL POINT. ALL EYES ON AMERICA, INVITATION TO FRENCH PREMIER United Press Assn. —Elec, Tel. Copyright LONDON, Deo. 27. All the newspapers point out thin the Basle report on German reparations merely stated what everybody knew and they express the fear that the Issue will pass Into the realm of political discussion at the Hague while the world's problem becomes intensified.

The Dally Telegraph's diplomatic correspondent emphasises the fact that the crucial point is: Can Germany be gvvited a further moratorium without the Powers knowing whether they will obtain a corresponding suspension of their debts to America? Consequently all eyes are turned toward Washington awaiting an announcement of Mr Hoover’s intentions. A message from Paris states that the British Prime Minister, Mr MacDonald, is reported to have invited the French Prime Minister, M. Laval, to visit London to discuss the matter of reparations policy prior to the Hague Conference. Overtures to Franoe. The Daily Telegraph confirms the report that Mr MacDonald has written a personal letter to M. Laval suggesting a meeting to discuss a common line of policy for the Reparations Conference.

When Sir Frederick Lcith-Ross, Deputy Controller of Finance to the British Treasury w'as recently in Paris he proposed that a five years' moratorium be granted to Germany and that France should abandon her claim to reparations as an inducement to the United States to cancel the British and French debts to her. France’s counter-proposals were that the German moratorium be for two years, adding that France could not see her way to give up her claim to reparations. Sir Frederick and French officials, however, agreed upon the urgent necessity of meeting the situation arising from the refusal of the United States Congress to deal with war indebtedness.

The City Editor of the Times says the markets are resuming in the hope that French and American politicians will not disregard the Basle committee’s warning. The instantaneous response to Mr Hoover’s offer of the moratorium showed that the public feels that war debts payments and the maldistribution of gold were , the chief causes of the world crisis.

In the Paris newspapers the outstanding topic is how the Basle Committee will view the attitude of the United States Congress. They agree that the recommendations in the Basie report regarding the reduction of debt can be dismissed as invalidated by the facts. Newspaper comments are thus concentrating on the assumption that the report virtually declares Germany to be bankrupt. Germany to Blamo. Lp Temps agrees that the d- finite collapse of Germany may be serious, though it insists that Germany alone Is responsible. It adds that the cost of reparations is only 12J per cent of Germany's total indebtedness and says the rest is due to extravagancel

L’lntransigeant describes Germany’s financial methods as frankly dishonest, for by her bankruptcy in 1923, it says, she reduced her national debt to nothing, then borrowed abroad on short-term credit, which she invested at long-term. Tims she was not able to repay her creditors. ‘Now this enriched country declares iherscljf linsolvent,” says . the paper “and spits on her victims."

LATER

NO INVITATION RECEIVED. THE TIME NOT OPPORTUNE. ’fnltPrt T>»»ao »*isn - -Hl'v’tri/' T,o. Cnnvrlg-ai (Received Dec. 29. 10.15 a.m.) PARIS, Dec, 28. M. Laval, French Prime (Minister, denies that Mr Ramsay MacDonald sent an invitation to a meeting in London. He says that a meeting of the headfe of the Governments will only be opportune when the reparation experts have completed their mission. TERRITORY FOR DEBTS. MR McFADDEN’S FINE IDEA. United Press Assn.—Klee. Tel. Copyright. (Receivod Doc. 29, 12.30 p.rn.) NEW YORK, Dec. 28. Congressman McFadden. the fiery critic who recently excoriated Mr Hoover, tine President, thinks it would bo a fine idea if France and Britain gave their colonial possessions adjacent to the American coastline in lieu of war debts. The islands St. Pierre, Miquelon, and the Martinique Group he would take from France, and the Honduras and British Guiana from Britain .