Evening star., 1932-05-15
|FORE|GN BUSINESS
FUTURE HINGES ON
LAUSANNE MEETING
Chancellor Breuning's Repa-
rations Statement Proves
Vital to World Trade.
OPTIMISTIC ATTITUDE
| CONTINUES IN BRITAIN
French Industry Apparently Un-
disturbed by Changes Due
to Doumer's Death.
Special Dispatch to The star.

Special Dispatch to The Star.
NEW YORK, May 14.-Cable and
radio dispatches to the Business Week
give the following survey of conditions
abroad for the week ending today:
Beriin.-No development in Germany
last week is more significant to world
business than the statement by Chan
cellor Bruening: THE Lausanne con-
ference will either be the road sign
pointing the way to new life or a
milestone leading to collapse. There
must be an end at last to our sacri-
fees. The world must realize we simply
cannot pay reparations"
Business was practically undisturbed
by the brief meeting of the Reichstag.
Only three major items were consid-
ered-the budget, the arrangement with
Lee Higginson to prolong the credit to
the Reich and the plan for a domestic
lottery loan to provide funds for public
works which will absorb the unem-
ployed.
Boerse Holds Steady.
The Boerse has remained relatively
steady. Some encouragement is being
culled from the dividends which a
number of companies have been able to
maintain, though at a reduced rate.
Bonds were slightly stronger Bank
| AuDIClSS were QOW1 IN ADrU.
But the whole situation is artificial.
Everything Is being kept going, but in
a state more or less of suspense, await
ing the outcome at Lausanne.
London.-Britains mood this week Is
not easily defined. There Is still strong
underlying optimism, built in part on
pride that the budget is balanced and
IN part that the trade position is in
hand. But there is also the recurring
uncertainty whenever i'll rumors reach
the city. The palpable bankruptcy Of
Cosach, the straits in which Anglo
Oriental tin interests find themselves,
and the news (not made public of
banking run in Austria, and guarded
advices that a Scots investment trust
Is in grave trouble-all these were in
the grist recently, and had an effect on
business sentiment
In addition, the number of unem-
| ployed registered an increase of IS 900
| in the last report After a decline for
several months, this had a dampening
| effect on the city. despite the fact the
| total number of unemployed now is
no greater than 1t was at this time
last year.
Real encouragement came from only
| a few sources this week. Perhaps the
| outstanding bright spot was the French
elections, at least as they were inter-
| preted by London.
Paris.-French business weathered a
double political shift last week
| with relative calm. Neither the un-
fortunate assassination of President
Doumer. and the election of M. Lebrun
to replace him. nor the decided victory
Of the Left parties in the Chamber
elections has had more than a tempo
rary unsettling effect. and no further
serious reactions are anticipated.
Business during the week failed to
reflect the encouraging report Of de-
Ginning unemployment for the sixth
consecutive week. Freight movement
continued to dwindle, and industrial re-
ports showed no increase In activity.
Industry Quiet.
Coal and iron and steel activity con-
tinue to contract. The iron and steel
industry, particularly, has been hard hit
oy the new British tariffs put upon
semi Negotiations which
American business men were carrying
on In Washington TO claim retaliatory
action. on the unfair discrimination by
Paris have been halted until it Is known
what Is to be the policy Of the new
government. Most observers are in
clined to look for a definite change.
Far East.-Internal conditions in the
Far East, more or less successfully COW
cred up for long time by the fanfare
OF military operations. are in bad shape,
and neither government nor business is
able to hide 1t much longer
The extent to which China was weak
ened by the Shanghai struggle is just
beginning to be fully realized. Finances
are badly disorganized. Trade is find
ing it difficult to return to the old
routine. Exchange is low. Confidence
is badly shaken.
Japan is equally respondent over
| home conditions. Silk prices touched
an all-time low last week and inf1u-
enced the foreign trade balance for the
first 10 days of May, which is still un-
favorable. Strict foreign exchange con-
, troll is provided in bill before the Diet.
Like shipping interests throughout the
world, Japan's great lines are facing
financial difficulties.