LOAN TO GERMANY

Wairarapa Times-Age, 25 July 1939, Page 5

LOAN TO GERMANY

WITH ARMS LIMITATION BASIS OF REPORTS MR R. S. HUDSON’S TALKS WITH HERR WOHLTAT. "OFFER NOT APPEASEMENT." (Independent Cable Service.i LONDON. July 24. The storv that Germanv was unofficially ol'feretl a loan of £],()()().()()().()()()• by Britain to make peace erealeil a sensation in Europe at the weekend, especially as the report followed a statement by a spokesman in Berlin ol the Nazis’ hopes of a peaceful solution at Danzig, which was responsible for a notable upward trend in Wall Street.

Last night, Mr R. S. Hudson, Secretary of the Department of Overseas Trade, whose name was linked with the peace loan proposal, in an interview with the "Daily Express declared: "The offer is not appeasement. It is conditional and is dependent on Germany’s disarmament.” According to the story that had been circulated during the weekend, certain influential unofficial Britons suggested to Herr Wohltat, who is the economic adviser to Herr Hitler, that if Herr Hitler agreed to disarm a vast loan might be given to Germany to enable her to restore her industry. Also to help Germany to recover the trade she would need if she gave up manufacturing armaments on a huge scale she would be permitted to share with the possessors of African colonies in the development of these possessions. The story was given the greatest prominence in the three strongest anti-appeasement newspapers, the “News Chronicle,” the “Daily Telegraph,” and the “Daily Mirror,” but the Sunday newspapers carried a categorical denial by a British Government spokesman, who declared that the Prime Minister and members of Cabinet were astounded at the story. “BLACKMAIL PAYMENT.”

The “Sunday Express” said that such a loan would be the biggest blackmail payment in history. It understood that Herr Wohltat had contact with a person closely connected with the British Government, but not a member of the Cabinet. The plan suggested to Herr Wohltat was not a cut and dried series of proposals, but an idea which he might put up to Herr Hitler. In the interview with the “Daily Express” Mr Hudson said: “The facts are that Herr Wohltat, who is a close friend of Marshal Goering, sought an interview with me. He is my opposite number in Berlin. We discussed trade and world economics, and Herr Wohltat indicated to me that he and others highly placed in Germany thought the international situation between Britain and Germany had never been more dangerous. He greatly feared an explosion. What he had learned since his arrival in London in regard to the stiffening attitude of the British people omy strengthened that view. INTERNATIONAL ACTION.

“I told Herr Wohltat that Britain would never agree to cede overseas possessions, and would not be a party to any arrangement which would include the return of German or other mandated territories. Together we discussed the technical possibilities of overcoming the difficulties, I making it clear that I was speaking in my own capacity. “The loan or credits necessary for the scheme would not alone come from Britain. Other countries would be invited to take a share. I believe Herr Wohltat realised that Britain is not shrinking from a conflict and quite understood that Britain will resist force with force.”

“Herr Wohltat left to report the scheme to Marshal Goering.”

“QUITE UNOFFICIAL”

MR HUDSON EXPLAINS.

SUGGESTIONS NOT AUTHORISED BY GOVERNMENT.

By Teipgraph—Press Association —Copyright LONDON. July 24. Mr Hudson told the “Daily Telegraph” that he was the Minister who presented on July 22 a peace loan plan to Herr Wohltat, believing that it might lead to avoidance of a European war, but no figure was ever mentioned. He pointed out that he saw Herr Wohltat at the latter’s request, but emphasised that the discussions were quite unofficial.

“I made it clear that I was speaking purely in my personal capacity, and my suggestions were not authorised as a statement of Government policy or opinion.” he said. “I reported fully to Mr Chamberlain on the following day.” Mr Chamberlain is expected to make a statement on the question today. Herr Wohltat, before returning from his visit to London, hinted at the possibility of a revival of discussions on Anglo-German trade. Messages yesterday from Rugby and Berlin declared that there was no truth in rumours of a projected British loan to Germany in consideration of disarmament. Tn Paris reports to this effect were described as propaganda designed to undermine the solidarity of the peace front. “SHALL TELL ALL” MR HUDSON’S REPORTED STATEMENT. INTENTION IF HE IS ASKED TO RESIGN. (Received This Day, 10.50 a.m.) LONDON, July 24. The Prime Minister (Mr N. Chamberlain) has summonded a special meeting of Ministers this morning at which it is understood the Hudson affair will be discussed. Mr Hudson said: “If I resign I shall tell all before the House of Commons.” LOBBY REPORTS MR HUDSON UNLIKELY TO RESIGN. (Received This Day, 10.50 a.m.) LONDON. July 24. It is understood in the lobbies that there is no question'of Mr Hudson resigning.