Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-29
FIGHT CONFRONTS
NEW DEBTS FARLEY
Failure May Bring French
InSistence to Keep Troops
on Rhine.
ny Radio to The Star.

ny Radio to The Star.
PARIS, December 2S.-The year now
ending has seen a complete conSolida-
ton Of the French economic and finan-
cisl situation, despite difficulties mostly
concerning the stock exchanges, which
affected all world markets. And it is
not amiss to stress the fact that this
final consolidation comedies with
French ratification of external political
debts.
with her 100000 inhabitants.
France has been able to afford the dou-
bic luxury of settling a budget exceed
ing S2,000,000,000 and importing 81
300,o00,000 worth Of merchandise, while
exports were only $4,000 900 900.
France thus took her place among
the worlds greatest purchasers without
hamper1ng her credit, for her balance
of accounts remained so positive that
since the francs sterilization she has
had to absorb $500,000000 of almost
unproductive gold while maintaining
the lowest discount rate in the world.
On the other hand, France has not
yet succeeded in consolidating the
reparationS debt against Germany or
Transforming it into a sum equivalent
to her own debt to her former allies and
associates.
Work Little Advanced.
Who could have believed on February
II last, when the Young committee met
for the first time by virtue of decision
taken at Geneva on September 16 1928.
that at the end of December. 1929, the
work OF this committee would be so
little advanced? Yet this is almost
what happened with the Dawes plan.
with the difference that all had been
settled with the Germans in the parley
In August. 1924. and a general accord
among the creditors had been achieved
by January IA, 1925.
This time an accord among the credi-
tors has been Sketched out in December
and. as in the case Of the Dawes plan,
the United States has treated separately
with Germany, but an accord with the
Germans has by no means been reached
as yet. Doubtless this situation will be
revealed at the second Hague Confer
ence In the coming week.
DR.. Schaoht, president of the Reichs-
bank, has no more concealed the at
titude that he intends to adopt at the
second Hague conference than did
Philip .Snowden, the British chancellor
OF the exchequer. at the first confer
ence. In his memorandum to the Ger
man government, the president Of the
Reichsbank reopened not only the ques-.
ton OF the first Hague protocol, but
also such subsidiary questions as that
concerning the Sarre region.
If the German delegation really
adopts this attitude at the Hague, it
will be sufficient to wreck the nego-
tiations or, at least, to adjourn them.
BethIen to Defend Cause.
Count Bethlen. the Hungarian pre-
Enier and himself one of the most i'm
foFR siaV
garian landowners whose holdings we're
condscated under the Treaty of Tria-
non-is coming personally before The
Hague conference to defend his own
cause. which has solid basis in law,
II not in equity. He will not fail to
inject into his defense all the vigor of
q man defending his own purse. Prob
ably; with German support: he will line
up the Little Entente and Italy against
the PREPARATIONS settlement envisaged
last August.
Recalling that neither Pirelli Of italy
nor Chancellor Snowden nor Premier
Tardieu Of France is reDuted to be
easy to handle or sway, 1t IS evident
that all factors will be united for Bit
ter discussions, despite Foreign Minis
ter Brands pacifving eloquence and
the conciliatory spirit Of the Belgians
and the Japanese.
Calculated 70 Change Atmosphere.
This new conference at The Hague |
b calculated to modify the interna- |
tional atmosphere on the eve Of the
London naval parley. French states
men, particularly, we're faced with the
greatest difficulties this week in par
lament regarding French security
which Is considered bv a portion of
the majority to be insufficiently assured
on both land and sea.
If the second Hague conference fails
to bring a result as clear cut and as
satisfactory as the first, French opinion
probably will insist on the one hand
on the continuation of the military
occupation Of the Rhineland. and on
the other hand greater provisions for
defensive naval forces both for France
and her Colonial empire.
Once again the voice Of GERMANY
would suffice for the repression of all
the organizing forces for peace The
meeting of the League of Nations Coun-
CT on January IS will permit the world
10 Judge the extent Of the repression of
such forces. which was caused in some
part by the death of Foreign Minister
Gustav Stresemann
(CopyFigf1t, 1927