PROBLEMS OF EUROPE,

Taranaki Daily News, 30 December 1922, Page 5

PROBLEMS OF EUROPE,

QUESTION OE CONFERENCE. REPARATIONS COME FIRST. BORAH’S MOVE RESENTED. AMERICAN VIEWPOINTS. By Telegraph.—Press Assn.—Copyright. Washington, Dec. 28. President Harding has sent a letter to Senator Lodge, declaring that the passage of Senator Borah’s resolution requesting an economic and disarmament conference is undesirable, because of the false impression which may be conveyed to Europe, and even more so, because of the wrong impression it conveys to oui* own people. It would be furile to call such a conference until the President had learned whether the move would be welcomed by ether nations. If Congress desired to be helpful in the present situation it should modify the laws preventing American representation on the Reparation Commission and prohibiting the American Debt Commission grantingmore liberal funding terms to America’s debtors. Settlement of the reparations question must underlie any economic rehabilitation of Eulrope, but the United States would never say to one nation what it should pay, or to another what it should accept. PRESIDENT OPPOSED. The President indicated that he resented Senator Borah’s move on the grounds that it seemed to assume that the executive branch of the Government was not fully alive to the world situation, which was of deep concern to the United States. European nations did not share the United States’ view that the foreign debt question was distinct from reparations. It was wholly inconsistent to invite a conference for the consideration of questions in dealing with which the Government was denied all authority by Congress. President Harding stated that the limitation of land armaments was impossible at the present time, and as to further limitation of naval craft, such as the restriction of the construction of auxiliary craft, submarines and aircraft as the House of Representatives proposed, such action was desirable, but it would be better to postpone such a step until France and Italy had acted cm the Washington Conference treaties. Discussing President Harding’s letter in the Senate, Senator Borah asked whether the President’s suggestion that Congress should free the hands of the foreign funding commission was a request to Congress to give the commission unlimited latitude.

Senator Lodge, who conferred with President Harding this morning, replied that the President had in mind a greater latitude for the commission on two points, the rate of interest and the length of time within which the debt was payable. No consideration was given nor would be given to the cancellation of debts. The President’s letter will seemingly have no effect on the Senate situation. TO FIGHT THE ISSUE. Senator Borah expressed his determination to fight the issue to a finish, though he admitted the administration appeared to have the better of the Parliamentary situation at the moment and might defeat him. •Senator Borah later issued a statement to the effect that President Harding’s suggestion to Congress widens the Debt Funding Commission’s powers and will remove the iban on American official membership of the Reparations Commission. It is significant that the suggestion was made to the Administration by Mr. J. P. Morgan. Speaking in the Senate, Senator MeNarry said Senator Borah’s proposal cannot be construed to imply any obligation calculated to involve any aggressive or defensive military action. The plight of the American farmer makes it necessary that the Government should do everything possible to re-create foreign markets. THE BRITISH SCHEME. REDUCTION OF THE DEBT. Received December 29, 5.5 p.m. London, Dec. 28. It is understood Mr. Bonar Law fs submitting to Cabinet an entirely new reparations scheme, providing for a reduction of Germany’s indebtedness but enforcing penalties in the event of defaults. It is believed the Government declines to be bound by the Balfour note. —Aus.-N.Z. Cable Assn. THE FRENCH ADAMANT. WILLING TO ACT AL-'NE. Paris, Dec. 28. The Matin, commenting on Germany’s default, says that France is desirous of acting in full accord with the Allies but, if a divergence of views occurs regarding sanctions, France, will act alone, taking the measures necessity to ensure the execution of the plan already prepared. Le Journal says M. Poincare will most probably do nothing until he has placed the position before Mr. Bonar Law and appealed to him to make common cause with France.

The Reparations Commission makes no suggestions, leaving the Allies entirely free to follow or disregard the indications contained in the report. The Petit Parisien, referring to the German default., says that only in the improbable event of the Allies refusing to draw just conclusions from the situation may France be driven to act alone. POLICY,, OF ITALY. AGAINST COERCIVE MEASURES. Received Dec. 29, 8.45 p.m. Rome, Dec. 28. .Signor Mussolini, at a Ministerial Council, explained that the main reason whv he would not visit Paris is the continued Anglo-French disagreement. He admitted the Reparations Commission was technically correct in regard to some of its decisions, but the consequences which France, intended to draw therefrom were disproportionate and were not contemplated when the Italian representative signed the majority report. ; Signor Mussolini has definitely com- • nutted himself against the French ocI cupation pf the Ruhr, and will not con-

sent to any policy of 1 violence, even on evidence of German bad faith. Italy would collaborate with the Allies for pacific purposes only; he would not go to Paris to help to inaugurate a new war policy. —Aus.-N.Z. Cable Association.