Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-12-06
DRAMA At BASLE
HAS DARK ASPECT
Political land Economic Groups
of Different Aims to Dis
Cuss Germany.
CONTINUED .Fron First PageN

representing Europe staged last Tues
day a little struggle behind the scenes
which must have amused japanese and
Chinese alike. The fight occurred our
ing discussions for the formation Of The
famous ManChurian investigating com
mission which is likely to have about
as much power and authority rs an
American prohibition agent in Windsor
or NCgales Yet the members Of the
Council found a good excuse to show
the irreducible antagOniSm which eX-
lists among the European nations by tie
fact the French delegates opposed the
appointment Of an italian or German
because both those nations were in
favor of treaty reyisions.
Ambassador Dawes, representing the
United States. kept out Of trouble as
much as it was possible, thus saving the
prestige OF the white race and at the
same time endeavcring to keep the
European powers as much as possible
together. It seems that his role was
more Of safety valve for the Euro
pe2ns that as an aTbiter between the
japanese and Chinese.
The truth is there was not much to
arbitrate; the Japanese were determined
to take Manchuria and the rest of the
world sat down to find a solution which
should make that action palatable and
plausible In that, the Council Of the
League had the fun support of the
japanese foreign minister, Baron Shide-
hara, and his representative at the
Council Of the League.
Efforts to Avoid Row.
Our efforts to prevent a serious row
between the Europeans based upon a
realization Of the Importance Of the
coming reparation conversations and
we wanted to keep the interested ma
tions. which happened to be at the
same table during the japanese
discussions, in a good mood.
There is no question in the minds Of
our diplomats and financial experts
that the coming discussions. first at
Basic between financial experts, then
either at Geneva or in Paris between
government leaders. are going to be Of
momentous Importance. Because the
world is at present in an extremely
precarious situation, both politically
and economically, this coming con-
ference is considered more important
than the ones which resulted in the
Dawes plan or brought into existency
the Young plan.
The groups of powers representing
totally different interests are more
clearly outlined than ever before. The
reason for this is that France has
reached a position which renders her
completely independent of the rest OF
the world. This, at least. is the
opinion Of the majority of the French
people There are some far-seeing
prominent FTenchmen, especially in the
banking circles, who realize this power
IS only apparent and that their country
will suffer the consequences Of finan-
Cial breakdown in Europe as much as
any other continental country.
Some Of these men will be at Basic
when the financial negotiations to de-
eide upon Germany's capacity to pay
begin. But even these men cannot act
exclusively on the dictation of theiI
common sense they must take into
consideration the desire of their gov
ysament and must bear in mind that
DE decisions of the committee of ex-
pts must be ratified by the various
Interested parliaments.
Consequently the Basic Conference
will be divided in two groups. one con-
tanning the representatives Of France
Belgium and Poland and the other with
American, British, Itanian, Swedish
Swiss and japanese representatives.
All EDOHOIllSLS.
It should be stated from the very be-
ginning that all these men are not only
expert bankers, but probably the most
prominent economists the world has to-
day. Consequently their discussions are
going to be dispassionate and objective
Students Of international eConoricS
realize unless something constructive is
done to relieve the economic pressure in
Germany and scale down her payments
that country will go bankrupt anc
NOBODY will collect anything-neithel
reparations nor debts
Not that Germany is really down anc
out The opinion of our bankers anc
well informed diplomats is that Ger.
many is in a tight corner lust now
but she has still sufficient resources tt
enable her to resume a normal eConomi,
lie II she had sufficient moral strength
TO pull herself together But it appears
that the hardshlps she had undergon,
IN the last SIX or seven months have
undermined her morale. as was the case
toward the end of the war. Her people
are hard hit and seem to be determined
TO prefer the inCalculable consequence,
OF bankruptcy to a continuation of 2
situation which they describe as a state
OF permanent slavery"
Like many other people the German,
ask themselves whether the French are
after the money from reparations OF
whether they want to bring Germany
70 her knees ana are using the repara-
lions question for political purposes
70 achieve the slow but sure destrlc-
ton OF Germany by economic means
he repeated attempts Of Premier La.
20! TO force Germany to give France
political guarantees in exchange 70!
economic and financial assistance tenc
10 confirm this theory which is popular
in Germany today.
consequently, We may expect thu
French, Belgian and Jugo-slav dele
gates al Basic TO be Influenced bv tn,
political angle Of the rcparations cues
Zion in their dealings with the German,
and the other delegates. There is M
aoubt men like Mr. Moreau, the gov
ernor OF the Bsnque de France, woulc
be inclined to look upon the entir
Atuatlon purely from the intcrnationa
angle. but he knows the report tn
experts are going to draft must hav
the approval OF the French ParLamen
~ order TO become effective.
Influence Is Expected.
Sor this reason these delegates ar
expected to be Influenced in their deal
ing by political considerations Will
the others viii besr in mind mainl
what will happen to the world if Ger
many is forced into Bankruptcy
The report OF the experts need nc
be unanimCus. II would Of course, b
a tremendous advantage if all The eX
psrts came to the same conclusion an
presented an united front before tn
committee OF political men But eve
the most optimistic Observers cannc
hope things to run so smoothly. It
more probable the so-Called "pOliticf
group viii differ from their colleague
in their conclusions.
II appears certain Germany is in
position TO pay something when til
Hoover moratorium ends on June 81
The Germans and most of the banker
would like 10 see the moratorium eS
tended for another three or four year
in order 10 enable Germany TO pay he
private debts. The French bankers fer