REPARATIONS

Rotorua Morning Post, Volume 1, Issue 63, 5 November 1931, Page 3

REPARATIONS

(British Official Wireless)

MISSION TO AMERICA FRANCE GIVEN FREE HAND TO MAKE ARRANGEMENTS WITH GERMANY MUTUAL CONFIDENCE NE'EDED

RUGBY, Tuesday. Cominenting on the return to Paris of M. Laval (the French Prime Minister) the "Times" in a leading article, emphasises the importance of M. Laval's visit to America following that paid by him to Berlin. It says. "M. Laval knows preeisely where he stands. He has a free hand and is going to try to make a lasting arrangement with Germ;any on the basis of existing treaties, whether signed at Versailes or The Hague. He has, moreover, plainly indicated that he intends to give due regard to the present economic crisis. He agrees that Germany will eertainly not he in a position in July next year to resumo the full suspended reparation payments. "Even if Germany is able to raise and transfer the money, the transaetion would only further unbalance the monetary situation, and so it is now generally believed that the amount Germany will be asked to pay will be within the compass of the unconditional annuities and that a large proportion of it will be payable in kind. "For that purpose the joint economic committee which was arranged during the Berlin visit should prove a serviceable mediumi. "The first problem that must be squarely faced — and this really concerns Great Britain and the United States more closely than Franee — is how German solency is to be maintained when short term credits become -due for payment. "The success of any method must really depend, first and foremost, upon ■ the estahl:shment of Franco-German relations on a basis of mutual confidence. In so far as that is the aim of M. Laval he will have the cordial sympathy and support of British opinion, public and official. If M. Laval will develop his proposals on broad constructive and not too rig:d lines he may yet save the situation which is daily becoming worse. Maintenance of German solvency is an essential condition to any concerted action for European construction."