20 JUNE 1931, Page 1

Germany, Reparations and War Debts It is still uncertain whether

Dr. Bruning will be able to maintain his Government in power for long, but he has at least won a temporary success. The Procedure Committee of the Reichstag has allowed him to continue with his " policy of fulfilment " without the insuperable difficulties which would have been raised by parliamentary discussion. Nobody in Germany believes, however, that this policy can be carried out without some assistance from other Powers. We have regarded the proposed Austria Customs Union as one way in which such assist- ance could be given. A further suggestion has now been made unofficially, though we understand with official sympathy, in Italy, and deserves more attention than it has received. It is that those Powers, including Italy and, of course, France, which receive more in reparations than they pay away in discharge of war debts, should sacrifice this " margin " to relieve German finances. It is naturally also designed to induce the United States to consider re-opening the question of war debts.

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