Geneva and Lausanne

Radio Record, Volume V, Issue 52, 8 July 1932, Page 3

Geneva and Lausanne

Two: Critical Conferences

by

Dr.

GUY H.

SCHOLEFIELD

A 2YA Talk

E may expect any time now to hear of some definite outcome from the two conferences of the Powers which are being held in Switzerland. One of them, the Disartmament Conference, has dragged on and off since the beginning of the year. It is being held at Gkneva. The other, the Reparations Conference, was postponed from the beginning of the year, and was opened at Lausanne on Thursday last. Lausanne and Geneva are two very beautiful towns on the shores of Lake Geneva, about 30 or 40 miles apart. Geneva, which is the capital of Switzerland, has a population of 140,000 (about the same as Wellington). Lausanne is only about half the size. Switzerland has always been regarded as a sort of neutral and international country. At the peace of 1815 its neutrality and inviolability

were guaranteed by Britain, Austria, Prussia, Russia and Portugal, and the Swiss have managed with an army of only 40,000 men to preserve their neutrality ever since. It is in econseauence the most appropriate that

international gatherings should be held in Switzerland. The two conferences which are now being held on Swiss soil are international in the larger sense. Even America is represented at the Disarmament. Conference by observers. She is not represented at all at Lausanne, because America has no direct

interest in reparations. She has never received or wanted to receive any payments for herself on account of her war expenditure, HE Conference at Lausanne has been called as a last resource to try to get some alleviation of the heavy burden of War debts. What is called by Mr. Ramsay MacDonald "the fingiicial inheritance of the War," and by Mussolini "the tragic bookkeeping of War." I have outlined more than once the extent of those burdens. All of the nations among them are paying interest on thousands

of millions of pounds lost in war destruction. No corresponding assets at all. Germany alone has to pay £75,000,000 a year to foreign nations in expiation of her part in the struggle. In the economic depression consequent on the War this burden became so grave that a year ago Mr. Hoover (on behalf of America as the chief creditor) offered a whole year’s respite from interest and principal payments, in the hope that conditions would improve. On the whole, they have not improved. Even Britain, with all her wealth, has since gone through a crisis of the gravest possible character; while America herself is in a.depression such as she has never known before. As for Germany, the "Economist" said recently: "She has accepted severe measures of self-discipline with comparatively little political violence and without a social upheaval, which is a strong testimony to the sanity of the German people; but: it-would

be taking a very heavy risk to call upon them to face another winter without hope that things will mend." ; Dr. Bruening, the late German Chancellor, said plainly that Germany could not resume payments, | and the Basle Committee of experts has agreed that she is justified in postponing the conditional payments. Hitherto the tenacity of France has prevented any revision of the reparations. Now even France has begun to realise that she cannot any longer depend upon the support of the other Powers. in maintaining the reparations. A few. weeks ago a new Government, led by M. Heriot, came into office, and it is generally understood to be inclined toward conciliatiori.

ITH France there are two main . obstacles to the abandonment of her claims against Germany. In the first place, if the reparations cease she will have to provide out of her own funds for the balance of restoration in the

devastated area. Secondly, she will nave to pay out of her own pocket interest and principal of the War debts owing to Britain and America. Hitherto she has relied upon German payments to meet these demands. It is, therefore, very difficult for France to consent to the abandonment of reparations without an assurance that Britain and America will forgo what she owes them.

It is rather sad to see how unerringly one after another the financial responsibilities of the War come home to roost in the City of ‘London. England has always been first and foremost in her sacrifices for the common good ; and once more, in spite of her own financial difficulties, she has declared het willingness to make a new sacrifice. At the opening of the Lausanne Conference Mr. Ramsay MacDonald. said the world was looking not only in need but with impatience to the results of the Conference. It was the essence of their task that they should act speedily, for an agreement

reached quickly would have an eirect 1UU times more beneficial than one painfully and imperfectly secured at the last moment of exhaustion. What he meant by the "last moment" was that the Hoover year of respite is almost expired. When the Conference met-on June 16-there was just a month to go before the Hoover moratorium would end. The payments would be resumed normally on July 15; and it is common knowledge that more than one of the debtors is quite unable to make payment. To meet this danger France, Britain, Italy, Belgium and Japan met together (under the presidency of Mr. MacDonald) and agreed that no payments should be demanded while the Conference was in progress. America made no declaration. You will remember that Congress accepted the Hoover scheme some months ago with grave "reservation. It distinctly said there should (Continued on page 21.)

All eyes are turned to Geneva and Lausanne, where conferences have been called as a last resource to try to find some solution to the grave crisis that faces the world. At Lausanne War debts are being discussed. The era of War debts and reparations is over; Germany cannot resume payments when the Hoover moratorium expires, and to force other nations will be to accentuate the problems now being faced.

Geneva and Lausanne f

(Gontinued from page 3.) be no extension of the moratorium and no cancellation of debts. All that Mr. MacDonald could say about America was that when the present phase is over America will join in devising a policy for the maintenance of civilisation which will be based on the prosperity of all nations. In addition to the agreement of these five Powers not to press for payments, half a dozen of Germany’s neighbours in Europe have come together with an ffer to lower their tariffs for the benet of international trade. These are Norway, Sweden, Denmark, Holland, Belgium, and Luxembourg. Holland, by the way, has suffered very severely in recent months. The collapse of exchange has pressed so hard upon Dutch shipowners that the Dutch flag is said to have disappeared from the freight market. (Only one illustration of the

far-reaching effects of the economic crisis. ) Another happy omen in the present situation is the complete agreement between Britain and Italy, the two strongest Powers in the matter outside of those mainly interested, Signor Mussolini a day or two ago paid a high tribute to Mr. MacDonald’s statesmanship and the disinterestedness of Great Britain. "England and Italy," he said, "are the only two barriers today against the Bolshevisation of Burope, because they are both united and both disciplined, The era of war debts and reparations is over and belongs to the buried past. If Germany says ‘No,’ Italy will say ‘No.’" In face of that declaration it is not surprising to find that the Press of France considers reparations are dead and buried. Mr. Neville Chamberlain, the British. Chancellor of the

Bxchequer, said at opening :-~ "Tt is the British opinion that vast inter-governmental obligations cannot be exacted without disastrous consequences to the whole economic fabric of civilisation. Britain is so convinced of this that we would be prepared to take our share ina general wiping of the slate, provided all the other Gov-' ernments concerned do the same. We will not hesitate to make further sacrifices of our legal claims if by so doing we can aid the common cause. In that spirit only can the problem before us be successfully solved, and the first step taken toward a return to normal conditions. The real problem is not s0 much the capacity of one country or another to make payments, but whether the making of such payments, and even the uncertainty about the future created by the liability to make them constitutes a standing menace to the maintenance of international trade." Thus, opinion in Europe appears to have veered slowly round to the view that reparations must be reviewed. But Hurope cannot act without the co-opera-tion of the common creditor, America, We know what America did a year ago. Public opinion to-day hopes that she will go a long step farther toward a revision of her foreign debts. That she means well is obvious from what she has done, but we must recognise America’s difficulties. Most people assume that it would be a simple thing to write off these intergovernment debts and so pave the way back to prosperity. But is it so simple? To begin with, America is wrestling today with an unprecedented financial crisis. "The largest budget deficiency the world has ever known in time of peace." It is not a very suitable moment therefore to ask her to forgo about £100,000,000 a year in foreign interest. And there is another aspect of this proposal. If America did write off these foreign debts she will still be +iable to her own citizens for the repayment of the money, and for the yearly interest on it, What would we say about a government that failed to pay interest on its stocks to citizens who had lent the money? ‘That is obstacle No. 1 for America to-day. Obstacle No. 2 is equally difficult, though of quite a different character. You know that it has been the traditional policy of the United States co hold severely aloof from the affairs of Europe. Don’t forget why thisis. Passionately attached to the interests cf peace, she has insisted on keep'ng out of all alliances and entanglements, It. was the same passion for peace that brought America into the war (under President Wilson). It also brought

President Wilson to Europe to try to establish a permanent peace,. through the League of Nations. Since then America has intervened in Burope with the prime object of helping Germany to her feet, and persuading the nations to disarm. She has never asked for reparations. But she has again and again asked for a reduction of armies and navies. : The one nation that has gone with her hand in hand is Great Britain. No country has made more sacrifices of security than has Great Britain. America can have no doubts as to the sincerity of the British people in this matter. What America asks now, and has asked ‘again and again, is that other nations should give similar pledges of their peaceful intentions. There is no need to mention names. We know which

nations have spent most on arms in re--eent years. And it is clear that America and Britain together, as the chief éreditors of the world in arms, have & right to say that before any more concessions and gifts are made the expenditure on weapons of war must cease. America is at Geneva as an observer to see what ig done about disarmament. Until that is decided she has only a minor interest in the reparations conference at Lausanne. . .