Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-20
Elements of Disturbance
In European Affairs
BY GERyILLE REACHR.

| PARIS, October ia certain num-
Der of complications have arisen In Eu-
rope during the past six months which
have rendered the general situation
rather disturbing.
| Some Of these are due to Labor COM
| ing into power In England. The agree
ment between Arthur Henderson ana
| M. Doygalevsky, the Soviet representa-
tive, for resumption of diplomatic re-
| lationS between England and the Soviet
scarcely enhances the prestige OF the
London government abroad. That pres
! tige was already severely compromised
| by events in Egypt, Palestine and Irak.
to say nothing of internal difnculties OF
an economic and financial nature.
Prime Minister Ramsay Macdonald's
triumph in America cannot alons
compensate for the setbacks British
policy has met In the Near East, for
naval limitation is only one piece on
the international chesshoard.
The Young plan is another impor-
tant piece and 1t Is dangerously
threatened at the moment In Germany.
Nothing good can possibly come from
a plebiscite II the Nationalist succeed
in forcing one.
If the Germans are so ill-advised as
to reject the Young plan at the behest
| OF lingo agitators, the reaction in
| France would be immediate. The
Rhineland areas now being evacuated
would be instantly reoccupied. 1t Is
difilcult to believe that such decision
will be adopted, but, If the Nationalist
| roll up q heavy vote for rejection, it
will indicate how fragile Is the Struc-
| ture OF Ffanco-0erman reconciliation.
The question will be settled before
The Hague conference reassembles and
even before the diplomatic exchanges
determine the mode Of application OF
the plan, of which the most important
element. namely, the International Pay
ments Bank, Is already under q heavy
attack.
The idea Is to transfer the problem of
separations and interallied debts from
the political field to the commercial
and financial field: but does the crea-
ton of an international banking die
tatorShip among issue banks, which
cannot agree among themselves, solve
the problem? The Young plan allows
no check whatever on til. banks alb
solute and irresponsible autonomy. The
widest powers are granted to the gov
errors OF issue banks forming the board
Of directors. They are responsible only
to themselves and will even appoint exc
perts to audit their own accounts.
What Is now happening in Germany
unfortunately shows clearly enough
that reparations have not lost their
political aspect entirely. Moreover,
other questions like the Hungarian
minorities and Oriental separations re-
main strictly political and far from
negligible.
The European Bourses this week re-
hected these disturbed conditions. Lon.
don, Paris and Berlin registered price
declines and revealed profound hesita-
ton among investors.
Furthermore, Europe's general eco.
nornic situation is far from satisfactory.
The textile industry seems TO be enter
ing crisis and the motor trade seems
momentarily to have reached the sat-
uration point.
Painting the outlook too black would
be mistake. for there are certain en-
couragtng elements, such as excellent
crops this year, but q greater error
would be not to realize that econom-
ically a. well rs politically, Europe's
situation calls for careful watching.
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