DEBT IMPASSE

Hokitika Guardian, 1 July 1932, Page 5

DEBT IMPASSE

GERMAN POSITION REFUSAL TO PAY MAINTAINED. (British Official TF ireless.) RUGBY, June 23. There .have been important developments at the Reparations Conference at Lausanne., when -he ciitiea] pha-e in the proceedings turned, largely owing to the intervention of Mr MacDonald. i■ T-lie publication by Chancellor Yon Papon ’of r. statement regarding the long yesterday, between the delegates of France. Gei many -and Britain, .led to fears that the Conference was in danger. these fears were dissipated after the meet ing held this evening, at which the six inviting Powers proceeded to make ;arangements completing the ,vor,. of Die conference.

At the conclusion of yesterday's meeting, a communique, was issued stating that Mr MacDonald would report on the position, resulting from the Franco-Germiix conversations. >A c'oud was cast over the couie’ence when Captain Von Papon’s vcrsi-m 'of Tuesday's conversations was published, to correct allegedly misleading reports in the French press.

.In 1 the course of Captain Von Pnpan’s announcement it was stated that Mr MacDonald had asked the German Chancellor whether he could nob do tome thing to bring about a final so'ution. The German Chancedor was stated to • have replied as follows: “The confidence of the world can only be restored if the victorious Powers could decide to remove the discriminations contained in the Treaty of Versailles If in this manner, German equality and security were re-established, the vT.aiicellor could envisage the' possibility of Germany participating in a g&neial effort towards the reconstruction of work and trade, in the .form of a contribution which pre-suppo’ts, however,, the re-establishment of the economic balance in Germany.’’ The publication of this document created iliveiy interest at Lausanne, and gave rise to many unfavourable, rumours.

Chancellor Von Papan and M. Herriot had further conversations, and Mr MacDonald met them in a ’further attempt at mediation: .Signor Grandi also attended. Later, th 6 four statesmen left th 6 hotel and strolled .along the lakeside to Chateau Douchy,"where they were joined by the delegates from Japan and Belgium. At I the meeting of these six inviting Powers, which followed, general consent was secured to. th*» setting up ot a committee of thirteen members, over, which Mr MacDonald will preside, to draw up a plan for settlement of reparations. A second committee including the Minis) ers of Commerce, will also, be formed to study the economic arisis- and present tendencies in world trade. It is understood that the work of the conference will continue, although the heads of the delegations for the present will be absent from Lausanne, Mr MacDonald returns to London to confer with his Cabinet rol-h-agues, who are going to the Ottawu conference. Von Papen is returning to Berlin, and M. Harriot to Paris.

Von Papen has accepted the principle of making a final payment to be made onlv when normal conditions are restored in Germany.

Th e Conference will consider fixing a period of suspension, also the conditions of the payment and also the amount thereof.

The “Times,” discussing Lausanne, says The mere postponement of the reparations settlement would 'os

calamitous. The world still awaits an offer from the' German Government. The Hoover scheme sets up a goal of major performance towards wh’-ch the Disarmament Conference must henceforth strive. Its completeness has made a favourable impression on the world.

A TRIANGULAR DISCUSSION

LONDON,- June 30.

Mr Ramsay MacDonald has spent a wearying -day mainly in conferring with Captain Von Papen and M. Herriot.

Emphasising the importance of the: ! isauies /at. stakei, Air Mai Donald insisted on the psychological importance of France dropping th 6 word “Reparations,” and of the substitution of the phrase “Restoration Payments,” in the hope that it might enable the French and German Governments to face their hostile Parliaments with a settlement, but the present difficulty is to devise -a scheme whereby France will derive a material benefit from the so-called “restoration payments.” German circles, hint that the Reich will subscribe to li “restoration pool’’ of which the Bank of International settlements is th e the amount suggested "being one hundred and fifty million stealing, which is ■•’bout two of the annuities under the Young Plan. Berlin telegrams, however, suggest that a subscription is still conditional on the abolition of and discrimination against Germany under -the Versailles Treaty, which France and the other Powers, thus far, have refused to consider.

A committee of seven under Mr MacDonald’s chairmanship, continued sitting until midnight, discussing a pool to .assist European reconstruction. Then the delegates adjourned to partake of beer and sandwiches, but no solution was found when they reassembled, so they adjourned until the morning.