ECONOMIC IMPASSE.

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

ECONOMIC IMPASSE.

REPORT OF THE EXPERTS REVIEWED BY BRITISH PRESS, i , ■ ■-i GRAVITY OF PRESENT CRISIS. (Official Wireless.) (Received Dec. 29, 1 1.45 a.m.) RUGBY, Dec. 28. Commenting on the Basle report, the Times says its very limitations only make plainer than ever the opportunity offered to statesmen of finding, by comparative effort, some way out from the economic impasse. The experts’ careful statement- leaves no room for doubting that the economic gravity of the present crisis exceeds in magnitude the relatively short . depression envisaged in the Young Plan, to meet which the provision of a two years’ moratorium on conditional or even unconditional pay* ments, Is suggested.

Germany's Poaltlon.

After examining the situation oreated by the withdrawal during the past year of foreign funds and the fact that short-term credits are only being sustained under a “standstill” agreement, due to expire In February, the Times says: “Unless Germany's reparation liabilities are fixed at a figure to enable foreigners to lend with full confidence in her future not. only will she be unable to pay the reparations but she will be forced to reduce her economic activity to a very low level, to the manifest detriment of the rest of the world. More, the moratorium leaving the ultimate liabilities untouched would simply lead to a still more dangerous crisis. That is why the British Government stressed' strongly in its recent note for a permanent solution.”

Need for Stability.

The Dally Telegraph says: “Without stability the world cannot recapture prosperity, and as a first condition of stability, a permanent financial settlement among the nations is essential. We may be justified in saying that the directors of the German economic policy have set themselves to create conditions in which the payment of the obligations imposed upon her by defeat in the war would be impossible, but that does not give us a means of exacting money. The duty of the Governments In conference is to devise a scheme whioh will harmonise international debts with present conditions. Need for Thoroughneea. The News Chronicle says:—“Until the whole question of Germany's financial situation, is satisfactorily dealt with the ordinary movements of capital between one country and another will not be resumed. Trade will oome to a standstill, and the financial paralysis from which the xvorld .1* suffering will continue and intensify.’'

INTERNATIONAL CONFERENCE. NO ARRANGEMENTS MADE. STATEMENT OF FRENCH PREMIER, (Omctaf "Wireless.) (Received Deo. 29, 11.45 a.m.) RUGBY, Dec. 28. ‘The date and venue of the international conference of the Governments concerned in the reparations problem have still to lie fixed meanwhile discussions on the technical issues that arise are proceeding between the French and English experts. A report has gained ourrency in Paris that an early meeting between the heads of the British and French Governments was in prospect, but M. Laval to-day denied that he had been Invited to confer with Mr Ramsay MacDonald in London. He said it was not, at present, contemplated to hold any such meeting, which would only be opportune after 'the experts have completed the task on which they ar« now engaged.

A GENERAL MORATORIUM. ANGLO FRENCH AGREEMENT. MAIN DIFFICULTIES OVERCOME. United Press Assn.—Elec. Tel. Copyright. (Received Dec. 29, 12.30 p.m.) LONDON, Dec. 28. The Sun’s special correspondent understands that Britain and France are nearing a reparations agreement in readiness for the international conference. This will enable granting Germany a general moratorium, to be followed Immediately by America’s European debtors seeking a similar moratorium from America. The conference will probably take place at Geneva or Lausanne on January 20. America’s unyielding attitude led Britain and France to overcome their three main differences. France forgoes her Insistence upon priority to Gocmany’s commercial debts in the event of a further general moratorium. France, further Insisted that the principle of the Young Plan should remain intaot, on whioh Britain concedes. Brltalh wanted the forthcoming conference to negotiate for a promanent arrangement, but is now prepared to agree to a provisional adjustment.

The hasty -convening of the conference will probably preclude the direct representation of the Dominions, hut in the event of a general moratorium they will not bo affected; it will be virtually the re-opening of the Hoover Plan and Britain will similarly relievo Hie Dominions of-their -Government debts to Briiain. The next move would be the European States’ request to the -United States to concede a general moratorium.