The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, JANUARY 5, 1932. DEBTS AND REPARATIONS.

Hokitika Guardian, 5 January 1932, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, JANUARY 5, 1932. DEBTS AND REPARATIONS.

With commendable promptness the Advisory Committee \yliieh ims been meeting at Basle to consider international settlements has issued its report, and the impression produced by perusing it is that the Young Plan is now condemned to radical modification, if not to final suspension. The report insists that Germany will not be able to resume payment of the “conditional” annuities alter the one year of respite allotted by the Hoover Moratorium has expired. But it further declares that “Germany’s problem is a world problem,” and that what Is required now to restore confidence and prosperity is “the adaptation of reparations and war debts to meet the needs of the world’s unheaval. Of course, the

Basle Committee was appointed only to analyse and define the present financial situation, and not to recommend methods of dealing with it. 'Jhe French and Belgian delegates were therefore quite justified in their refusal to commit themselves to specific proposals. Apparently the French members of the Committee maintained that Germany could and should continue to pay reparations, and the Germans insisted that their country cannot and will not submit to this financial 'Servitude' any longer, It must be admitted that the Germans have certain strong arguments on their side. For, as the Committee’s report point* out, the Young Plan was based on the assumption that the world’s trade would constantly expand; but the collapse of international trade and the fall of various currencies in relation to goid have disappointed these expectations and made the continuance of reparation payments- viitually impossible. Against this, France urges with much force that the German.-, since the war, have put hundreds of millions into public works and national defence, and the construction and projection of very expensive battleships in particular :* positive proof that Germany, if she cares to do so, can meet her obligations. Manifestly, l these questions and the policy rising out of them demand immediate discussion between the nations chiefly concerned. Mr MacDonald, after reading ■the' report, suggested that the Governments ought to meet “without a day’s unnecessary delay.” Accordingly, France and Britain are to hold a conference on January 18, and they have invited the other governments interested to send delegates to The Hague to participate. This i* a step in the right direction, but the refusal of the United States to take part in the proceedings may render the conference futile. Apparently Washington still holds that “the question of reparations Is entirely a European problem”; which means that only when the European Powers have settled their dispute about reparations will the United States he prepared to consider the readjustment of debts. Even when that difficulty has been got over, American public opinion will no doubt support Mr Borah in his contention that, unless Europe cuts down its expenditure of armies and navies, it has no right to expect anv deductions frem the debt bill. But if, on these grounds, America holds aloof from the conference, the difficulties of the European Powers are still a long wav from settlement