Evening star., 1932-01-07
WILL STRESS THREE POINTS.
British Will Press Reparations, War
Debts and Gold Issues.
BY NELSON FARSON.

LONDON, England, January T.
Reparations, war debts and gold will
be the target of the progressive British
attack from the Lausanne Conference
on. If the United States wishes to
tack on disarmament, so much the
better, because Great Britain, to bal
ance her budget, will probably have
to make drastic economies in her serv-
ice anyway.
The United States never accepted
the twinship of reparations and war
debts. Neither has the United States
accepted the Balfour declaration, which
also emphasized such indivisibility
when it said that Great Britain would
take no more from her allies than
Great Britain paid to the United
States, but in justice it could not be
asked to pay the United States more.
Runs on Small Reserve.
Great Britain could not continue to
pay the United States her war debt
II Germany and consequently the Allies
defaulted. The simple reason is that
out OF fl20,000,000 in gold which
remains IN the much attacked British
treasury today, 100000 are ear
marked to pay the Franco-American
credits this company obtained in a
futile effort to remain on the gold
standard, so that Great Britain is
really running on gold reserve of
f5,000,000.
And if Great Britain tried to pay
her debt to America by buying ex-
change or accumulating funds in New
York, 1t would mean the raising of
some f55,000,000 yearly, thereby turn
ing the exchanges further against
Great Britain; an increase in the sum
10 De paid and would probably wreck
the pound.
After IL years Great Britain is not
ohly calling but preparing and de-
ltanulng showdown on realities, one
VI Wnlch-the gold standard-was &C
Gualiy hrst officially recognized by the
United states, when the Dawes plan
instituted provision for the alienation
or increase Of Germany's money liabil-
lty from time to time to correspond
WIN the gold price level. Owing to the
lal OF wholesale prices twice as much
goods and human effort is reo1lired IN
1920. ''0@S do III
That is a reality which the Young
plan failed to foresee.
2s Countries on Gold.
Another reality is the action of +bo
high American and French tariffs e Sve
phoning gold out of Europe until France
and America, between them, today pos
sess three quarters of the worlds poId
reserve. Today 28 countries, headed bv
Great Britain, former world financial
center, are off the gold standard. They
are crystallizing into a sterling bloc 3
whose target ultimately must be France
and the United States.
The French claim that British
propaganda is trying to undermine tlH
faith of America and France in the
gold dollar and the franc. Here again
the British say that it is realities
country after country must inevitably
desert the gold standard in order to
lower the level Of exchange prices to
compete with the bulk Of the worlds
trade.
1t can be taken for granted therefore
that, while politically the United States
might refuse to acknowledge a connec-
ton between reparations and war debts
and politically the French might prevent
the interjection of the gold question
into the Lausanne reparations confer
ence, Great Britain, through one avenue
or another, Is demanding showdown
on the reality of the unity of all three.
Macdonald Eager to Attend.
Prime Minister Ramsay Macdonald
would like to attend the Lausanne
Preparations Conference, according to
a statement by Sir John Simon. Brit
ish foreign minister, at foreign press
luncheon yesterday. However, if the
conference wants to have the prime
minister 1t must begin during the week
of January 10, which is q hint to
the French, who are still hanging back
over the date.
In any case, Sir John stated that
he himself and Neville Chamberlain,
chancellor of the exchequer, would
attend.
The London angle on the conference
is that 1t is primarily an affair Of the
British and French, between whom an
agreement is confldentially expected to
be reached.
Montagu Norman, governor of the
Bank of England, is always contending
that nothing short of absolute cancel
lation could save Germany and the
European situation, but the bankers
influence Is somewhat at a discount in
England just now and the foreign office
opinion La looked upon TO prevail.
tcopyright. 1884,