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Hokitika Guardian, 9 May 1931, Page 4

Tiya sensation caused in Europe I>\the announcement that Germany and Austria bad agreed in principle to negotiate a Customs union has been mainly political, since in several quaitors—rFrnnoe particularly—this move has been interpreted as the first step towards a more comprehensive union between the two countries. The strictly political aspects of the question, and its legality under the Treaty .of St. Germain and the Protocol signed by Austria in 1922, need not bo discussed. says a London financial journal, but the economic implications of the announcement are also of considerable interest. The proposed scheme aims at bringing into ac-c-ord tbs ■economic and tariff policies of the two countries, and states that, under full maintenance of their i’dependence, and with due respect for the obligations entered upon with other Powers, the treaty is destined to mark the beginning of a new order of European economic ' conditions on lines of regional agreements. Both countries, moreover, are to declare in the treaty their willingness to enter into negotiations of similar agreements’ with any other country that desires it. The Customs organizations of Germany and Austria will remain separate. Theoretically, in fact, the proposed treaty appears relatively simple and innocuous, but its significance in practice depends on whether it represents primarily a desire for economic rapprochement between Germany and Austria, or a sincere attempt to end the cut-throat, competition in erecting higher ’ and ever higher tariff walls, and to introduce in Europe an era of freer trade. The announcement has for the- moment left Europe guessing, and until the intention behind the proposed treaty and the manner of its application is elucidated, judgment in effect must bo suspended. In a statement in the House of Commons on Monday, Mr Henderson, Secretary of State for Foreign Affairs, explained that lie bad taken steps to have the matter concidered by the Council of the League of Nations, and defined the British Government’s attitude as one of complete reserve.