Evening star., 1932-12-18
Lausanne Agreement Fixed
Priority of Obligations,
Is Paris Belief.
GERMANY Is IMPROVING
ITS FINANCIAL STATUS
Freed of Reparations, Nation II
Now Showing Tendency Toward
Recovery in Business.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, December 17.-Cables
and wireless dispatches to the Business
Week give the following survey of busi-
ness abroad for the week ending today:
Paris.-The heroic efforts of Premier
Herriot, as head of the French gov
eminent. in a parliamentary debate
which extended over two days, to per-
suade the Chamber of Deputies to
honor the signature of France by max
ing the s19,ooo,ooo payment due the
United States on December Is on var
debts. despite his own firm conviction
that France has been eXonerated from
these obligations. caused his fall. The
French agree unanimously that he
sacrificed himself to a cause. The on
erous position was required of him as
head Of the government But no
French cabinet ever fell with greater
glory.
Weakness in Franc.
France is firmly convinced that the
Lausanne agreement definitely estab-
fishes the priority of inter-European in
terests over American claims Paris
sees England as the only weak link, but
as Herriot pointed out in his final
speech: That which is admirable about
the British is that the more We dispute
with them. the closer We come to then
In the last fortnight our cordiality has
grown into a true fraternity"
At no time has France pleaded in
ability to pay. Nevertheless on the day
following the French decision, aside
from the firmness of the Bourse, the
franc developed new weakness. Even
German marks, traded only unofflcially,
rose above the theoretical gold export
point. While the Bank of France will
attempt to continue the sale of dollars
IN narrow market, it is expected that
the support will prove inadequate and
that at least Sl0.000000 gold will be
exported to New York before the end Of
the year
The fall Of the cabinet leaves France
in precarious position. Treasury
working funds were reduced to S8.OOo,-
ment by parliamentary consent to bor-
row. Further, commencement OF the
budget debate Is now suspended until
new government can be formed. And,
Importantly, the new prime minister is
unlikely to command either the esteem
or the control exerted by Herriot, both
OF which may lead to serious complica-
tionS in the future
Berlin.-Germany is under the in.
f1uence Of the Christmas spirit with
more of the traditional good will" in
the air than was though: possible a
snort time ago. Factors which buoyed
business sentiment this week include:
ID The Reichstag, after clash at
the opening week ago, negotiated the
absolutely necessary business. voted a
months recess as a sort of truce among
all parties. during which the new chan
celor. Won Schieicher, is to have
chance to consolidate recent economic
gains and put more plans into action.
CD Germany has been granted
equality" rights by the powers will
return to the disarm -~t conferences
on something of the p tA,rsanles foot
ing. Germany. free of x4.ations and
returned to frst-class 56Sk is likely
to work out of the prclCs isolated
stand which was forced on ". in the
peace treaty
t3D Business recovery-slow but per-
ceptible-is continuing
"a The country'S financial position is
improving.
L0ndon.-Important as the war debt
payment Is to British destiny cat least
as important as Britishers think 1t Isl,
London found time this week to read
about Queen Mary's trips to the West
End to do the royal Christmas shopping.
the senslbility of the British in being
patent with an impetuous Shah who
wants more money for his oil. and the
ilkellhood that Premier Bennett made
his trip from Canada to correct some
careless errors in the recent Ottawa
agreement dt seems some of the rates
on electrical equipment were written in
at levels which make it impossible for
certain Canadian firms to keep going at
profit
New Superhighway.
Rail and truck interests have given a
good deal of attention Of late to reports
OF the new superhighway being con-
Structed between Liverpool and Man
chester More than 25 miles of an old
narrow road is being replaced bv a s12.-
OO0. 900 highway which is to be 12o feet
wide, and will cross all other highways
with modern overhead crossing. some
OF Britain's heaviest industrial traffc
Is between these two great manufac-
turing cities