Evening star., 1932-01-03
Europe Anxious as to
Results of Meetings
BY A. G. GARDINER.

LONDON, January 1.-The most
critical New Year since the World War
has dawned over Europe breathless
with anxiety.
The graveSt fact now apparent to all
the world is that Germany is on the
brink of an economic collapse. The
latest figure of the unemployed ap-
proaches $500 900, and 1t Is antici-
pated that this will be more than
100000 before the Winter is over. OF
this total, 4,500 900 are receiving in
surance or welfare dement's of some
sort and nearly 100000 are entirely
unprovided for.
The impoverishment of the people
equals anything experienced in the
darkest days of the war and moving
descriptions are given by observers of
the desperate extremities to which
people are being driven to keep body
and soul together. A certain wild levity
still marks the night life of Berlin,
though the disappearance of foreign
visitors has LED to the closing of some
of the most famous cafes.
* Il x x
1t is in the country where distress is
most naked. In the Ruhr, hundreds of
the poor and unemployed are seen with
soap boxes on wheels raking in the
mire round the mountains of coal for
odd Jumps which have Iallen by the
way, and in the countryside scratching
the harvested fields for any potatoes
that might have been left behind.
With the issuance of the Basel ex-
perts' report, the hopelessness of an
ttcipating the resumption of Germany's
payments finally has been demonstrated
and the problem facing the coming dip
lomatic conference at Lausanne to that
extent Is clear. The British position in
regard to solution of the problem has
been indicated in the exchange of notes
with Paris. The question Is not what
can be extracted from Germany, but
what measures are necessary to prevent
default and an economic and political
CRASH, which would shake Europe to its
foundations.
The Reichsbank cover is nearly ex-
hausted and its financial fabric rests
on vast volume of short-term foreign
credits frozen by the "standStill" agree
ment till next month. Unless the agree
ment is renewed voluntarily, open de-
fault is inevitable.
In the British view, the restoration of
German credit is vital to the recovery
OF Europe and the world. Mere exten-
sion of the moratorium for two, three or
even five years is insufficient to achieve
this end and drastic sweep of war
deotS and reparations is necessary to
restore the credit of the country and
the confidence of foreign leaders in its
ability to honor future loans.
r X
AS the London Times remarks, "a
mere moratorium which left Germar1y's
ultimate liabilities untouched would
simply prolong the agony and lead 10 a
further and still more dangerous crisis.
That is why the British government In
It's recent note pressed strongly for q
permanent solution of this question,
which has vexed Europe and the world
Tor more than a decade"
What in the face of this desperate
situation will be the action of the con-
ference? France has been difficult, but
the debates in the Ameri-
can Congress have modified her atti-
tude and the Paris press pretty gener-
ally insists that in view of the position
CT the United States in regard to the
debt problem, it is more than ever
necessary that France and Britain
should pursue an agreed policy at the
But if SO, France must
accept the British view that reparations
be cut with war debts.
* * x
How far Franco British rapproche-
ment is possible is only matter of
speculation. However, the conversations
between the French and British treas
uries are proceeding and it Is hoped
that measure of common policy will
be reached for submission to the Lau-
same Conference. Rumor suggests the
possibility of bargain covering repara-
tions and disarmaments, but this at the
present Is pure speculation. 1t Is ex-
pected that both Premiers Laval and
will attend the conference,
at all events for the critical discussions.
The decision of Washington in regard
to the conference Is awaited with in
terest.
(Copyrisht, 1922