Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-19
London Feels Easier
Over German Crisis
BY A. G. GARDINER.


thrilling days of the general strike has
this country experienced such a period
of nervous tension as during the present
week. Hope ard fear have chased each
other across the stage from day to day,
almost hour to hour, under the difficult
ties raised by France to cooperation in
the Hoover moratorium plan and the
consequent repercussions in Germany.
The effect of the introduction Of
French demands for political guarantees
as a condition for cooperation in rem
dering economic aid was disastrous and,
with the 'Danat Bank catastrophe and
the closing of all German banks at the
b: ginning of the week, the gravest fears
prevailed in this city in view OF the
enormous German commitment in Lon
don acceptance houses.
This observer has learned from an
authoritative French source that France
had not intended to make political de-
mands as a formal requirement, but put
forward the suggestion to the British
tentatively on the ground that such Q
gesture by Germany would influence
French public opinion and make the
task of French statesmen easier. WHAT
ever the intention was, the effect on the
situation up to Wednesday night seeIne4
to be fatal. But Foreign Minister Hen~
derson's visit to Paris conceded with q
change in the atmosphere, and the an
nouncement Thursday night that the
proposed visit of Premier Macdonald
and Foreign Minister Henderson to Ber.
lin this week end had been postponed
in favor of the seven-power conference
in London next week created . more
hopeful view of the situation.
1t is generally recognized that the
cordial cooperation of Henderson and
Secretary Stimson in Paris constitutes
a powerful safeguard against COM
plete breakdown, and the fear of being
morally isolated is beginning to exef-
else an influence on the French attitude.
Moreover, the drastic steps taken by
the German government and the
Reichsbank to check the fight of the
mark and stabilize the internal situa-
ton has made favorable impression in
both London and Paris. The disQuiet-
ing feature of the outlook is the signif-
cant attack on the London conference
by the Paris newspaper LIE Temps.
which is VIGOROUSLY the vehicle of the
Quai DOrsay.
The first reactions here to the pro-
posed international $500. 900. 600 loan to
Germany, unaccompanied by political
guarantees, were favorable, but hesita-
ton is expressed in many quarters at
the French suggestion that instead Of
direct loan the German loan should
be made through the Bank of England.
The ground for the suggestion is that
French participation in q direct loan in
wolves the summoning of the French
Chamber OF Deputies, but feeling here
Is adverse to this country assuming any
separate responsibilities in regard to
the transaction
The results of Bruening's and Curtius'
visit to Paris this wesk end are awaited
mere with some anxiety as foreshadoWing
the success or failure of the London
conference. Satisfaction was expressed
that all the countries concerned, in
Guiding Japan, will be represented at the
conference, and especially at the fact of
the full participation of the United
States, for whom Stimson will be pres
ent not as an official observer, but as an
active member. The fact is commented
upon in the press as significant of TIA
change which has taken place in regard
to the American attitude toward Euro
pean relations and as having an i'm
portant bearing on the issue of the
event.
At the moment the omens are re-
gsrded as favorable. This weeks shock
has given Germany evidence of the
her foreign credit, and on the ether
hand has enabled France to appreciate
the danger of being responsible for
sabotaging the Hoover scheme and
bringing about collapse Of the whole
structure OF European finance.
But no one supposes the danger point
has yet been passed. The golden op-
portunity which the Hoover gesture
offered has been largely sacrificed by
prolonged haggling In Paris, and press
comment here makes full recognition of
the risks the President has run of In
viting loss of prestige, especially in view
OF the gravity of his own internal sit
uation.