Evening star., 1932-08-07
BY RICHARD Won KUHLMANN,
Former Foreign Minister OF Germany.

fOfmef fOrelBn Oh GcIHdHys
THERE is little doubt, in well in
formed European political cir
cles today, that informal dis
cusSions looking to an entente
between Holland and England
have been taking place among the lead
ing men of the two countries. Up tc
the present these negotiations have
been purely tentative, and neither gov
ernment has taken an official part IN
them. But they have disclosed that on
both sides there is sentiment in favor
of such an understanding.
On the English side, 1t has developed
that even the idea of a gentleman
guaranty of Hollands colonial posses
sions would not be considered outside
the realm of possibility. However, the
British have left no doubt that In re-
turn they would insist on Holland
abandoning the gold standard and
Joining the large number of countries
that have followed England's lead in
their monetary policy.
With England, it was not case OF
<<ee choice; circumstances forced her
of the gold standard. This would not
be true of Holland. AS far as one can
see. she is in a position to maintain her
gold standard, both at home and In
her colonies. If she did abandon it,
I6lS WOUlC De d NOlullOdlg dSH oAAA' III
view of her comparatively small debt
abroad and her we'll balanced trade.
she probably would be able to keep any
fluctuations of the guilder within rea-
sonable bounds.
For Hollands colonies, however, the
Temptation to go off the gold standard
would be much greater than for the
motherland. because fall in the value
of the guilder, which Is also the cur
rency of the colonies, would ease the
strain of japanese competition some
what and lower the cost OF production
of colonial goods considerably: Expert:
ence shows that in all countries, and
particularly in half-developed states,
the rise in the cost of living follows
the depreciation of the currency eX-
tremely slowly, so that for consider
able interval the cost OF production
falls off and exports consequently in
crease. Commercially. the Dutch CO.
lonial empire is mainly producer OF
raw materials on large scale. 1t nat
urally has suffered severely, along with
all other colonies. from the terrible fan
in commodity prices.
Small Independent State.
Holland is one of the smallest indie
pendent states in Europe, with about
100000 inhabitants settled on 32,7OO
square kilometers. Few people seeing
this charming old country remember
that Holland at the same time is mis-
treSs of colonial empire roughly the
size of Europe, inhabited by popula-
ton of 100000 In the East Indies
the Dutch possessions include the i'm
portant islands strung from the Malay
peninsula to the Australian continent
The most important of these are Su-
1r1atra, Java, BoIneo, Ce1ebes. the small
Sunda island, the Molucca Islands
and part Of New Guinea. A glance at
the map shows the enormous strategic
Importance of this colonial empire
What remains of Dutch possessions IN
the West Indies Is not very valuable SO
far as area or population goes, but the
strategic situation Of these islands must
not be underrated.
teenth century, it seemed doubtful
whether the colonial world would be
Dutch or British The hardy Dutch
sailors went forward with indomitable
spirit: they settled the Cape Colony
thev settled India and they established
settlements in North and Middle Amer
lea. The Boer War was just belated
offspring of the struggle which decided
that England. not Holland, was to be
the great colonial empire on which the
sun never set.
The Dutch mainland, together with
Belgium, forms those low lands which
have always played a paramount role
in the history of England. Being SO
close to the English coast, with their
excellent ports, they would, OF course,
furnish a first-class base for attack on
the British Isles. Therefore, very early
in history it became one of the funda-
mental rules of British policy that no
first-rate power should be allowed TO
establish herself in the low lands op-
posite the English coast. With the pub
lication of Lord M0rley's diary there
remains no doubt that it was mainly
the German invasion Of Belgium dur
ing the World War which flnally
determined the British to enter the
colossal struggle.
Freedom Admirably Kept.
During the World War Holland ad-
mirabIy kept her freedom, her tnde-
nendence and her neutrality. 1t was
no small achievement to do this, being
practically in the center of the typhoon
which ravaged Europe. To remain
neutral has been the main policy OF
the Dutch for a long time, but the
rapid shrinking of the world has IN
creased-and in the future Will Stlu
more increase-the necessity Tor ANAL
pamating and combining with the
noyers that be if one wants to survive
There seems little doubt that even with
increased activities of peace and dis
armament conferences the survival OF
the fittest will be the survival OF the
biggest Napoleon I laid down the rule
that God generally helps the big bat
talionS.
There can be no doubt that many
farseeing and clever men in Hollanc
look with anxiety on the future OF then
colonial empire and think over the ne
cessity Of friendly cooperation VIII
one Of the great powers in the wor!o
There are two countries which mlgh
- bo.,7 co,,ej6arad for such a choice