The Guardian And Evening Star, with which is incorporated the West Coast Times THURSDAY, JANUARY 14, 1932. A COMPLEX SITUATION.

Hokitika Guardian, 14 January 1932, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times THURSDAY, JANUARY 14, 1932. A COMPLEX SITUATION.

j The position of Germany at present |i s very complex, and tne outcome [must have its effect on the world at j Large. In oounieccion with Germany j there are the following issues at : stake. (1) the reparations, (2) tne ■settlement of shoiit term credits; (31 the maintenance of the gold standard ; and (4) the general state of 'the country mteruddy which normally has the second largest volume of trade in the world. The statements by the responsible leaders of Germany is that the country cannot meet its ' vnv el)t obligations in regard to reparations, but an endeavour will be made to meet private debts. The maintenance of the gold standard, and the prosperity of the country is bound up in the ability of the country to meet its debt obligations. Its financial position is now at the parting of the ways, and it is for the creditors to say what can be done for Germany at tb Vs time of mi sis. France is the principal creditor and is entitled to be heard in regard to any negotiations. France at the moment has a minor political crisis to settle. M bat with death and sickness, at the present, France is without the help of some of its leading figures. But the French Premier has lately conferred with the United States President personally, and conversations between the French and German Governments have been continuous. France holds to the provisions of the- Young Plan. The Young ■ Plan modified or substituted the Dawes Plan, which in turn revised the Peace Treaty obligations. France considers the Young Plan provides for a possible reduction of the reparations, and must be held involute as a duly executed treaty between Nations. The relief contemplated by the Young Plan in ease the full terms of the treaty should prove to be impracticable, was provided bv dividing the payments for the full term into two' classes, “postponable and “nnii-postpouable,” At the moment Germany is in an exceed! H gly pessimistic mood as to the ability to pay. On top of that, non-official opinion in Britain, both in banking and commercial circles, has accepted the logic of world finance at the present. and regards it as inevitable that there will be an international crash unless the nations are relieved of their war debit payments- This view while it affects Germany primarily, is nlso an opinion of world conditions which are being shaped by the burden of debt placed, upon so many countries as one outcome of the wai. The issue seems to be approaching an impasse. The outcome, or rjatber, the sbane it will itnke, appears to be largely in the hands of France. France must be. more familiar with German finance and industry than any other party in this time of difficulty. As a jealous neighbour. France, is sure to be closely informed about the true position of Germany, and when the early Conference is held there should be a revelation of the true feeling ot France. It is promising to know that British and French statemen are to confer, for it is clear that Mr Ramsay MacDonald has a dear knowledge ot the whole position. It is realised most probably that there can be no assured basis of Germany meeting her obligations. For some assurance on that point, stability both financially and politically will be required, and there is not any sign of that on the horizon. The conference soon to open at Lausanne will be the deciding ground at least to some extent, for nil the cards must now be placed on the table. Still, if Germany can satisfy France as to the true position of her plight, the first stage will be passed, and there will be some hope of the complex situation being unravelled. at least in part.