Evening star., 1933-05-07
Britain Sees Great
Difficulties Ahead
BY A. G. GARDINER.

AOANOS4N, way U.-ElCIlllCI
Donald's return from Washington on
Wednesday. coinciding with the issu-
ance of invitations to the World Eco
nomic Conference, clears the decks for
a momentous grapple with the crisis In
world affairs, both political and eco
nomic. With regard to political affairs,
the outlook is overshadowed by the ter
rife social revolution proceeding in Ger
many and its incaiculable repercussions
on the European situation. Everywhere
On the continent the greatest tension
experienced since the war prevails and
the probabilities of an outbreak Of
hostilities is universal subject Of dis
cusSion.
The Disarmament Conference IS
trembling in the balance. owing to Ger
many's stubborn resistance to the
British plan, which is otherwise gener-
ally accepted as a moderate, sensible
scheme and the utmost at present OBJ
tainable.
Hopeful factors are the anxiety of
the American Government to secure a
satisfactory agreement before the
Economic Conference meets and the
attitude of France, which exhibits a
more accommodating temper than at
any time since the armistice-all the
more remarkable in the face of the
cyclonic condition of Germany.
1t is difficult to believe that Germany
will persist in her resistance, which,
while torpedoing the Disarmament
Conference, would leave her isolated
in Europe as the general enemy of dis
armament, peace and economic recov-
cry. Some gleam of hope that moderat-
ing influences will prevail is derived
from Chancellor Hitler's assurance to
the Polish Ambassador in Berlin on
Wednesday that Germany will act with
in the terms of treaties and desires
both countries to examine the situa-
ton in an objective spirit This is
important in view of the fact that the
Polish Corridor is the immediate
danger spot and that alarm prevails
in regard to the outcome of the Nazi
demonstration in Danzig at the end of
this month.
Assuming that the Disarmament
Conference reaches a favorable port,
the prospects of the Economic Con-
ference will be greatly enhanced. but
there are great difficulties ahead. The
war debt question still remains open.
Roosevelt, who has not yet addressed
Congress on the subject though his
own wishes are well known
Mr.. Roosevelt's other preliminary
gestures are regarded as equivocal. His
proposal for tariff truce for the dura-
tion of the Economic Conference has
been accepted by France with the pro-
viSo that compensation tax will be
applied to meet the fluctuations of cur
rencies. The subject was discussed at
the first meeting of Premier Macdonald
with the cabinet on his return. It Is
understood that the proposal was only
accepted with important reservations.
Nor is Neville Chamberlain, chancellor
of the exchequer, disposed to agree to
the American plea for the early stabil-
iZation of sterling without solid inter-
national guarantees against recur-
renee of the risks which precipitate6
its collapse in 1881.
1t is unfortunate that the atmos.
phere of the coming. conference has
been embittered by the feeling aroused
by the decision at Washington to re-
fuse to permit the export of gold to
meet the interest coupons on American
securities held abroad, or to release gold
placed by foreigners in American safe
deposits. This decision has created the
strongest resentment in financial circles
and the newspapers of all parties con-
demn the proceeding as a shattering
blow to financial confidence in the
world.
The Financial Times roundly de-
scribes the embargo as a calculated
breach Of contract; the Londcn Daily
Telegraph asks how Great Britain
would dare risk the hasty alterations of
currency proposed by America in the
face of such action, and the London
News Chronicle says that America in
striking this blow at the sanctity OF
private debt contracts is establishing .
dangerous precedent, adding. "Ameri-
can investors who have lent thousands
Of millions of dollars to Europe and
South America since the war can
hardly expect to have the letter of their
bond observed and the loans repaid in
gold dollars If Americas foreign credi-
tors are paid in deprecated dollars"
The insurance companies and invest
ment trusts hold vast amount of
American bonds guaranteed at the gold
rate and doubtless this decision will be
contested in the American courts. The
most favorable view Of the matter IL
that the action Is q part Of President
Roosevelt's strategy for influencing the
Economic Conference.
tCopyrisht. 1933.l