The Guardian (And Evening Star, with which is in corporated the West Coast Times.) FRIDAY, FEBRUARY 8th, 1924. MORE HOPEFUL OUTLOOK.

Hokitika Guardian, 8 February 1924, Page 2

The Guardian (And Evening Star, with which is in corporated the West Coast Times.) FRIDAY, FEBRUARY Bth, 1924. MORE HOPEFUL OUTLOOK.

Tiikuk is the feeling, growing that there is a more hopeful outlook in regard to affairs in Europe. The foundation for this is centred to some extent in the British overtures to Russia in regard t > a basis for trading relations, coupled with the cordial letter from the British J’liine .Minister to Franco. There was a note of “agreeing to differ” about Mr MacDonald's overtures which would allay any feeling of belligerency. At the same time it was made plain that, there were matters upon which there would be differences of oj)itlion 5 but the hope was expressed of approaching tho subjects iti such a way ns not to breach the Entente, but, rather to use the Entente as a. stepping stone to an Understanding which, if not an actual settlement, would be a frank understanding of differences, and a fair statement of the case for each without any hidden meaning or reservation. Again, Era nee is proving less aggressive in tli-s occupied territory, and as a contemporary remarks in conjunction "ith a substantial reduction in the occupying forces, the resumption of full diplomatic relations amounts evidently to a vert important modification of the policy of extreme pressure which found expression in the occupation of the Ruhr. Tiie inference appears to be in every way warranted that France and Belgium both are now much more inclined' than they were last year to consider an adjustment which "ill give ('formally a reasonable opportunity of meeting her reparation debt. This implior change of attitude is in accordance with reason and common sense. In view of the lengths to which Germany has gone in persistently evading her reparations obligations, she would have had no right to complain about even stronger measures than the occupation of the Ruhr. The mere continuance of the occupation, however, evidently cannot be expected to yield such results as the Allies desire. The weakm ss of the policy of pressure pursued by France and Belgium in the Ruhr is that it has done as much, if not more, to reduce Germany’s ability to pay reparations than to awaken, in M. Roilicare’s phrase, 'the will to pay.” Germany is actually and potentially wealthy, chiefly because of her wonderful industrial organisation, of which the Ruhr is the heart. If Germany is to pay reparations she must produce on a big scale, and she cannot- do this while the Ruhr is occupied in the conditions that have obtained during the past year. Even in the conditions that now appear to be developing the reparations question will not be settled easily. Such a change of attitude by France and Belgium as is indicated will do a good deal, however, to open the way to a practical consideration and treatment of the whole question. In

particular, it now seems more likely than it did that serious account will he taken of the reports and recommendations of the expert advisory committees which are at present investigating Germany's capacity to pay. A reasonable attitude on the part of European Allied Powers evidently is indispensable if American participation in the work of these committees is to be really useful and effective. There is no doubt that this participation is an important departure from the policy of isolation to which the United States inclines. It is an offer of co-operation which may he very helpful if it is accepted in the nglit spirit, hut one which would speedily he nullified if France persisted in her past refusal to consider any other ideas’ than her own on the subject ol reparations. On the whole, therefore, the general outlook is brighter and better and it will he an immense relief to tlie world at large if the outlook for Europe as a whole took on a more settled state.