Evening star., 1933-05-14
British See Problems
In Economic Conference
BY A. G. GARDINER.

LONDON, May 13-With only
month intervening before the assembly
of the World Economic Conference in
London the prospects are that the mo-
mentous gathering will be enveloped in
a maze of difficulties, political, economic
and financial.
Premier MacDonald's statement in
the House Of Commons on Tuesday In
regard to his conversations with Presi-
dent Roosevelt was remarkable chiefly
for his cautious attitude on the war
debt question. He admitted that June
Is, the date Of the next debt INSTALL
ment. was an awkward hurdle" but
he urged that nothing be said on this
side to increase the difficulties Of clear
ing the hurdle.
Both Mr.. Macdonald and President
Roosevelt are in agreement that the
success Of the conference is dependent
on a fnal settlement of the debt ques-
ton before the conference reaches its
end. but the premier's statement was
taken to exclude the idea that a deci-
sion on the subject can be arrived at
before the conference. It suggested
that the solution emerge from the dis
cussions at the conference on means
of relieving the exchanges from the
strain caused by the existence of vast
international obligations requiring
transfers from one currency to another.
But while the ultimate decision Of
80 lAh% &C. I4fa I1
June IS is not postponab!e and the
British public is anxiously exercised in
regard to the payment to the United
States due that day. No provision was
made in the chancellor of the ex-
chequer's budget for the payment. and
the problem is complicated by Americas
departure from the gold standard and
the effect Of the payment in further
unsettlement Of the exchanges. On this
subject the word is with America and
the bearing of that word on the fate Of
the Economic Conference is recognized
as one of the dominant factors in the
situation.
The emphasis which the Roosevelt
Jung statement lays on the fact that
economic disarmament can only take
place in q world in which military dis
armament Is possible directs attention
path Of the Economic Conference. That
obstacle is the sensational development
of events in Germany.
Apart from the internal terrorism
which prevails in Germany. the COM
pleteness with which the Hitler dicta-
torship has destroyed the republic and
crushed the trade unions, the Social
Democratic party, the Catholic Center
party. the press and pacifist movements
has alarmed public opinion in Europe.
Even the state system. which, like the
Social Democratic movement, resisted
the mighty Bismarck. has collapsed like
q house of cards. In the course of a
few weeks Adolf Hitler has accom-
revolutions in history. whether he
will be able to consolidate the achieve
ment remains to be seen. As the die
tator Of so highly developed a capitalist
country he can draw no encouraging
analogies with either Facist Italy or
with Soviet Russia.
+
But whatever the internal course Of
events In Germany, the effect of the
convulsion on the European situation
has been disastrous Behind the social
upheaval is the specter of o revived
militarized nationalism that has fillec
the continent with panic and talk of
war. The more pacific attitude OF
France has received o desolating check.
Poland has hastened to make tefms
with Russia. Austria is trembling on
the brink Of q Nazi coup which would
bring the Little Entente powers into
the whirlpool, with Italy in an equivocal
position between France and Germany.
Nor has the truculent opposition by
Germany at Geneva to the British dis
armament plan. which promised to ~
deem the Disarmament Conference from
failure. helped matters any. The con-
ference Is struggling desperately against
an ebbing tide, to which the new claims
Of Germany and the new alarms Of
France equally contribute In these
circumstances President Roosevelt's con-
dition Of disarmament Is the first es-
senttal TO the success Of the Economic
Conference seems unlikely to have SUBJ
stAntial ftMllment.
Wnn1hAHs "a ny1AeDi0N v0otk- a 6.