Evening star., 1932-01-17
British Opinion Favors
Canceling Reparations
BY A. G. GARDINER.

LONDON, January 16.-Will repara-
tions be inferred at Lausanne? This Is
the question which overshadows Euro
pean politics at present.
Opinion here is gathering an over
whelming volume in favor of complete
cancellation, and the other doubt Is
whether the British government will
take as drastic a stand as public feel
ing warrants. Premier Macdonald has
not yet announced the policy he pro-
posed to adopt, but he is being urged
in the press of all parties and by both
business and financial authorities to
take an unequivocal line IN favor OF
cancellation of both reparattons and
war debts.
Finance Minister F1andin's protest
against Chancellor Breunings declara-
ton of Germany's inability to pay and
his insistence on the sacred rights OF
France generally are dismissed as
belated echo of tune Of which the
public has become impatient. Growing
sympathy Is manifested in all quarters
with the gallant struggle Of Bruenlng
to preserve Germany from internal dis
ruption, and 1t is realized that the
issue of events at Lausanne Involves
the fate of Central Europe.
The most important event bearing in
favor of a clean slate is that an extra
ordinary impetus has been given to the
cancellation current and to the idea OF
remuneration as the only solution OF
Europe's desperate economic position,
which may now be taken as the &C
cepted principle in financial circles.
The only difference of opinion among
economists Is whether cancellation
should be absolute or whether, for the
sake of agreement with France, some
modest figure within Germanys ulti-
mate capacity to pay should be fixed
as the final settlement of the problem.
Sir Walter Layton, the British repre-
sentative at Basel, takes the latter
view and John Maynard Keynes the
former
The possibility of the conference be-
ing further postponed must not be ex-
cluded, in view of the imminence Of
the French and Prussian elections, es-
pecially the former. 1t Is thought that
France might be more amenable to
reasonable proposals after the elec-
tionS.
Informed opinion here is convinced
that in spite of her unyielding official
attitude, France is more moderate than
the counsels prevailing in banking and
business circles and that the campaign
of Depreche de Toulouse in favor OF
cancellation Is more representative OF
the mind of provincial France than the
intransigent attitude Of the Paris press:
1t is argued that If by delay, say OF
three months, a common agreement can
be reached, it Is better to postpone the
conference. On the other hand,
l. b. he cStl ivvH
Is preferable to have the crash without
delay. Moreover, should the Prussian
elections result in triumph for Adolph
Hitler and a weakening OF Bruenings
position this fact would add serious
complications and tend to stifen French
resistance.
The probabilities are that the con-
ference will meet and attempt to md
a basis for agreement, fail and adjourn
until the elections have shown the d1rec-
ton in which the popular wind Is blow
ing.
One of the chief difficulties is the
absence of dominating leadership In the
emergency that threatens civilization.
The United States has washed its hands
of the problem, and Congress, as the
Week End Review remarks, has ef-
16CLlVSly ITuSSSu up TAcSAdChe 4@oo o'SA'
France is waiting for marching orders
from the election. Italy is bold and
realistic, but inadequate for the role OF
leadership. In the circumstances, all
sections of the press here are agreed
in urging Macdonald himself to go to
Lausanne, cease fumbling toward
compromise with the French on the
basis of a new moratorium and declare
boldly for clean slate OF drastic seal
ing down of reparations and a definite
and final settlement this year. Such
declaration would set the issue clearly
before Europe and have a profound eff
feet upon both France and Germany
Even If settlement were not reached
at once, the declaration would mobilize
opinion toward a rational decision and
incidentally give lead to the Disarna-
ment Conference, which is doomed to
failure If the Lausanne Conference riyes
no clear inspiration to Europe.
(copyright, iss2.)