NOTES OF THE DAY

Dominion, Volume 14, Issue 171, 15 April 1921, Page 4

NOTES OF THE DAY

Seven hundred and fifty miles north of New Guinea, in the Western Carolines is the island of Yap. It is a tiny dot in the ocean with a few hundred inhabitants, but the international problem it presents may be big enough io wreck the Longue of Nations. The difficulties surrounding the disposition of Yap are not insurmountable, but they are extremely thorny. Tho island is an important cable centre in the northern Pacific, and through it tho United States, the Philippines, and Guam have communication with Shanghai. With the rest of the Caroline Islands, Yap, under tho mandate, went to Japan. It is maintained by th© United States Government that President Wilson made on oral reservation with regard to Yap, and that in any case the United States as one of the Associated Powers responsible for the Allied victory objects to the transference of the island to Japan, and does not recognise the right of the League of Nations to dispose of former German territory without America’s consent. Japan in her replies points out that the United States will be no worse off in cable matters with Yap in Japanese hands than it was before the war with the island a German possession. She has talked of concessions in the matter of the cables, but the American Government insists on more than this—the transfer of tho island to international control. If the Japanese refuse to meet the American point of view an impasse will arise. The mandates canndt be altered without the , unanimous consent of the Council of the League of Nations, and with Japan standing out no constitutional -way out can be found. In view of this circumstance and the tension between the United States and Japan the disposal of Yap becomes an international- question of first-class importance.

With the growth of population, it is difficult now for a stranger to say where Petone ends and Lower Hutt begins. There are two shopping centres, it is true, but thero is little or no gap between the residential areas. Lower Hutt obtains its gas from the Petone gasworks, but the terms on which the gas is to be supplied have been the subject of a long-standing dispute. Matters now seem to be reaching a pass where it becomes a case of each - borough doing everything for itself, or for the two to get together and amalgamate. To go on entirely separate and independent courses would entail unnecessary expense for both. It would only be. a temporary arrangement, for ‘in the end the growth of -population and general inconvenience of separate lighting,' drainage, and tramways services, etc., would force union. Retone was constituted a borough In 1883, and when Lower Hutt borough camo into being three years later it served the needs of what was then an isolated township surrounded by farm lands. That stage passed away some time hack, and the moral of the position now is that the longer union is deferred tlio greater will be the waste of money and effort. The lower portion of the Hutt Valley has now reached a stage when it can be most, advantageously and economically developed as a whole.

In view of the huge increase in working expenses, it is something to find the tramways with even a small credit balance at the end of Hie year. The effect of the higher fares on the passenger traffic has been trifling, and with the turn in prices thpre iff not likely to be any question of any further rise to meet higher wages. This year s balance should mark the turning-point in our post-war tramway finance. Since Starch, 1916, working expenses have jumped from ,£118,817 to ,£289,320. This is getting on for a 150 per cent, increase in working costs to carry about a 30 per cent, increase in passenger traffic during the period. The increase in working expenses for the. year is just under £BO,OOO. Half of this represents increased wages and salaries, while dearer coal swallows up .£17,500. It has been suggested that the council might save some thousands a. year by move up-to-date methods of getting its coal from the ships to the power stations. Difficulties in the way have been pointed out, but they do not seem insurmountable. Perhaps the n.e.w Mayor and council will be able to find ways and means of effecting economies that will give us a better balance at the end of 'the current tramways year.

Mr. Hickey thinks that the steps taken to reduce the. number of non-Labour candidates for the Mayoralty were neither dignified, nor desirable. It will be observed that there is no surplusage of Labour c.andidaies, but the public is unable to form any opinion of. the dignity or desirableness of the steps ffiat were taken to prevent a plurality. The public knows the steps by which five non-Labour candidates were reduced to two, but how much does it know of the proceedings of the Labour camarilla which produced Mr. Hickey as its nominee, and which as in Australia would no doubt, give him his marching orders if Wellington elected him? Bas that little clique Mr. Hickey’s resignation written out in advance in its possession, to be passed in if he displeases his masters? It is pleasant to find Mr. Hickey appearing as a censor of dignity and desirableness—even if it is only dignity and desirableness in others. If Mr. Hickey at his leisure after the election were to review the contents of the abusive sheet ho. edits in the light, of their dignity and desirableness it would be a day of hope for the labour movement in New Zealand.

The time is now close at hand when Germany must meet the Allied reparation demands, or expect to .incur more drastic penalties than have yet been imposed. The first half-yearly instalment under the scheme of reparation annuities an amount of fifty millions sterling, falls due on May 1, and up to the present Germany has given no sign that she intends to pay. Her Government has contented itself with making counter-proposals, which are fairly do scribed as palpably absurd, and cannot be regarded as affording any reasonable basis for discussion. Some recent utter' nnces by German politicians and newsjgipcis have hinted at a hope that the

United States might take up an attitude on the reparations question which would to some extent favour Germany. It is now manifest that these hopes built on sand, and (he German Government mav attempt, before it is too late, io reach a settlement and escape tho imposition of additional penalties. At present, however, there seems to be a strong likelihood that on May 1 Germany will stand convicted of wilful default. Exactly what the Allies will do in Riat case has not been stated officially, but it is suggested that they will assume complete control of the German Customs. This, of course, would be likely to entail a considerable extension of tho present military occupation. Tho advisability of comprehensive action on these lines, assuming that Germany persists in refusing to pay, is indicated in the unsatisfactory results of tho arrangement, made to collect fifty per cent, of the amounts duo by Allied customers to German exporters.